The Beat, September 2024

Sent: 12 September 2024

The past month of news, trends and reports has revealed some more indications of the Music and Entertainment industries being in flux. Over half of TikTok’s top summer songs were from independent artists, and AI could reshape 23% of music revenue by 2028. 

From the rise of TikTok stars to the impact of AI on music creation, we’re diving deep into the latest industry reports to uncover what’s next. Get ready to discover the future of the Music Industry and the latest in Entertainment.

Unpacking The Latest Music Industry Reports, Pt.1: AI, Streaming And Social Media Are Reshaping the Industry

TL;DR: The music industry is being transformed by AI, streaming, and social media. AI is changing music creation, streaming is growing, and social media democratizing music discovery making it easier for independent artists to find fans.

Recent music industry reports shed light on several key trends shaping the future of music: the impact of AI on music creation and revenue, the continued dominance of music streaming services, and the growing importance of social media platforms like TikTok for artist discovery.

A report by APRA AMCOS reveals that while AI presents both opportunities and challenges for music creators, with a potential 23% of revenues at risk by 2028 due to generative AI technologies, it also opens up new avenues for creativity. The report highlights that a significant portion of APRA AMCOS members are already embracing AI in their creative process, and the AI music sector is projected to experience substantial growth in the coming years.

Meanwhile, Kantar’s research underscores the continued expansion of music streaming services, with YouTube Music solidifying its position as a leader in adoption in Q2 2024. The research also indicates a significant untapped market for music streaming, with 85% of non-streamers expressing interest in listening to music online.

Finally, TikTok’s summer song charts demonstrate the power of social media platforms in propelling independent artists to global stardom, with over half of the top songs being independently distributed. This highlights the democratization of music discovery and the potential for artists to reach massive audiences without traditional label support.

These trends together paint a picture of a music industry in flux, where technological advancements like AI and the shifting dynamics of music consumption and discovery are creating both challenges and opportunities for artists and industry stakeholders alike.

Unpacking The Latest Music Industry Reports, Pt.2 : Streaming And Live Music Are Driving Industry Growth

TL;DR: Publishing revenues are up thanks to streaming, and live music is thriving despite higher ticket prices.

Midia Research’s research showed impressive growth in global music publishing revenues, reaching $10.1 billion in 2023 and surpassing histrical annual growth in record label revenues. The future looks even brighter, with streaming becoming the dominant source of publishing revenue, set to almost double by 2031. Additionally, subscription TV streaming and rising live performance income are contributing to this remarkable growth.

The UK live music industry is also thriving, as Live’s annual report shows a market value of £6.1 billion in 2023, a substantial increase from both the previous year and pre-pandemic levels. Despite rising ticket prices due to increased costs for organizers, the growth exceeded inflation, showcasing the strong demand for live events and consumer willingness to spend on entertainment experiences.

African Content Is Going Global: A New Era of Recognition

TL;DR: African content is gaining global attention, boosted by popular music genres and increased visibility at international events. 

African content is experiencing a global breakthrough, with more African TV series and movies reaching international audiences than ever before. This trend is highlighted by the success of African music genres like Afrobeats and Amapiano, along with a record number of African films showcased at Cannes 2023.

MultiChoice Group, a major player in African entertainment, is contributing to this growth by expanding its content lineup and forming strategic partnerships like the one with NBCUniversal. While emphasizing global reach, the company remains committed to creating content for African audiences, as evidenced by the popularity of local shows on its streaming platform Showmax.

Brazil’s Music Streaming Boom Outpaces The US With 21% Growth In H1 2024

Brazil’s recorded music market grew by 21% in the first half of 2024, outpacing the US market which only saw a 4% growth. Streaming dominates the Brazilian market, making up 99% of revenues. Subscription streaming grew by 28.4% while ad-supported streaming grew by 6.6%.

Roblox Makes Play for Music Industry with New Discovery Features and Charts

Roblox is expanding its music offerings, aiming to become a major platform for music discovery. It recently announced a partnership with DistroKid, allowing independent artists to share their music with Roblox’s massive user base.

They also launched features like ‘What’s Playing’ and music charts to enhance music discovery within the platform. Major music labels are already active on Roblox, and the platform plans to expand its music catalog further. DistroKid, a major distributor of independent music, sees this as a significant opportunity for artists.

Challenges and Opportunities In A New Streaming Era

In the wake of what Variety dubs the ‘death of peak TV, the SVOD bundle boom and the rise of ad-supported streaming‘, the streaming landscape has shifted from subscriber acquisition to ad revenue, partnerships, and a slowdown in content production. While the “streaming wars” are over, challenges remain, especially in maintaining subscriber engagement.

Read the full report here.

• The Sound of Gaming: Why Music Licensing is a Major Challenge for Developers and Artists alike.

• YouTube is launching a pilot program in early 2025 to help artists detect and manage AI-generated content that uses their voices or faces.

• NVIDIA has released a software-defined, AI-enabled platform called NVIDIA Holoscan for Media for ‘live media and video pipelines’.

• ‘Dynamic pricing’ has been used for years but fans’ outrage after Oasis’s use of it has heightened scrutiny of Ticketmaster’s model.

First time reading? Want more every month? Sign up here.