Music industry

2022

Russia paid record low royalties to foreign music authors

In 2022, foreign music authors received record low royalties in Russia - 20.7 million rubles. In 2021, this figure was measured at 131.4 million rubles. Such data in October 2023, with reference to the Ministry of Culture of the Russian Federation, were disclosed by the Russian Author's Society (RAO), in favor of which all establishments in which music sounds in the background (bars, restaurants, clubs, etc.), as well as TV channels, radio stations and cinemas.

As RBC writes with reference to this study, in 2022, TV channels, radio stations, cinemas and establishments where music sounded, expelled organizations in favor of all authors of works - both Russian and foreign - 3.2 billion rubles. This is slightly less than in 2021, when fees reached 3.3 billion rubles.

Foreign music authors received record low royalties - 20.7 million rubles

Of this amount, the total payments of RAO to all authors amounted to about 2 billion rubles in 2022 (the amount of total fees may not coincide with the amount of actual payments). The RAO explained to the publication that the lower the fees, the less the payment.

This is a direct dependence - if fees are reduced, then the amount of remuneration to be distributed also decreases, they explain in society. In addition, the amount of payments directly depends on the amount of remuneration that RAO itself distributes. If less remuneration is distributed than for the previous period, then it will also be paid less, - said the representative of the organization.

RAO also noted an increase in interest in domestic content by about 30%.

The organizer of the international forum of the music industry Colisium, Sergei Babich, attributes the decrease in payments to the fact that since the coronavirus pandemic COVID-19 Russia , almost no foreign artists have come to, as well as the lack of technical ability to transfer money abroad.^[1]

Global sales growth of 9% to $26.2 billion

At the end of 2022, the volume of the global recorded music market reached $26.2 billion. This is approximately 9% more than the result for the previous year. Such data are given in a study by the International Federation of Phonogram Producers (IFPI), the results of which were published on March 21, 2023.

The report said cash receipts from subscription audio streaming increased year-on-year by 10.3% to $12.7 billion. As of the end of 2022, there were 589 million users of paid subscription services globally. The total volume of streaming (including both paid subscriptions and supported by advertising) grew by 11.5% and reached $17.5 billion. This corresponds to approximately 67% of the global market.

Revenue from physical media rose 4%. At the same time, as noted in the report, revenue from execution rights increased by 8.6% and returned to the pre-pandemic level.

In 2022, income from recorded music grew in all regions of the world. Asia Thus, it showed an increase in sales by 15.4%, while its largest market, Japan showed an increase of 5.4%. China The increase was recorded at the level of 28.4%. In general, Asia accounts for almost half of the world's income from physical carriers (49.8%). Revenues in the To Europe second largest recording region in the world increased by 7.5%: while growth was recorded in the three largest markets in the region - in (+ Britain 5.4%), (+ Germany 2.2%) and (+ France 7.7%). In Latin America, there is an increase in sales of 25.9%. The region and - USA Canada the largest in the world in terms of revenue - rose 5% in 2022. In particular, in the United States, the industry showed an increase of 4.8%, for the first time exceeding $10 billion.

Global Music Report 2023

The growth of income of music authors in the world by 26% to 12.1 billion euros

The total income of music authors and composers in the world in 2022 reached 12.1 billion euros, which is 26.7% more than a year earlier. Such data are given in the report of the International Confederation of Societies of Authors and Composers (CISAC) published in October 2023. The study takes into account the admission to the confederation of 225 copyright societies in 116 countries of the world.

According to the authors of the report, whose data is provided by Kommersant, the income of music authors increased by 19.8% compared to 2019, when there was no COVID-19 coronavirus pandemic yet.

The total income of music authors and composers in the world in 2022 reached 12.1 billion euros

Everything that we see now, after COVID-19 and the difficult situation in the economy, is a new challenge of an existential nature, I mean the growing influence of artificial intelligence. AI will radically change the world of authors and the entire creative industry. It will require attention from the international community and representatives of the entire creative industry, - said CISAC President Bjorn Ulvaeus - musician, performer and producer, former member of the ABBA group.

The income of authors and composers has developed from three sources - digital sales and streaming, broadcasts (radio and TV) and concert performances. In 2022, digital royalty fees rose by almost a third to 4.2 billion euros. At the same time, "live" performances (concerts, exhibitions, etc.) brought copyright holders about 2.68 billion euros.

The highest growth was shown by the dynamics of income from concerts and other live performances, which last year began to actively take place around the world after the lifting of coronavirus restrictions. The growth compared to the previous year amounted to 69.9% - up to 2.7 billion euros. CISAC notes that "after almost three years of shocks due to the COVID-19 pandemic, the dynamics of copyright revenue returns to normal progressive growth during each subsequent year."

According to the report of the International Federation of the Phonographic Industry (IFPI,), revenue growth from the sale of recorded music in the world slowed down sharply in 2022, but still grew by 9% at the end of the year. In absolute terms, we are talking about a figure of $26.2 billion.^[2]

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