Fascinating Music Listening Report Everyone Should Read

It's prudent for investors to pay attention to industry trends in the markets they invest in, music royalty investing is no different. IFPI is a group that focuses on the recorded music industry. The put out many different reports about the industry throughout the year.


One of the reports they send out is the Engaging with Music report which "explores the ways that people listen to, discover, and engage with music around the world. It is the largest music-focused consumer study worldwide." It's an absolutely fascinating report that I encourage you to read if you are thinking about investing in the music industry.





As I was reading through this report there were a few items that really jumped out at me that I wanted to share.


  • 9% of listening takes place via purchased music (CDs, Vinyl, DVDs and downloads). This number is a lot higher than I anticipated. Purchase music increases the mechanical royalties paid out, and mechanical royalty percentages are set to increase, which bodes well for investors. Worth calling out that 12% of those surveyed purchased a CD in the last month!


  • Short form video apps such as TikTok make up 11% of all listening. Considering this from of listening didn't even exist a decade ago, this is a staggering piece of the pie. I know my kids here a lot of music from these apps so this aligned with my own personal small sample size.

  • Radio still exists - coming in at 16% of listening. Would be interesting to see the mix between satellite, terrestrial and internet radio broken down, but still a high number overall. I can't remember the last time I listened to terrestrial radio but I will listen to Sirius in my car at least.


  • Live came in at an underwhelming 2%. The pandemic obviously impacted this number greatly. Will be interested to see how this grows in 2022. I know I've been going to more concerts in 2022 than I did since the start of the pandemic.


  • Decades made up 3 of the top 10 Genres. 90s came in at 3rd, 80s came in a 4th and 70s came in a 9th. I would wager that 00s will be showing up on this list in the coming years. Time to search for those Outkast and Coldplay royalty investments.


  • Video Game Soundtracks in Canada? Okay, I don't get it but that showed up as a popular genre in Canada. I'm apparently too old to get this.


  • Mexico Likes It's Paid Streaming. Mexico spent the most time listening to music through paid subscription streaming of any country in the report. Going to keep this in mind and see if there are any streaming heavy Mexican artist investments available.





I encourage everyone to read through this report and see what jumps out to them. This is an exciting industry overall, and one that I personally am happy to keep adding to my overall portfolio of investments. I can't wait to see what trends emerge as we get on the other side of the pandemic. One thing is for sure they, people find enjoyment and happiness in music (87% of the respondents said so).



 

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As always this blog is meant for entertainment. I'm not a financial advisor in any way, shape or form. Anything I suggest here will need your own due diligence.


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