The IMS Business Report 2021 is published – and it’s a story of innovation emerging from devastation. Commissioned by the International Music Summit and compiled by data analyst David Boyle, the annual study provides vital insights into the electronic music industry.
With Covid-19’s devastating impact on the scene, the latest IMS Business Report was never going to paint a rosy picture. And sure enough, the pandemic slashed the global value of the electronic music industry by more than 50%. But there are tremendous successes too. The IMS Business Report identifies huge opportunities for the industry to mobilise, regrow and capitalise upon.
“Faced with adversity, our industry found new ways to do what it does best – make people dance,” reads the report. “As with any industry that relies on in-person events, our market was down in 2020. But with growth in recorded music revenues and investments in innovation, we are well positioned for growth.”
Here are 12 key takeaways from the IMS Business Report 2021…
1. Global Value
In a year when clubs and festivals were decimated by Covid-19, the global value of the electronic music industry fell by 54% to $3.4 billion in 2020. After 10 years of sustained growth, the pandemic reset the sector to levels last recorded over a decade ago. It’s a predictable drop following a year of lockdowns and a crippled live sector.
2. Market Share
The global recorded music market grew by 7% to $22 billion. However, electronic music’s market share declined by 11% in the US and 2% in the UK.
3. Earnings
Not surprisingly, DJs and artists’ earnings plummeted. The IMS Business Report 2021 estimates the value of DJ and artists’ earnings dropped from $1.1 billion in 2019 to $0.3 billion last year.
4. Downloads
While the downloads market declined by 16%, Beatport bucked the trend. The online music store favoured by DJs achieved 33% growth in 2020.
5. Best-Selling Genres
Techno emerged as Beatport’s best-selling genre for the fifth year running. House climbed to the second most popular spot, followed by tech-house and drum & bass.
6. Back to Wax
The world traded vinyl. Discogs’ vinyl sales spiked by 41%, with almost 12 million records sold through the buy-and-sell online marketplace. A promo copy of Scaramanga Silk’s Choose Your Weapon changed hands for a whopping $41,000. The record is now the most expensive vinyl ever sold on Discogs.
7. Festival Fix
More than 200 electronic music festivals were cancelled or postponed. The global value of festivals and clubs dropped from $4.4 billion in 2019 to $1 billion last year. But demand for events is bigger than ever. Skiddle data reveals the value of tickets sold in March 2021 was more than the whole of 2020 combined. Get ready for the roaring ’20s!
8. Home DJ Boom
The DJ software and hardware sector experienced record growth as the world found new ways to entertain itself. Sales rocketed by 23% to $1.1 billion.
9. Live Steaming Takes Off
With clubs closed and festivals cancelled, the electronic music industry finally embraced live streaming. Live streaming was the huge success story of 2020, with Twitch registering 1.2 million new followers for the top electronic music accounts. Lockdown winners Defected pulled in 140,000 more YouTube subscribers than expected. Beatport’s streaming channel also exceeded projected figures by securing 106,000 additional fans.
10. Digital Collectibles
Electronic artists pioneered NTFs for digital collectibles. The IMS Business Report 2021 claims electronic artists issued 76% of all music NFTs – worth $50.2 million.
11. A Growing Giant
Gaming is more than 20 times the size of the electronic music industry, opening up a world of opportunities. With games considered “the new venues of tomorrow”, artists went from soundtracking games to starring in them. Richie Hawtin and Deadmau5 launched gaming venture Pixelynx as a “portal into the metaverse” for electronic artists. And Rockstar Games teamed up with CircoLoco to launch a new label.
12. Generous Fans
Electronic music fans stepped up to help others. Five live streams – David Guetta’s United at Home, Boiler Room Isolation series, Beatport ReConnect, United We Stream and Defected’s Virtual Festival – raised over $6.5 million for charity.
Main photo: Antoine Julien/Unsplash
Also read: Epson Survey Predicts Roaring ’20s Vibe as Live Events Bounce Back
