In the 90s, the CD became a profit machine for the music industry. In 1999, the industry brought in 22 billion dollars, according to the industry organization Ifpi.
But when downloading caught on, profits started to drop. In 2013, revenue bottomed out at $13.1 billion.
Criticism from the artists
Now the streaming services have turned the tide and in recent years the music industry has started to set new records. In 2022, the total revenues ended up at $26.2 billion, and streaming services today account for 67 percent of the music industry’s revenues.
At the same time, many artists testify that the compensation from the streaming giants is too low. In a survey by the IAO, the International Artist Organisation, nearly 90 percent of the interviewed artists in Europe say that they are paid too little.
Can continue to grow
According to Per Sundin, CEO of Pophouse Entertainment and former CEO of Universal Music, the revenue lift of recent years is just the beginning. Globally, there is still a huge amount of people who do not pay for streamed music, he believes:
– Only 11 percent of everyone who has a telephone has a music service, in Sweden that figure is 60 percent. I see great potential in Latin America, Asia and Eastern Europe, says Per Sundin to Ekonomibyrån.
See the latest section of the Financial Services Agency “Rich in music” on SVT Play.