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The rapidly changing music industry landscape

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While the ongoing vinyl revival is breathing new life into traditional music formats, the online environment and emerging technologies are dramatically changing the landscape of the music industry.Fans today are embracing classical, modern and futuristic ways of consuming music, and combined with the recovery of live events from the pandemic, the outlook for the global music business is bright.

Financial giant Goldman Sachs predicts global music market revenue (including recorded music, music publishing and live events) will surpass $87.6 billion by the end of this year and reach $153 billion by 2030 doing.

The financial institutions’ bullish forecast comes after the International Federation of the Phonographic Industry (IFPI) reported ‘highest earnings levels of the century’ for 2021.

Global Recorded Music Industry Revenue Generated from Physical Sales, Streaming, Downloads, Rights and Synchronizations to Increase from $21.9 Billion in 2020 to $25.9 Billion in 2021, According to IFPI’s Global Music Report 2022 Did. 2021 sees him up from $4.3 billion in 2020, with streaming revenue continuing to dominate, as he surges from $13.6 billion to $16.9 billion.

“In 2021, the global recorded music market grew by 18.5%, significantly higher than the previous year’s growth rate (over 7.2%),” said the IFPI report. “Again, streaming, especially paid subscription streaming, was a key driver of overall growth. Streaming, the dominant revenue format globally, increased from 61.9% in 2020 to It accounts for 65% of recorded music revenue.”

Swedish company Spotify, with 31% market share, is the world’s largest audio streaming platform, and competitors include Apple Music, Amazon Music, YouTube Music, SoundCloud and Deezer. Since its launch in 2006, Spotify has paid over $30 billion in royalties to the music industry.

According to Spotify data, over 50,000 artists generated $10,000 through the streaming platform last year, making over 1,000 artists surpass $1 million for the first time ever.Spotify Founder and CEO Daniel Ek said, “Streaming is not only bringing record revenue to the music industry, but more artists than ever have shared its success. music industry”.

Noting that 25% of all sales went to the top 50 artists of the CD era, Ek adds: You can stand out in the streaming age. ”

YouTube, on the other hand, has a shot at Spotify’s throne. Between July 2021 and June 2022, he paid the music industry more than $6 billion. That’s an increase of $2 billion year over year. His Lyor Cohen, global head of YouTube’s music division, said:

The Middle East and North Africa achieved “exceptional revenue growth” of 35%, emerging as the world’s fastest growing region for recorded music revenue in 2021, according to an IFPI report. Reflecting on the region’s rapid growth, Warner Music Middle East Managing Director Moe Hamzeh said: [digital service provider] Not only due to the number of subscriptions, but also due to the increasing consumption of social media and the growing importance of music on platforms such as TikTok, Snapchat, Instagram Reels, YouTube Shorts, these are now the pillars of people’s music discovery. increase. ”

In fact, in March, short-form video hosting service TikTok launched an “all-in-one platform for marketing and distributing music that empowers new and unknown artists to help develop and build their careers.” Designed SoundOn” launched. Operating in the US, UK, Brazil and Indonesia, SoundOn allows artists to upload their music directly to TikTok and earn royalties. has been evolving at an accelerated pace in recent years, with several UAE companies spearheading the change.

Abu Dhabi-headquartered streaming platform Angami, the first Arab tech company to be listed on the US Stock Exchange, had total revenue of $35.5 million last year, up 16% from 2020. The company continues to report revenue for the first half of 2022 for him of $21.1 million, up 29% year-on-year.

Additionally, Anghami has launched in partnership with Sony Music Middle East. Last year, Vibe Music Arabia record label. Angami also acquired event and concert company Spotlight Events in July, with the aim of evolving from a music streaming platform to an entertainment platform, with the acquisition unlocking synergies and opportunities between the physical and digital worlds. claimed to be

“While Spotlight Events provides a stage for artists to perform and reach audiences offline, Anghami’s technology provides access to exclusive concerts through its live video streaming capabilities and through AR and VR. We bridge the gap between the offline and online worlds by creating an immersive experience,” said Angami.
statement.

But as musicians demand reforms and fairer compensation in the streaming economy, Spotify pays artists an average of $0.0033 per stream. His two companies in the UAE are one of those determined to use emerging technologies to disrupt the status quo.

Talal Alafghani, co-founder and COO of NIFTY Souq, the first and largest NFT marketplace in the MENA region, believes that NFTs (non-fungible tokens) have the potential to revolutionize the music industry. increase. Aoki calls himself a “futurist,” and earlier this year he said he made more money from NFTs than he did in a decade of musical progress.

The purpose of NIFTY Souq is to use Ethereum and Polygon blockchains and smart contracts to build bridges between artists, musicians and blockchains, support the growth of native crypto NFT artists, and bring NFTs on the platform. To support artists by providing low mining costs to all creators who launch. Affordable pricing.

“In today’s music industry, many artists are tied up with intermediaries such as music labels and streaming platforms,” explains Alafghani. “NFTs allow creators to have complete control and ownership of their work. They can publish their music independently and avoid middlemen. This new technology allows artists to They’re taking back full ownership of their work, allowing them to sell their music NFTs directly to fans and earn revenue from secondary market resales.

“The incentives for artists to publish and sell their work using NFTs are high, and the industry is already moving in that direction,” adds Alafghani. “At this pace, streaming services expect him to no longer dominate the music industry by 2030.”

NIFTY Souq, which launched last year as a marketplace and auction platform for creating, selling and buying NFTs, recently secured its first round of seed investment of $1.5 million.

Described as a “solution to a common problem across the music industry,” AudioSwim, based in the United Arab Emirates, is an NFT music ecosystem and digital music distribution platform that allows artists and fans to share NFTs and music royalties. We make it available for sale worldwide. The company’s mission to provide “digital services for forward-thinking musicians” is to “use the latest technology to help artists create more freely.”

AudioSwim allows fans to invest in an artist at the grassroots level by purchasing a percentage of future royalties from specific releases, with a minimum buy-in determined by the artist’s sales history. If the song is commercially successful, fans will receive a portion of the royalties proportional to their initial investment.

Carter has bold ambitions for 2030. “We aim to be the number one digital music distribution company and music loyalty platform on the planet,” says Carter. “We want to make NFT more mainstream through our streaming platform, integrating the metaverse, virtual reality and augmented reality into the way artists interact with their fans, making online and offline seamless. Ultimately, by 2030, we will be recognized as the leading digital music community to take artists’ careers to the next level.”

In fact, blockchain, AI, the Metaverse, gaming platforms, and other emerging Web3 disruptors are facilitating more and more opportunities for fans to engage with music in new and increasingly diverse ways, creating the next big thing in the music business. A big upheaval is definitely on the horizon.

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