The global electronic dance music (EDM) industry has recovered so strongly from COVID-19 issues that it now stands at $11. 8 billion (A$18. 07 billion).
It’s more entrenched than ever in the mainstream, with a new generation of EDM enthusiasts joining in from South Africa, Mexico, India, and Brazil.
“It illustrated the developing cultural footprint of electronic music culture and its colourful scene,” said Mark Mulligan, managing director and lead analyst at London-based MIDiA Research, which this week presented the tenth IMS Business Report 2024 at the IMS Ibiza Summit.
Australia is ranked as the third-largest electronic music market for Spotify fans, with Germany leading the way, followed by the United States.
The report points out that Australia stands out for having ten times more electronic music listeners than its entire population.
The United Kingdom ranks fourth, followed by Brazil, India, Mexico, South Africa, Canada, and France.
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The report also focuses on South Africa, as it has about twice as many electronic listeners as people, which “reflects the degree to which South Africa has built its own electronic scenes and cultures. “
After its 34% rally in 2022 to $11. 3 billion (A$17. 2 billion) due to pent-up demand, EDM executives are under pressure to make it just an occasional phenomenon.
But last year it rose to 17 percent. “It’s not just about recovering, it’s about bouncing and almost bouncing on the trampoline,” says Mulligan.
There is significant growth, especially in festivals/clubs, recordings and publishing. In 2019, the global dance industry was valued at $8. 7 billion (A$13. 3 billion).
Ben Turner, co-founder of IMS, publishes two issues. The new report reflects the extent to which electronic music is now embedded in mainstream culture – from festivals to films, from finance to fashion – and the genre is now ubiquitous in society.
“We’ve gone from separate scenes or unique moments to a permanent culture that’s hard to escape!
He also notes, “The pent-up call to record in 2022 also reflects the arrival of a new generation that is proving to be passionate, unwavering, and eager to revel in all that is possible. “
Here are 11 takeaways from the report.
Festivals and clubs continue to dominate revenue and account for almost a portion of the industry’s total. This is due to pent-up demand for live events after pandemic lockdowns.
Mulligan cautions that executives and enthusiasts shouldn’t “expect this kind of expansion to take place next year and the year after,” but acknowledges that this industry “will continue to be bigger and more established than before. “
Music hardware and software is the second-largest segment, accounting for about a quarter of the total, and is “an area of long-term expansion” in EDM. The combined production and DJ area generates $108 million (A$165. 9 million).
After a slower 2022, the global EDM recorded music market expanded strongly again in 2023, emerging 10% to $31. 2 billion (A$47. 2 billion). And that’s despite the burden of geopolitical and life concerns, Mulligan said.
Streaming is the largest at $21. 9 billion (A$33. 6 billion), an expansion of 10%.
The physical one costs $4. 4 billion (A$6. 7 billion), the virtual one is $1. 1 billion (A$1. 6 billion) and the “other” one, adding licenses and extended rights, is $5. 7 billion (A$8. 7 billion).
As with other music sectors, in countries such as Australia, Spotify has the largest market share, with 30. 5%, or 187. 8 million subscribers.
Apple Music has 13. 7 (84. 7 million subscribers) and Tencent Music has 13. 4 (82. 7 million subscribers), ahead of Amazon Music in third place.
Currently, Spotify’s three largest markets are the United States, Germany, and the United Kingdom. But MIDiA shows that emerging markets are catching up fast. China leads the growth, followed by India, Indonesia and Thailand.
“In the past, in the classical recorded music business, there was a lot of profit and other people had a lot of money to spend [on] CDs or vinyl. . . So, as a result, the richest countries were the ones that shaped “The Music Business. Mulligan comes out. “
EDM has a large presence on TikTok, with IMS Business Report calling it “a central position for fan engagement. “
As of March 23, the average number of video creations with the hashtag #ElectronicMusic has increased by 113% since June 2022 and has amassed 5. 9 billion views worldwide.
MIDiA predicts that TikTok, along with Twitch and Matter, will be a major contributor to EDM earnings in the future.
In terms of social media growth, EDM beats Hip Hop on TikTok with a 21-to-2 rate and on Instagram with a 19-to-15Array rate.
However, hip hop leads the expansion of streaming subscribers on Spotify (from 24% to 13%) and YouTube (from 11% to 9%).
EDM has surpassed Rock on YouTube, Instagram, and TikTok and is last in number of Latin and rock music streams.
In a survey of members of the Electronic Music Association and IMS delegates, 82% of respondents believe the industry does well on gender issues, such as diversity in queues and employees.
But, as the report shows, gender creators complain that they are treated differently, preventing them from reaching their potential.
33 percent say they have been ignored when it comes to opportunities, up to 20 percent of those who identify as men, 30 percent have their job questioned (up thirteen percent) and 27 percent notice a pay gap. (to 16 percent).
23 percent are fired or disrupted from meetings (vs. 6 percent), 22 percent feel excluded from meetings (vs. thirteen percent) and 23 find their work judged unfairly or against them (vs. 14 percent consistent with 100).
More EDM is being listened to on YouTube, accounting for 52 percent, while 46 percent of consumers consider it the place where they find their newest beats.
That’s quite a lot for radio (32 percent vs. 33 percent), streaming (31 percent vs. 28 percent), social media (26 percent vs. 24 percent), TV, video and gaming (26 percent vs. 25 percent) and TikTok (24 percent vs. 29 percent).
Tech House remains the most downloaded subgenre on Beatport, with Afro House falling from position 18 in the first quarter of 2022 to the ninth position in the third position of 2023. Beatport’s list is as follows:
House of Technology
House
Tecno (tip/drive)
Melodic House
Drums & Bass
Dance/Electro-Pop
Deep House
Minimal/Deep Technology
Progressive House
Afro House
EDM’s independent teams are growing their market for the fourth consecutive quarter, an increase from 17 percent to 31 percent, “hinting at a new generation of forward-thinking independent labels” such as HYBY and Believe.
The report states: “HYBE and Believe have experienced the fastest growth, spearheading a new generation of record labels seeking revenue streams strongly aligned with the dynamics of today’s fan- and creator-centric music industry. “
The percentage of primary brands will increase to 7% in 2023.
Publishing revenue grew more than twice as fast as recorded music, despite a slowdown in catalog acquisitions due to rising interest rates.
This is due to higher profit rates for publishers and songwriters.
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