Spanish recorded music market closes 2022 consolidating the growth of the last 5 years

14 March 2023 - Press release

PROMUSICAE presents music sales figures for 2022

• Revenues maintain double-digit growth, adding 12.43% to what was achieved in 2021
• The contribution of music sales exceeds 400 million euros with a growth of more than 9%
• Nearly 36% of the population uses audio music platforms
• For the first time we surpassed 5 million premium subscribers to audio platforms

The Spanish recorded music market closed 2022 with total revenues of 462 million euros, a 12.43% increase on the 411 million achieved in 2021. This figure appears in the beginning of the economic report published today by PROMUSICAE, the organisation that brings together more than 95% of the Spanish recording market, which retail music sales in digital and physical format (in retail price value), synchronisations (use of music in advertising or audiovisuals creations) and income derived from the management of intellectual property rights of artists and producers. Of this overall figure, 87% is generated by music sales, with 402 million, thus surpassing the "psychological barrier" of 400 million, which brings us closer to 2006 levels, still far from historic highs.

The digital market now accounts for almost 86% of the music consumed in Spain (345 million) in a context in which the relevance of physical sales continues to diminish (falling to 56 million euros).

 

Streaming dominates the music market
2022 confirms the growth trend of music consumption via streaming in the Spanish market. Of the 345 million euros that the industry earns from digital sales, just over 98% comes from streaming, which accounts for 340 million euros. Of this, audio platforms contribute 280 million euros to the industry, compared to 60 million euros from video.

Digital consumption of both audio and video will therefore grow by 13% and 16%, respectively, compared to 2021. These figures represent 17 million Spaniards using audio streaming service platforms in 2022, of which 5.2 million did so through premium subscriptions to obtain the additional benefits provided by music platforms, 18% more than in 2021. The rate of growth is therefore steady, highlighting the public's interest in recorded music. In the current context of economic uncertainty, consumers are not renouncing the advantages offered by premium accounts, even though in Spain we are still far from the percentages of premium subscriptions in other countries with more mature and aware markets.

The presence of recorded music on social networks continues to be prominent on platforms such as Facebook, Instagram, as well as through short videos on Tik Tok and Youtube, which, as attested by the data reflected in the IFPI report Engaging with Music 2022, for 63% of Spaniards music plays a central role in the time they spend on these applications. The recording industry is undoubtedly making a constant effort to innovate, test and adapt so that music is present on all the platforms and applications that are emerging, bringing it closer to consumers in increasingly diverse formats depending on current demand.

The rest of the digital market is provided by permanent downloads and the sale of mobile products, which, although they continue to decline, had a combined turnover of 5 million euros.

 

The triumph of vinyl
In a physical market that continues to shrink, vinyl remains the mainstay of the market.  Thus, 2022 confirms the upward trend of recent years, with 15% growth that puts it above 52% of the physical market in terms of turnover, generating a value of 29 million euros compared to the 26 million euros contributed by CDs, which now account for 47% of physical product sales.

In terms of units, more CDs are still being bought than vinyl (2.6 million units compared to 1.7 million vinyls shipped in 2022), but the public is willing to pay more for this format that attracts both the nostalgic and the new generations that placed Rosalía's album, Motomami, as top 1 in vinyl sales in Spain in 2022. In addition, the industry believes that, without the bottlenecks that have been experienced in the manufacturing and supply chain, even higher figures could have been achieved.

The physical market continues, therefore, without recovering from the fall of 2020 and remains close to the figures recorded in that fatal year, generating sales of 56 million euros.

 

Free streaming and piracy
Even though today it is more accessible than ever to enjoy recorded music legally, according to the IFPI report Engaging with Music 2022, 32% of people in Spain still use unauthorised or unlicensed methods to listen to or download music. In the case of young people between 16 and 24 years of age, the percentage rises to 49%, confirming that the industry and public authorities need to continue working to raise awareness among young people of the importance of consuming music legally and paying for it.

 

Intellectual property rights almost doubled
The income received by the industry in terms of intellectual property rights has been a good lifeline for the record labels, as during 2022 it has increased by 42%, contributing 56 million euros, although this figure is somewhat distorted by the recovery of pending adjustments for private copying, and the return to normal activity after the restrictions of the pandemic in sectors such as the hotel, restaurant or nightlife sectors, which have an impact on higher royalties generated by the use of music in public venues.

In the other income section, income from synchronisation of music for audiovisual productions and advertising has also been maintained, bringing in 3.2 million euros.

 

Industry assessments
The recorded music industry closes a good year with the consolidation of streaming. Thus, in the words of the President of PROMUSICAE, Antonio Guisasola, "Closing 2022 maintaining sustained growth over the last five years, despite the slowdown in the pandemic, is great news that rewards the effort, work and investment of the entire recording sector in our country, and opens a window of hope to reach levels of previous decades, since, with music sales of more than 400 million euros, we are close to the line of 2006", in any case, he adds that "although the sector is working hard, the complicity of public institutions is still necessary to support the efforts of the private sector with mechanisms such as tax incentives (which other cultural sectors already enjoy), for example, or aid for phonographic production for emerging talents, and the promotion of consumption with initiatives such as the "bono cultural", to ensure that the Spanish repertoire stands out at a time of extraordinary competition from musical proposals from other countries, not only Anglo-Saxon or Asian, but to a large extent Spanish-speaking countries". In the words of Guisasola, "countries around us such as the United Kingdom and Italy, which are encouraging the private sector from the administration, are achieving great benefits for the country's brand and culture through music, and ours cannot be left behind in this highly competitive environment in which we have the strategic asset of the Spanish language".