On March 22, 2022, the IFPI Global Music Report 2022, an annual report summarizing global music market sales, announced that global music market sales in 2021 will increase by 18.5% year-on-year. announced an increase to $25.9 billion. In the top 10 country rankings, only the low growth of Japan and Australia stands out in a bad way, but the other countries are continuing to grow at 10% to 20%, and this situation is expected to continue from next year onwards. increase.
- Development of the global music market
- Top 10 Growth Rates in Country Rankings
- Declining Japanese music market
- The downfall of the Japanese music industry is inevitable
Development of the global music market
The IFPI report finds that music streaming is helping the music market boom. The global music market grew by 18.5% year-on-year, reaching $25.9 billion in sales. Achieved the highest growth rate since IFPI began reporting global reports. The music market recorded positive growth for the seventh consecutive year.
Rapid increase in music subscription users
One of the reasons for the expansion of the global music market is the rapid increase in the number of music subscription users. Revenue from music streaming increased 24.3% year-on-year to $16.9 billion. It has grown to a point where streaming accounts for 65% of sales share. According to IFPI, there will be 523 million paying users and subscription users for music streaming services by the end of 2021. 80 million new subscribers in 12 months, up 18% from 443 million in 2021.
Rapid growth in Central America, South America, Middle East and North Africa
The IFPI report showed regional sales growth of 22% in North America, 15.4% in Europe and 16.1% in Asia. Latin America increased by 31.2% and the Middle East and Africa increased by 35%.
Top 10 Growth Rates in Country Rankings
Declining Japanese music market
Japan will grow around 9% in 2021, only down from its peak in the 1990s, and clearly downhill compared to the rest of the top five. Speaking of Japan’s music market, it is the second largest in the world after the United States, and Japan has long been said to be a music powerhouse. However, looking at the past few decades, Japan has completely fallen. In comparison, the growth of the UK and Germany has been remarkable, and it has become clear that they are in danger of falling from the second place in the world to the fourth place in the world. Why is Japan’s music market in decline?
The music industry relies on CDs
Japan is clearly bucking global trends and still relies on sales of physical media such as CDs and DVDs. 71% of sales in the domestic music market are physical, and only 29% are sales from music distribution services. The decline in sales of CDs is happening not only in Japan but also in the world, but the global music market continues to grow, and sales of music distribution have increased beyond the decline in sales of CDs. Clearly, only Japan is left behind in global trends.
Depends on idle boom
The idol boom is one of the reasons why Japan depends on sales of CDs and DVDs. Fans who want handshake tickets with idols will buy a large number of CDs and DVDs, which will lead to sales of songs. Due to the strength of this handshake ticket sales method, there is no choice but to do business that relies on idols. Moreover, the idol boom is waning and CD sales are declining, so there is no doubt that it is getting poorer.
Music industry reluctant to start new business
The record company has not made any next gimmicks when the idol boom is over. It can be said that Japan is still behind the times, as it is still developing its isolation business. Today, IT, finance, insurance, pharmaceuticals, and other industries are closely related to the global economy, but the music industry is left behind.
JPOP not interested in foreign countries
One of the reasons why record companies cannot expand globally is that JPOP is unpopular. JPOP doesn’t sell at all in foreign countries. Therefore, the current situation is that the music market can only rely on domestic purchasing power, and further decline is inevitable as the population of Japan decreases in the future.Save 22% with code 22TIXBFCM
The downfall of the Japanese music industry is inevitable
As mentioned above, there is a limit to the current situation in which Japan maintains a high ranking in terms of sales in the music market, and there is no doubt that Japan will fall into decline in the near future. It is said that the Japanese music market faces a difficult future if it does not undergo major changes from its current state.