What's Happening?
The global value of music copyright has nearly doubled over the past decade, reaching $47.2 billion in 2024, according to a study by Pivot Economics founder and former Spotify chief economist Will Page.
This growth is attributed to increased revenues from record labels, publishing, and songwriting worldwide. The study, supported by IFPI, CISAC, and ICMP, reveals that $29 billion of this value comes from labels, $13.6 billion from songwriter collective management organizations, and $4.6 billion from direct publisher revenues. Despite the overall growth, the rate has slowed compared to previous years, with a 5.2% increase from 2023 to 2024, down from an 11% increase the previous year. The U.S. market has become more dominant, accounting for 38% of global record label revenues, up from 27% in 2011.
Why It's Important?
The doubling of music copyright value underscores the significant economic impact of the music industry, particularly in the U.S., which remains the most lucrative market. This growth reflects the increasing importance of streaming services and the shift in revenue distribution between labels and publishers. The U.S.'s growing share of global revenues highlights its central role in the industry, suggesting that success in the U.S. market is crucial for global recognition. However, the rise of AI and potential reporting gaps pose challenges to future growth, indicating that the industry must adapt to maintain its upward trajectory.
What's Next?
The future of music copyright value is uncertain, with potential impacts from AI and existing reporting gaps. The industry may face challenges in maintaining its growth rate, particularly for publishers. Stakeholders will need to address these issues to ensure continued success. The U.S. market's dominance suggests that strategies focusing on this region could be beneficial. Additionally, the concept of 'glocalization'—local-language music achieving global success—may offer new opportunities for growth in diverse markets.
