The Global Value of Music Copyright Surpasses Cinema Box Office Revenues

The global value of music copyright exceeded that of cinema box office revenues in the year 2023. A report by Will Page, the former chief economist at Spotify and PRS for Music, unveiled that the combined income from recorded music, publishing, and royalties collected by CMOs reached $45.5 billion. This surpasses the total global box office earnings of $33.2 billion, making music 38% more valuable than cinema, compared to 33% in 2019.

Key Findings

Page highlighted that the global value of music copyright has been increasing by 11% annually since 2021, with projections showing a potential doubling from $25 billion in 2014 by the next year.

“It’s boom time,” Page emphasized, noting the significant growth in the music industry.

Distribution Breakdown

Out of the total $45.5 billion, 63% went to labels and artists, while the remaining 37% was allocated to songwriters, publishers, and their CMOs. This distribution remained consistent with the previous year.

Revenue Breakdown

The revenue breakdown included $28.5 billion in recorded revenues, $12.9 billion in CMO collections, and $4.2 billion in direct publisher income.

Industry Shifts

Page pointed out that streaming played a significant role in the 12% growth of label income, with physical formats also showing notable growth, particularly in vinyl sales.

Vinyl sales are expected to surpass CDs globally in the near future.

Changing Landscape

CMOs now derive more value from live performances than general licensing for public performances. Additionally, digital collections have overtaken broadcast and radio royalties.

Page reflected on the evolution of the music industry, noting the unexpected rise of music’s value over cinema in recent years.

Industry Challenges

Former Spotify licensing head raised concerns about the platform’s subscription scheme impacting royalties for publishers and songwriters. In response, initiatives like James Blake’s new streaming service aim to address unfair royalty rates.

For more details, refer to Page’s full report.

Follow Meena Sears, Mixmag’s Digital Intern, on Instagram for more updates.

FAQs

Q: What contributed to the increase in music copyright value?

A: The growth in streaming and physical formats, particularly vinyl sales, played a crucial role in boosting the value of music copyright.

Q: How are royalties distributed among stakeholders in the music industry?

A: Labels and artists receive 63% of the total revenue, while songwriters, publishers, and CMOs collectively account for the remaining 37%.

Credit: mixmag.net