The International Music Summit has presented its customary annual report dedicated to the global electronic music industry. Compiling data from more than 35 different services such as Chartmetric, Beatport, Viberate, IFPI, Nielsen, among others, and through more than 20 interviews with industry leaders, the report indicates that the clear decline in revenues from an industry that relies heavily on live performances.
The 2021 IMS report gives the global electronic music industry a valuation of $ 3.4 billion, a figure drawn largely from software and hardware sales, which rose 23% this year as a result of the shift toward live streaming, along with music sales and streaming, valued at $ 1 billion, artist earnings at approximately $ 300 million, and clubs and festivals, which totaled $ 1 billion.
The valuation of the IMS Report has not been this low for more than a decade, representing a serious decline from the 2020 valuation of $ 7.3 billion and the highest valuation it has ever had, of $ 7.4 billion, in 2016.
Of course, much of that decline occurred in the live entertainment and nightclub sectors. IMS researchers note that “ more than 200 music festivals were canceled or postponed, causing hundreds and thousands of people to lose their jobs and lose $ 3.4 billion in value, down 78% from the previous year.
According to IMS, the share of streaming electronic music consumption – and thus revenue – declined in some key markets, such as the United States (11%) and the United Kingdom (2%). However, it indicates that despite this, revenue from recorded dance music exceeded $ 1 billion, driven by a rapid rise in popularity in Germany and an increase in Canada and the rest of the world.
IMS Business Report
The report also indicates that electronic artists pioneered the creation of collectible NFTs. 76% of all NFT music broadcasts worth $ 50.2 million were issued by electronic artists.
After experiments with NFTs up to and including 2020, electronic artists finally catapulted them to the forefront of the music industry’s attention in early 2021, ” the report states. ” Despite all the buzz around NFTs, we are only just beginning to see their potential.
Despite the not-so-positive notes, the report presents an optimistic outlook: “ Electronic music innovation was not limited to transmitting our sounds to those who could not attend the events. As detailed in this report, our industry seized the opportunity of the pandemic to lead innovation in direct fan engagement (and monetization) in the form of NFT, based on a technology it offers to ultimately help with huge problems. such as the transparency of the payment of rights in streaming services. In addition, we raise record amounts for good causes through livestreams, compilations and by donating our venues to such our communities respond to this crisis.