Music sales spike in 2020 amid coronavirus pandemic
Music sales rose sharply in 2020 as more people turned to streaming services for entertainment during the pandemic, leading to billions of dollars in growth for the music industry, according to a report released Tuesday.
The International Federation of the Phonographic Industry (IFPI), a nonprofit organization that represents the recording industry, found in its annual Global Music Report that the global recorded music market grew by 7.4 percent in 2020, the sixth consecutive year it increased.
The report noted that the increase was primarily driven by an 18.5 percent increase in revenues from paid subscription streaming services, with a total of 443 million users of music streaming services recorded by the end of 2020.
Revenue for both paid and advertising-supported streaming services increased by 19.9 percent to reach $13.4 billion, accounting for roughly 62 percent of total global recorded music revenues, according to IFPI.
In terms of 2020’s best-selling artists, K-pop stars BTS came out on top, followed by singer and songwriter Taylor Swift, rapper Drake, singer The Weeknd and pop star Billie Eilish.
The rise in streaming revenues helped to significantly offset the losses in revenue from other formats, including physical format and performance rights as lockdown orders prevented people from making in-person purchases, as well as attending concerts and festivals.
“As the world contends with the COVID-19 pandemic, we are reminded of the enduring power of music to console, heal and lift our spirits,” IFPI CEO Frances Moore said in a statement along with Tuesday’s report.
“Some things are timeless, like the power of a great song or the connection between artists and fans. But some things have changed,” Moore continued. “With so much of the world in lockdown and live music shut down, in nearly every corner of the globe most fans enjoyed music via streaming.”
The chief executive went on to say, “As record companies continue to expand their geographical footprint and cultural reach, music has become more globally connected today, than ever before and this growth has spread across all regions around the globe.”
“With many impacted by the pandemic, and concerned with growing social injustices, record companies have worked hard to make a meaningful, lasting contribution to the world we want to live in,” Moore added.