Business report

12 Key Findings – Billboard

Today (April 27) in Ibiza, the IMS Annual Business Report was presented as part of the IMS Ibiza Conference, a long-standing gathering of the global dance music industry. Taking place on the shores of the White Isle at the stylish Destino Pacha Ibiza Resort, the conference is going live for the first time since 2019, with 2020 and 2021 happening virtually due to the pandemic.

As the weather is overcast in Ibiza today, signs of life on the island – where clubs are beginning to reopen after two largely inactive and economically devastating years – parallel the Business Report, which demonstrates the significant rebound in the dance industry since its globalization. the valuation hit its lowest level in ten years in 2021 amid the pandemic.

For the second consecutive year, the report (available for download here complete here) was prepared by David Boyle, director of London-based research, data and analytics firm Audience Strategies. The report is based on facts and figures provided from across the industry, including via more than 30 interviews with key figures and analysis of over 40 datasets, many of which are exclusive to IMS.

“The industry is in turmoil,” Boyle says in the report. “I’ve heard tons of excitement in my interviews with artists, promoters, agents and labels over the past month. Partly because, as predicted last year, electronic music is back. Led by market share gains in the UK and Germany, we saw growth in 16 countries as the joy and energy of electronic music accompanies the global post-pandemic recovery.

The IMS report, presented this year by the company Web3 PIXELYNX with the support of the Viberate analysis platform, is the cornerstone of IMS Ibiza. The conference continues today through Friday (April 29) with speakers, conversations, and workshops focusing on the Metaverse, Climate Change, War in Ukraine, and other hot topics from the industry.

Here are 12 key findings from the 2022 report:

1. The dance and electronic music market grew strongly in 2021

This year’s report values ​​the total industry at $6 billion, a 71% increase over last year. This number, however, falls short of pre-pandemic industry levels, with the number still down 20% ($1.5 billion) from 2019.

2. The recorded electronic music market continued to grow

Electronic digital download store Beatport achieved 13% growth, despite a download market down 15%. In terms of the popularity of the genre on the platform, tech house overtook techno in 2021 as the top-selling genre after holding second place in recent years. House continued to rank highly, maintaining its position as the third most popular genre in 2021. These genres were followed by melodic house and techno and drum & bass.

3. The The dance/electronic market share in the United States is stable

In the US, dance/electronic music accounts for 3.3% of total recorded music volume (a 3% increase over last year). The genre hit a US high of 4% in 2016, at the height of the EDM boom. . As predicted in last year’s “IMS report”, hip-hop’s market share in the United States fell in 2021, reaching 27.7% after reaching 28.2% in 2020.

4. Streaming was up across all music genres

Diffusion growth accelerated in 2021, up 24% year-on-year, compared to 19% growth in 2019-20 and 22% in 2018-19. This growth was powered by existing platforms as well as new platforms and new monetization of existing platforms including TikTok, Facebook, Instagram, Peloton, Apple Fitness, Amazon Music Unlimited on Echo. Additionally, for the first time in 20 years, physical sales returned to growth in 2021, with vinyl sales up 51% and CD sales up 9%.

5. Electronic festivals and clubs rebounded in 2021, but there were setbacks

Ongoing pandemic-related restrictions meant record consumer demand for live shows could not be met. Events that were possible were often hampered by challenges with a myriad of challenges relating to audiences, artists, staff and vendors.

6. Web3 is big business – and a big moneymaker – in the dance world

Web3, Metaverse, NFT, Blockchain, DAO and technology play a key role in the report, showing the adoption of new ways for artists and brands to build monetizable relationships directly with fans. Electronic artists were the pioneers of NFTs for digital collectibles, with 64% of all identified music NFTs – a number worth $55.4 million – issued by electronic artists.

7. Streaming (still) doesn’t pay

The report found that just 1,650 electronic artists – less than 1.2% of the total number of acts in the scene – earn more than $65,000 a year from their music streaming.

8. But artists are earning income on live shows again

Revenues for DJs and performers were up $400 million — or 111% — from 2020, largely due to the return of live music and shows in 2021.

9. Progress has been made on diversity, but there is still a long way to go

The report found that the representation and demand for people of color in the “DJ Mag Top 100” – an annual ranking of the world’s 100 most popular electronic artists – increased in 2021. However, these several years of slow growth of demand for female representation in the Top 100 stalled in 2021, with the public voting for 12 female DJs in the Top 100 DJs in 2021, down one from 2020. This is the first drop in the number of female artists on the list since 2016.

Moreover, according to electronic music association Survey of gender diversity in the electronic music industry, oOnly 16% of workplaces in the dance industry are predominantly female. Nearly half of the survey sample work in organizations with between 25 and 50 percent women. 22% had leadership teams with less than 1 in 4 women. Moreover, dAlthough women in the survey show a higher level of education than men, women were three times less likely than men to be at managerial level.

Moreover, while tthere was a significant spike in black artist bookings in the US and France at the height of the 2020 Minneapolis racial uprisingwhich echoed in France with protests across the country, this peak was not supported.

10. Games are born electronic music, but bridges are being made

Gaming is more than 20 times the size of the electronic music industry and growing rapidly. But the music industry’s crossover with the gaming space continues: Sony has invested $250 million in Fortnite and has just invested $1 billion in Epic games. Warner has eight figures invested in the Roblox metaverse platform as well as a number of partnerships with digital experience companies. These investments continue to bring the worlds of digital and physical entertainment closer together.

11. The value of DJ software and hardware increased by 14%

The end of the home DJ boom in 2020 was offset by the return to live, although this was affected by chip shortages and global shipping issues.

12. Education is big business – and part of giving back

IMS had 138 electronic music education providers, with Electronic Music Label Toolroom now boasting 7,500 alumni worldwide, making music trained in their DJ academy. Such educational facets reflect a scene’s desire to give back, with the scene also stepping up fundraising compilations to support Ukraine and react to wider world events. Namely, the theme for this year’s IMS conference is “Pursuing a Goal,” with a focus on discussions on climate change, Ukraine, mental health and more.