Royalty revenue for global creators hit a record high in 2023, driven by strong growth in live and public performances, CISAC revealed in its latest global collections report.
CISAC’s 227 CMO members worldwide reported a total of EUR 13.1 billion euros 2023 collection, most Annual growth of 7.6%The organization said in a report released on Thursday (October 24).
This is equal to $14.2 billion Calculated at average 2023 exchange rates.
The vast majority come from music collections, with publishers and songwriters receiving royalties as a percentage of what their societies collect 11.75 billion euros (US$12.72 billion), the total number of Annual growth of 7.6%.
This marks a slowdown from 2022, when songwriters and publishers saw 28% annual increase Add to collection. Despite this, the total music collection is still 31.6% That’s above levels in 2019, the last full year unaffected by the pandemic.
Highlighting 2023 is the live and public performance collection, which has grown 22% annual increase arrive 3.28 billion euros ($3.55 billion), live events continue to recover from the pandemic-era slump.
In fact, live events are now fully restored, with more collections in 2023 than in 2019 12.7%.
Increased number of digital collections Annual growth of 9.6% arrive 4.62 billion euros (US$5 billion),Compare Annual increase of 33.5% Growth came the year before, when digital became the world’s largest source of collections for the first time.
Between 2019 and 2023, digital representation 87.2% The CISAC report said the increase in royalties. The only area that did not grow during this period was radio/television, whose contribution to growth was -1% As far as music royalties go.
However, CISAC raised a number of concerns about digital income, including a significant slowdown in growth and unsatisfactory earnings for all but the most successful creators.
“Despite increases in royalties from digital platforms, the vast majority of creators say streaming revenue does not support careers or livelihoods,” the report states.
“This is especially true for those outside the inner circle of highly successful artists, and those who cannot rely on other sources of income, such as live performances, to build their careers.”
CISAC said it saw signs that the digital subscription market was starting to mature “in larger regions”.
“Both the video and music streaming markets will continue to grow in the coming years, but they also face challenges.” James DuvallChief Analyst, Unsourced consultationwrote in the report.
“Growth will begin to slow as the services industry begins to reach saturation points in core developed markets… Various pressures are affecting the landscape. The cost of producing content has increased, local film quotas need to be filled, and as more services Competition is also intensifying when entering the content field. Therefore, established companies need to explore new revenue sources to support profits.
“Incumbent companies need to explore new revenue streams to shore up profits.”
James Duvall, Futuresource Consultants
To that end, streaming services and labels are focused on better monetizing superfans, a segment of the music audience willing to pay more for greater access to their favorite artists, exclusive content and other benefits. Digital providers have also begun raising subscription prices.
Duvall warned, however, that price increases may be limited.
“Futuresource research shows that more than 33% of users canceled a service in the previous year because it was too expensive and/or they couldn’t afford it,” he wrote.
“Furthermore, more than one-third of unsubscribers would resubscribe if cheaper plans were available. Promotional offers, such as 50% off or 3 for six months, would encourage one in five consumers to resubscribe.
By geography, the United States remains the largest source of music collections for CISAC members, with 2.8 billion euros (US$3.03 billion) By 2023, Annual increase of 8.1%. U.S. CISAC members include AMRA and ASCAP.
The second largest market is France (sasem), and 1.4 billion euros (US$1.51 billion) in the set, up 5.1% compared with the same period last yearfollowed by the UK (Music PRS) exist 1.1 billion euros (US$1.2 billion), up Annual increase of 7.1%.
The fastest growing region is Latin America, where music collections surge Annual growth of 26.2%arrive €694 million ($751 million), followed by Eastern Europe, which rose Annual growth of 10.4% arrive €399 million ($432 million).
Europe remains the largest source of music collections, accounting for 51.1% of total, followed by the United States and Canada 27.1%.
Artificial intelligence is attracting increasing attention
In the preface to the report, the President of CISAC Bjorn Urvaus Identifying the need for consistent policy to address the growing role of artificial intelligence in music.
“I am a user and big fan of artificial intelligence tools. I have always believed that we can only embrace new technologies rather than try to prevent them – but with a firm warning: this must not be at the expense of copyright and human rights,” Ulvaeus wrote road.
“Recent studies have estimated the potential revenue losses for creators in France, Germany, Australia and New Zealand, which is a wake-up call for us all. I believe that a poorly regulated AI environment could destroy The career of many artists. That could be the next Paul McCartney or Taylor Swift.
“I believe that a poorly regulated artificial intelligence environment could destroy the careers of many artists. That could be the next Paul McCartney or Taylor Swift.
Bjorn Urvaus, CISAC
One of the reports Urvaus cited was that of France’s National Security Agency. sasem and german echowhich shows 27% Creators’ incomes are at risk in the medium term due to artificial intelligence.
“There is no doubt that the decisions policymakers take in the near future will have a huge impact on creators and the future of our culture,” said the CISAC Director General. Gadiolong he wrote in the foreword to the report.
Oren also pointed out that the currently booming live broadcast market may be at risk due to the closure of some market-wide venues.
“The industry is fragmented and vulnerable in many areas…Government support to protect the fresh food industry has never been more important.”
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