Music Distribution Services Market

The global music distribution services market size was valued at $911.87 million in 2020, and is projected to reach at $1683.08 million by 2030, growing at a CAGR of 6.2% from 2020 to 2030.

The music industry has been hit hard by pandemic with sudden decline in live performance revenues. However, the music distribution service industry is integrating new ways to monetize music consumption and innovative models to tackle negative impact of the pandemic. For instance, the trend of online music distribution services during COVID-19 pandemic is anticipated to create lucrative growth opportunities for the market.

Music distribution is the process of making recorded music accessible to the general public in both physical and digital formats. Distribution was traditionally done through record companies and the deals it strikes with various genres outlets. Although the digital revolution has drastically altered this approach, distributors continue to play an important role in making music available to the public in downloaded and streaming formats. However, it can be difficult, some musicians have succeeded in controlling of their own music distribution. Furthermore, more musicians discover new ways to release their music independently, which would provide the numerous opportunities for the market growth in the upcoming year.

On the basis of end user, the record companies segment dominated the overall music distribution service industry in 2020, and is expected to continue this trend throughout the forecast period. This is attributed to increase in the adoption of music distribution service by procedure to gain strategic and a competitive advantage over their competitors. Customers uses music distribution service to discover new insights on record company’s diverse data, including historical and recent data. This technology is suitable for running algorithms and analysis across a large set of data to find relevant relationships, entities, and insights.

Furthermore, music distribution service continues to become mainstream, as more record companies are considering the extraction capabilities for getting valuable insights from big data, which is opportunistic for the music distribution services market growth. However, the independent music producer segment is expected to grow the most, and this trend is expected to continue during the forecast period. The independent music producer are shifting their focus to a digital platform by using online music distribution service solutions for a number of uses, and it is helping them to become more productive, smarter, and efficient.

Depending on the deployment model, the on-premise segment captured the largest share in 2020, and is expected to continue this trend during the forecast period. This is attributed to numerous advantages offered by this on-premise deployment such as a high level of data security and safety. However, the cloud segment is expected to witness the highest growth in the upcoming years, due to the fact that cloud deployment requires no investment in IT infrastructure, as all data is stored on cloud server, which increases the demand for music distribution service software in small- & medium-scale organizations. 

The report focuses on the growth prospects, restraints, and music distribution services market analysis. The study uses Porter’s five forces analysis of the music distribution service industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, the threat of new entrants, the threat of substitutes, and bargaining power of buyers on the music distribution services market trends.

Segment Review

The global music distribution service industry  is segmented into type, deployment mode, end user, and region. By type, the market is bifurcated into artist-to-fan and distributor to digital retailers. Depending on deployment, it is segregated into on-premise and cloud. On the basis of end user, it is fragmented into record companies and independent music producer.. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA

Impact of COVID-19 on the Music Distribution Services Market.

On the basis of music distribution services market forecast market was valued at $975.88 million in 2021, and is projected to reach $1683.08 million by 2030, growing at a CAGR of 6.2% from 2020 to 2030. The global COVID-19 pandemic has drastically affected businesses across the world. The music industry has been hit hard by coronavirus with live performance revenue the biggest casualty. A six-month shutdown is estimated to cost the industry more than $10 billion in sponsorships, with longer delays being even more devastating. The music distribution service industry is fighting back with new ways to monetize music consumption and innovative models. The crisis is likely to accelerate underlying trends in the music industry, based on the importance of streaming, which has grown from 9% to 47% of total industry revenues in just six years. It has affected positively on the adoption of online music distribution service due to lockdown imposed by governments of different countries. On the distribution side, there is a growing list of artists delaying releases to later in the year. In part this is due to the inability to use tours to promote new albums, and live music in general has been dramatically affected. An extensive list of major concerts and events have been cancelled. During COVID-19 pandemic streaming and distribution platforms have witnessed increased social engagement, subscriptions, and artist activity through their COVID-19 innovations. This factor will boosts the music distribution services market.

Top Impacting Factors    

Factors such as increase in the number of active music listeners around the globe and rise in demand for the adoption of cross-border and different varieties of music globally impact the growth of the music distribution services market. In addition, integration of virtual reality influences the market growth. Furthermore, the market growth is affected by data leakage and chances of piracy during online music distribution. However, each of these factors is anticipated to have a definite impact on the growth of the global music distribution services market during the forecast period. 

Rise in the number of active music listener around the globe

In Europe, people deliberately listen to about 18 hours of music per week. Owing to increase in penetration of internet and the mobility of access to music via portable devices, music has become a ubiquitous companion of many individuals, especially adolescents. The number of active music listeners has been constantly rising from past few years and also the latest advancements in social media increase the demand of verity of music. The digital medium has become an essential element of the music distributer for publishers, advertisers, and listeners alike. For instance, in April 2021, an estimated 68% of the U.S. population, which is aged more than 12 years, focused on listening songs on the basis of monthly subscription. The average time spent listening weekly is 16 hours and 14 minutes, a significant increase from 2020’s 15 hours and 12 minutes.

Key Benefits For Stakeholders

• The study provides an in-depth analysis of the music distribution services market share along with the current trends and future estimations to elucidate the imminent investment pockets.
• Information about key drivers, restraints, and opportunities and their impact analysis on the music distribution services market size is provided.
• The Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the music distribution services market.
• The quantitative analysis of the music distribution services market share from 2020 to 2030 is provided to determine the music distribution services market potential.

 Music Distribution Services Market Report Highlights