Monday April 24, 2023 by MASHENE Music, Las Vegas
Move over, major music publishing companies! Independent music companies are making waves, commanding a significant 27.1 percent share of the global publishing market, according to a revealing report from the Independent Music Publishers International Forum (IMPF), with funding from the EU’s Creative Europe.
The detailed 30-page report, sponsored by Italy’s Musixmatch, highlighted the latest shake-up in the music industry as of 2021. The report used Music & Copyright data and showed that the Big Three labels’ publishing units only held an estimated total market share of 59.9 percent by the end of 2021. Sony Music Publishing remained the market leader with a 24.9 percent share, but indie publishers stole the spotlight with their dominant 27.1 percent share, showing a year-over-year (YoY) increase of 0.8 percent.
Universal Music Publishing Group followed closely with a 23.2 percent share (up 0.2 percent YoY), while Warner Chappell secured third place with an 11.8 percent share (a YoY increase of 0.6 percent). However, it was the rise of the indie publishers that caught everyone’s attention!
The report also provided insights on Kobalt (with a 6.8 percent share, down 0.2 percent YoY) and BMG (with a 6.2 percent share, also down 0.2 percent YoY), who were not considered indie as the category was limited to entities with a market share of five percent or less.
But that’s not all! The report also forecasted a “full recovery” for the publishing industry in 2023, following the impact of the COVID-related downturns in 2021 and 2022. And it’s not just about the music, as the analysis revealed that the publishing sector generated a staggering $13.5 billion in 2021, up from $12 billion in 2020, with $3.5 billion in publisher-direct revenue (up about $700 million YoY) and $10 billion through collective management organizations. That’s some serious revenue!
And here’s the surprise: the report estimated that “the global music publishing market was worth €7.68 billion [$8.43 billion at the present exchange rate] in 2021, against €6.51 billion [$7.15 billion] in 2020,” considering the usual 50/50 split between songwriter and publisher for collective management organizations. Clearly, money talks!
Brace yourselves! The report also revealed that the $3.5 billion in publisher-direct revenue was primarily generated through sync licensing, according to the analysis. This is a staggering statistic, considering that the IFPI only attributed around $630 million to sync on the recorded side for 2022. The RIAA also raised eyebrows, pointing to just $382.5 million in recorded sync income for 2022, using their own definition of synchronization. Talk about significant cash flow!
So, there you have it! Independent publishers are making their mark in the music world, surpassing major music publishing companies and gaining a significant share of the global market. It’s a game-changer, and we can’t wait to see what other twists and turns this industry has in store! Stay tuned for more updates!
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