There are seven different aspects to the music industry.
1. Artist management
2. Live performance
3. Publishing songs
5. Customer industry
6. Social media
The value of each sector to an artists income has had significant changes in the past. In December 2015 Billboard magazine showed the breakdown of the professional musicians income sources as: 80.4% for live performance, customer industry and social media. Sales through downloads, DVDs and sound recordings was down to only 13.3%.
This is likely to be changing again in the current climate of social distancing and lockdown, creating space for new and innovative ways of making a living from music.
THE RECORDING SECTOR
The worldwide figure is above 30% for independents which is probably the same size as Universal Music Group. In certain countries and most of Africa it is 10% or lower but in South Korea the independents have more than 80% because they have a dynamic independent network working well together. It would be nice to move Africa from 10-20% in the next five years. When you have a healthy independent sector you have a very healthy creative environment for the entire music industry.
The consumption of music is constantly changing. Cassette’s replaced the vinyl. CD’s replaced casette’s. By 2002, the CD and DVD era brought in $18.5 BN a year. And within two years 85% of that market was decimated by the on-set of digital. The world market size in 2017 was $13 BN. By 2018 there were signs of a recovery through streaming.
South Africa represents less than 2% of the global recorded music market. The South African recorded music market has been declining over the past decade. In 2018 it was only worth $18m. This is a perilous time for the independents in South Africa.