2018 CISAC Global Collections Report: music collections
08 November 2018 - Press releaseGlobal collections for music are up 6.0% to €8.3 billion (US$9.4 billion). Collections have risen for five years in a row and are up 28.3% from 2013.
Collections for music grew in all regions of the world in 2017.
Digital growth
Digital collections are reported over the €1 billion mark for the first time, rising to €1.25 billion. Digital music collections have surged 164% since 2013.
Digital champions: among sizeable markets, Sweden, Mexico and Korea have the leading digital shares of total collections with a digital share of roughly one third in each country (35.1%, 34.9% and 33.4% respectively). Australia/New Zealand saw digital growth of 62.6% in 2017. Australian music society APRA AMCOS saw digital (AUD134.5m, EUR85m) overtake broadcast as the largest collections source in the year to July 2018.
Digital is still underperforming for creators: despite growing 23.1% in 2017, digital accounts for just 15% of all collections, with the largest platforms in terms of use (such as YouTube) delivering a small fraction of that share. In Asia-Pacific, digital accounts for 24.4% of collections, and in the USA/Canada region, 17.1%.
Digital collections growth is largely supplementary to, and not cannibalising, traditional income. In 15 of the world’s top 20 collecting countries, TV and radio income grew from 2013-2017, alongside sharp digital growth
Largest uses see growth
TV and radio remains the largest use of music at 40.8% of global collections, and collections are up 3.2% despite pressure on rates from broadcasters.
Collections from private copying jumped 28.4% year-on-year to total €342 million in 2017, adding more in year-on-year global collections than the largest segment, broadcast. Private copying income is up 151% since 2013, helped by large settlements and back payments in Germany, France and other markets.
All regions see collections rise
Europe leads the way in 2017 with €4,349 million (US$4,912 million) in collections, up 5.2%, representing 52.2% of global collections.
Canada/USA grows 7.2% in 2017. Collections of €2,123 million (US$2,398 million) place them second after Europe, with 25.5% of global collections.
Latin America & the Caribbean is the fastest growing region, up 23.6% to €538 million (US$607 million). Brazil is driving growth, particularly audiovisual uses of music, for example in video-on-demand.
In Africa, huge untapped potential is visible: collections rose 15.7% to €69 million (US$78 million). Several countries posted significant increases, including Senegal (in digital), Morocco (private copying) and Ivory Coast (live). Africa still accounts for less than 1% of all music collections globally, however.
The biggest collections market is the US with €1.89 billion (US$2.13 billion), growing 7.0% year-on-year.
France remains Europe’s champion with 2.1% year-on-year growth to €886 million (US$1,001 million) in collections. Digital alone has more than tripled in 5 years, rising 7.9% in 2017, helped by a multi-territorial licensing approach.
Brazil is now a top 10 collections country, with income up 39.1% to €252 million (US$285 million), thanks mainly to sharply increased audiovisual uses of music.
China continues to post strong increases, rising 18.4% year-on-year, and more than doubling in the last five years (2013-2017). China still generated only €27 million (US$30 million) in collections in 2017. A pending copyright amendment bill has the potential to alter the collections landscape in the future.
Legislative influences
Private copying growth depends on good laws and enforcement. Levies for musical societies reached €342 million (US$386 million) in 2017 and have gone up 151% over five years. Private copying can boost developing markets with an improved legal and enforcement environment.
Digital collections are held back by a fundamental market flaw. A new study commissioned by CISAC – “Economic Analysis of Safe Harbor Provisions” by Professor Stan Liebowitz – shows how copyright safe harbour regimes are distorting the digital market globally. Subscription services like Spotify and Apple Music are at a disadvantage, generating lower revenues and with a reduced user base, due to user-upload content services like YouTube exploiting safe harbour legislation.
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