2020 has been unlike anything most of us have seen in our lifetimes.
The Covid-19 global pandemic has turned what we knew as “normal” upside down, may it then be a day to day activity or a concert or event.
While the world came to almost a screeching halt in March of 2020, since then live music events, concerts and festivals seem like a thing of the past and something we are all unsure will return. This has obviously taken a massive toll on the industry and the annual IMS Business Report details how far this impact goes.
International Music Summit (IMS), the premier platform for business, culture, and education in global electronic music released the annual IMS Business Report for 2020, authored by data analyst Kevin Watson.
As the report showed, before the pandemic, the valuation of the electronic music industry was up largely driven bt DJ earnings and festivals. This has now taken a downward turn and the report predicts the industry will see a 56% fall over the rest of the year.
The report reveals that despite falling two places to be the World’s fifth most popular genre, electronic music had a positive global result in 2019. Earnings of the top-ten Artists increased 4% year on year to $273m, clubbers contributed half a billion Euro income to the Ibiza economy alone and the overall industry valuation increased by 2% to $7.3bn, following a slight dip in the previous two years.
The value of the global industry is predicted to be $3.3bn, a fall of 56% from $7.3bn in the previous year. Dance/electronic clubs & festivals could lose 75% of their income in 2020, equivalent to $3.3bn. DJ and artist income could fall from $1.1bn in 2019 to $0.4bn in 2020, a drop of 61%.
Other key findings from the report that rounded up for 2019 –
- In the USA Dance/electronic share rebounded in 2019 to 3.6% of volume, from 3% the previous year.
- Dance share of value in Germany reached an all-time high in 2019; the total value has trebled since 2010 to €118m.
- Over the past 5 years Dance has lost out to Hip Hop/Rap in the UK: Dance share has almost halved, to 9.1%, Hip Hop’s has doubled to 21.5%
- IFPI research shows Dance is the fifth favourite genre globally; with big growth opportunities in China, India, Mexico, S. Korea.
- Techno remains the number one genre on Beatport and has been for the past 4 years.
DJs and Live Acts
- DJ earnings rebounded in 2019, according to Forbes the total earnings of the Top 10 was $273m.
- Charlotte de Witte played over 1.5 more festivals in 2019 than 2018, Lost Frequencies was the most prolific festival act, playing 49 sets.
Ibiza clubbers spent €260m in 2019, with more than 2 million club tickets sold.
- Highlights from 2020 so far have seen the industry adapting quickly and hence live streams leading the way and festivals and clubs seeing massive lows. –
- In May 2020, 7 of the 10 most-watched music streams on Twitch were electronic music focused, totalling 6m viewer hours.
- Mad Decent gained 35m views in 11 weeks on Twitch via Electronic music & gaming, although ‘copyright muting’ was an issue.
- DJs who performed in Fortnite increased their Instagram follower growth by ten times during and after the event.
Clubs & Festivals
- By April 20 approximately 350 Electronic festivals had been cancelled or postponed, with 8.9m fans unable to attend scheduled events.
- The current club/festival alternatives being trialled are unlikely to be commercially viable for venues, including Live stream, Drive-In Gigs, Distanced Dancefloors.
- The continued growth in streaming is expected to generate $0.1bn in additional revenue for Dance/Electronic in 2020.
- Revenue from Electronic Music software, hardware and other sources could fall 25% YoY in 2020 to $0.7bn.
Find the complete details and read the entire report here.