DANCE MUSIC INDUSTRY GROWTH PHASE WITH 17% REVENUE GROWTH IN 2023.

The annual thought-leadership platform at the intersection of culture, education, industry, and wellness in electronic music, announces today full details of the annual IMS Business Report 2024. Presented live at the IMS Ibiza summit the new report builds on the success of previous editions to present the definitive vision of the global dance music industry of today.

Now in its tenth edition, the report is authored by MIDiA Research’s Mark Mulligan for the second year running. MIDiA Research is a leading provider of research, analysis and data for the digital entertainment business, with a team of analysts and consultants focused on everything related to where tech and entertainment meet.

“2022 was an unusual year, in that it reflected the post-pandemic bounce back effect for live. There was a risk that 2023 would struggle to live up to those inflated expectations, but instead the electronic music industry grew strongly once again, with impressive growth across virtually all of its constituent parts. What is more, electronic music culture grew its fan bases faster than other leading genres, in part due to the rapid rise of African music and fans, illustrating the growing cultural footprint of electronic music culture and its vibrant global scenes.” Mark Mulligan (MD & Analyst, MIDiA Research).

This year’s report features a number of exclusive MIDiA datasets including a survey with Association For Electronic Music (AFEM) aiming to be the definitive account of electronic music business and cultural music trends covering every aspect of the industry. AFEM is an independent, not-for-profit, democratically run global trade association created to connect, and represent the common interests of, those companies and individuals whose business is Electronic Music and stands at over 270 member organizations across 29 countries.

With many key financial, economic and cultural findings in this year’s analysis broken down in detail highlighting major emerging themes which can help to guide and inform the industry.

The global dance music business is now firmly in its post-pandemic growth phase with 17% revenue growth in 2023 and a total industry valuation reaching $11.8 billion with notable growth particularly across festivals / clubs, recordings, and publishing.

Festivals and clubs continue to dominate revenues (nearly half of the industry total) while music hardware and software was the next biggest segment (around a quarter of total).

After a slower 2022, the global recorded music market returned to strong growth in 2023 up 10% coupled with a return to growth across most formats including physical, with streaming growing 10% yet still outpaced by licensing and expanded rights.

The report reveals that Non-major labels increased their market share for the fourth consecutive quarter, reaching 31% hinting at a newer generation of independent future-focused labels. Despite a slowdown in catalogue acquisitions due to rising interest rates, music publishing continued to perform well in 2023.

Electronic music fandom and consumption is thriving and growing its share of global culture, far outgrowing other major genres, and with Mexico, India, and Brazil representing the newer wave of global electronic music markets there is no question that South Africa emerged as a leading hotspot for electronic music fans.

While the impressive growth the electronic music industry experienced in the previous year of 2022 was skewed by the live sector enjoying its post-pandemic rebound. There was a risk that 2023 growth would struggle to maintain the pace – instead, 2023 was another strong year of growth.