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The pandemic has affected the music and live entertainment industries in different ways.
Content that can be consumed at home increases revenue, while the type of content typically consumed on the go (broadcast) or face-to-face has a negative impact.
As things return to normal as much as possible post-pandemic, VIP+ delves into the entire music industry—podcasting, radio, streaming and live events—to assess key trends post-COVID-19.
Podcast and digital media revenue continues to grow
Podcasting and digital media continued their growth trend, seeing year-over-year growth every time the company reported. A key issue here is that many of the major podcast providers currently do not report revenue from media, and analysts are able to gather indicative trends, but are far from a complete picture of the industry.
Most Popular Podcast Source, Based on “Demographics” Consumer Surveys by Consumer Insights Experts for VIP+ GetWizer, is YouTube, followed by Spotify, Apple and Pandora. Notably, the average podcast listener made up half of the survey sample, and the other half said they did not listen to podcasts. It may be that the market is starting to cap and domestic growth is slowing in general.
Broadcasting is at a crossroads
First, good news. Two-fifths of US consumers aged 15 or older say they enjoy listening to the radio. But a similar percentage said streaming services were better than radio, and one in 10 were extremely pessimistic about the future of radio. These respondents are on the younger side, suggesting that radio faces chronic problems in acquiring new listeners to maintain audience numbers.
For now, however, broadcasting retains its status as a cash cow, with revenues higher than major players Audacy, Cumulus Media, and iHeartMedia will earn in 2022.Expanding into digital media and podcasting is a way for these companies to look to future-proof their businesses, and iHeart has also launched Multiple FAST channels Stand in front of audiences who consume media in non-traditional broadcast formats.
Satellite radio revenues are growing
Satellite radio is another form of growth, at least financially. SiriusXM earned $1.7 billion in the second quarter of 2022, up 12% from levels two years ago. The satellite radio operator has made a concerted effort to expand its audience beyond cars to general streaming.
While current subscriber levels are about 200,000 fewer than in the second quarter of 2020, this can be partly explained by the ongoing auto shortage in the U.S. (SiriusXM is packaged in many new vehicles.) Expected synergies with Liberty Media company Live Nation, satellite Radio may finally surprise many with its longevity.
Streaming and digital music are still growing
In GetWizer’s VIP+ survey, nearly half of Americans said they value listening to music without ads, a premium offered by streaming music services. Similar ratios said it was important to be able to choose what they listened to.
This is reflected in the growth in revenue from streaming music for the major music labels. Streaming revenue for Sony Music, Universal Music Group and Warner Music Group totaled $3.12 billion in April, May and June, up $1 billion from the same period in 2020.
This is reflected in the large number of reporting users who share subscriber and monthly average user data for a handful of streaming services. With the likes of Amazon and Apple not sharing information on their music services, we’re far from the full picture, but the growth in record revenue from the format shows that all major services are being heavily used by consumers.
travel is back
Live events have been on the rise since the second quarter of last year, but have rebounded this spring. Live Nation reported that more than 8,000 events took place in the U.S. and Canada during the period, with the summer months expected to grow.
In the VIP+/GetWizer “Demographic Divide” study, one in five Americans said attending live concerts is important to them, which is reflected in the growth of live events.Interestingly, about 1 in 20 said virtual concerts were better than live concerts – for something like iHeartLand by iHeartRadio Fortnite’s entertainment space.
Based on data from the VIP+/GetWizer study, it is conceivable that as the worst of the pandemic has passed, all forms of self-reported in-person event attendance have increased compared to a year ago.
pent-up demand for live events has seen revenue soar in 2022, with Live Nation reporting concert and festival revenue of $3.6 billion in the second quarter, up $3.3 billion from a year earlier.
Artists also saw increased revenue from tours, with both UMG and WMG reporting merchandise and other revenue, a significant portion of which came from artist tours. Merchandise sales increased by $124 million, or 62%, compared to last year. In a period of high inflation, this shows the current inelastic demand for looking at artists, which bodes well for the artists themselves as well as for the record labels and travel agencies.
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