Recorded Music Revenues In MEA Surged By 8.4% In 2020
The recorded music revenue in the Middle East and Africa (MEA) region witnessed an 8.4% surge last year, according to the annual report by the International Federation of the Phonographic Industry (IFPI), largely driven by streaming.
The recorded music revenue in the Middle East and Africa (MEA) region witnessed an 8.4% surge last year, according to the annual report by the International Federation of the Phonographic Industry (IFPI), largely driven by streaming.
Key findings
• IFPI's Global Music Report said that the increase in recorded music revenue in the region was primarily driven by MENA, where revenues rose by 37.8%.
• Streaming dominated in MEA, with a 36.4% increase in revenues amid the COVID-19 pandemic.
• MENA and South Africa combined accounted for 86.7% of the region's revenues.
• For the sixth consecutive year, Latin America dominated as the fastest-growing region globally, with revenues increasing by 15.9%, while Asia posted 9.5% growth in 2020.
• Overall, the global recorded music business increased by 7.4%, with total revenues touching $21.6 billion. This was due to continued increase in paid subscription streaming revenues— which increased by 18.5% and offset a drop in physical and performance rights revenues.
Key quote
“Fuelled by record companies' ongoing investment in artists and their careers, along with innovative efforts to help artists bring music to fans in new ways, recorded music revenues grew globally for the sixth consecutive year, driven by subscription streaming,” IFPI CEO Frances Moore, said in a statement.
“As record companies continue to expand their geographical footprint and cultural reach, music has become more globally connected today, than ever before and this growth has spread across all regions around the globe.”
Other interesting findings
• Last year's most popular artists were K-Pop boy group BTS, followed by Taylor Swift, Drake and The Weeknd. BTS' fourth studio album Map Of The Soul: 7 topped the IFPI Global Album Sales Chart and the newly-launched Global
Album All Format Chart.
• The U.S. continued to dominate the music market in 2020. The Netherlands made its debut appearance, landing 10th on the list.
• At the end of 2020, there were 443 million users of paid subscription accounts.
• Streaming, which accounted for 62.1% of global recorded music revenues, was the dominant format. Total streaming, including both paid subscription and advertisingsupported, increased by 19.9%, reaching $13.4 billion of total global recorded music revenues.
• Revenues from performance rights, the use of music in advertising, film, games and TV, permanent downloads and CDs declined, largely as a result of the COVID-19 pandemic.
The region’s music market
Within the region, the Arabic music industry has witnessed mergers and acquisitions since the start of 2021. Warner Music Group confirmed mid-February that it will invest in the region's record label Rotana Music, expanding the American music company's presence in the growing MENA market while extending the reach of Rotana's artists on a global scale. The deal reportedly valued HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud's Rotana Group-owned label at approximately $200 million.
In January, the U.A.E.-based asset management and investment banking platform SHUAA Capital announced that its managed funds platform has picked up a stake in streaming service Anghami. During the first week of March, Anghami was officially announced as the first Arab tech company to list on the Nasdaq stock exchange after agreeing to a $40 million merger with a special purpose acquisition company (SPAC) Vistas Media Acquisition Company Inc.
And Saudi Arabia's lifestyle and entertainment brand MDLBeast announced in February that it was gearing up to launch its own record label, MDLBeast Records, and its first album, Soundstorm Volume 1.