But a swift bounce-back is also predicted as new markets open up worldwide
Ibiza's International Music Summit has published its annual report into the state of the global dance/electronic music industry and, as was only to be expected thanks to the coronavirus pandemic, it makes for pretty grim reading in places. But it's not all bad news!
On the downside:
• The total value of the global dance/electronic music industry in 2020 is expected to be $3.3BN – a 56% drop from 2019's figure of $7.3BN
• Clubs and festivals are expected to take a 75% hit to their earnings this year
• DJ and artist incomes are also predicted to fall significantly, from $1.1BN in 2019 to just $0.4BN in 2020.
• Dance/electronic music is losing market share in the UK to hip-hop and rap. The latter represented 21.5% of total sales in 2019, compared to dance music's 9.1%; in 2015, dance music made up 15.4% of total sales while hip-hop/rap represented just 11%.
• Dance music over-performs in the streaming world, with 90% of electronic music being "consumed" (bleurgh!) this way in 2019 compared to just 68% of rock music. Given that streaming now represents nearly 80% of total music revenues, that's a good thing for our industry
• In the US, dance/electronic music's total share of sales revenues across all genres was 3.6% in 2019 – that's in-line with the average over the past five years, but a big improvement on the 3.0% figure for 2019
• Dance music market share is at an all-time high in Germany at 7.3%.
• Live streams have surged hugely in popularity during the pandemic, generating some much-needed revenue for the industry as well as raising money for good causes. This sector is predicted to shrink signficantly once nightclubs reopen, but not disappear entirely – thus providing artists, labels and festivals with a new potential revenue stream.
• Worldwide, there are markets that are now very electronic music-friendly that weren't 10 or 20 years ago, such as Mexico, where dance music is now the fifth most popular genre (after pop, rock, rap/hip-hop and "oldies"); there are also markets such as India that essentially still represent virgin territory for electronic music. Both offer great opportunities for industry growth.
So while the report does paint something of a woeful picture of the current state of play – as was only to be expected – there are also definite reasons to be optimistic!
The full report, which was authored by Kevin Watson [pictured], can be downloaded from International Music Summit's own website.
Pic: James Chapman