ELECTRONIC MUSIC INDUSTRY PIONEERS THE NFT & DIGITAL SPACE, AS MARKET VALUATION REACHES $6 BILLION.
International Music Summit (IMS), the leading platform for business, culture and education in global electronic music, today released the full findings of the annual IMS Business Report 2022 in a live presentation at IMS Ibiza 2022.
The IMS Business Report presented by PIXELYNX and powered by Viberate aims to be the definitive account of electronic music business and cultural music trends covering every aspect of the industry. The data is based on IMS analysis of key facts and figures from decision makers, leaders, visionaries, and central organisations across the industry. Providing vital statistics on the status and economic movement of the electronic music sector with information from over thirty interviews and detailed analysis of over 40 data sets, many exclusive to IMS.
The report is produced for IMS by David Boyle head of Audience Strategies who has previously built global analytics and data insight capabilities for major companies including The BBC and EMI Music and has used data to help elect a prime minister and a president. With many key financial, economic and cultural finding in this year’s analysis broken down in detail. With major themes emerging which can help to guide and inform the industry. These findings include:
With total industry valuation at $6 Billion, the Dance and Electronic Music market grew strongly in 2022 compared to 2020, up 71% but still not reaching its pre pandemic levels. The recorded music market continued to grow also, including growth in physical sales. Beatport continues to buck the trend achieving 13% growth despite the downloads market declining by 15%.
Festivals and clubs bounced back in 2021, however not without challenges. Continued restrictions meant that record consumer demand couldn’t be met. Events that were possible were often hampered by challenges with audiences, artists, staff and suppliers.
DJ Software and Hardware value up 14%. The end of the 2020 home DJ boom was offset by the return to live, this too was hampered due to chip shortages and global shipping challenges.
Web3, Metaverse, NFTs, Blockchain, DAOs and Technology playing a fundamental part in the report, showcasing the adoption of new ways to build monetizable relationships with audiences. Electronic artists pioneered NFTs for digital collectibles. 7 of the top 10are electronic music artists. 64% of all identified music NFT issues worth $55.4m were issued by electronic artists. Younger digitally native artists to cut out the middleman and build directly monetised relationships with fans.
Gaming is more than 20x the size of the electronic music industry and growing rapidly. With early commitment from major labels on a level not seen before, Sony has $250m in Fortnite and has just invested a 1$Billion in Epic games. Warner has eight figures in Roblox and a number of partnerships with digital experience companies. All amounting in hard cash investment bridging the entertainments digital and physical worlds.
Giving back to the industry is now showing to also be big business especially around education. IMS counted 138 electronic music education providers, with Electronic Music Label Toolroom now having 7,500 alumni out in the world, making music that were trained at their DJ academy. Electronic music also had a positive impact with the sector coming together, stepping up with fundraising compilations to support Ukraine and reacting to wider world events.
There has been progress made in terms of diversity 2021, but still a long way to go. Representation and demand for people of colour in the DJ Mag Top 100 grew in 2021. However several years of slow growth in demand for female representation in the DJ Mag Top 100 stalled in 2021. Audiences voted 12 female DJs into DJ Mag’s top 100 DJs in 2021. Down 1 vs. 2020 – the first drop in numbers since 2016.
“There is a great deal of excitement about the new sounds, artists and business models coming through. It was a joy (and a challenge!) going beyond the hype to dig into the data behind Amapiano, Nia Archives, PinkPantheress, NFTs, the Metaverse and Spatial Audio for the report.” David Boyle.
With fresh young talent are breaking into the Top 100 and new technology changing the rules, there is still optimism for the industry and its recovery going forward. Web3 and The metaverse promising to create a new chapter and possibly change everything we know about business models in the near future.