PricewaterhouseCoopers (PwC) has released its 17th annual, report on the global media landscape and below are thumbnails about what it has to say about radio and the music sectors. A more detailed overview can be found in today's Around the Dial column.
Overall radio is growing modestly (2.1%), despite the impact of digital competition in both music content and on-air talent broadcasting, while in-car listening is under threat from new interactive dashboard technologies. Traditional radio broadcasters have responded either by strengthening their main differentiator – on-air personalities – or launching their own online radio platforms. But the music streamers are fighting back, by expanding their own digital offerings into radio broadcasting territory. With the entry of tech giants Apple and Google meaning drivers can use their interactive digital dashboard screen as a monitor for their smartphones.
A major tipping-point was passed in 2015 when digital recorded music revenue exceeded physical for the first time. However, digital downloads are under growing pressure from streaming, as consumers shift away from owning music and towards paying to access it through providers such as Spotify and Apple Music. Driven by digital growth, total global music revenue will rise at a 2.1% compound annual growth-rate (CAGR) to US$47.7b in 2020.
Given the decline in recorded music sales in recent years, artists are now more dependent on earnings from live music performance than ever before. This shift from recorded music to live has changed the economics of the industry, with record companies extending their revenue streams to include live performance, and concert promoters expanding into artist management. Total live music revenue (which includes all music ticket sales and sponsorship income) will rise at a 3.0% CAGR through 2020.