The Value of Music Copyright Surpasses Global Cinema Box Office for the First Time
The overall worldwide financial intake from the film industry has outmatched the total value of music publishing income since records began, but a new report has demonstrated that the hierarchy has been reversed.
New Records Set
According to Will Page, the former chief economist with Spotify and PRS For Music, the total value from recorded music, publishing, and royalties, as collected by Collective Management Organisations (CMOs), reached $45.5 billion last year, compared to a total cinema box office taking of $33.2 billion.
A Sharp Swing
This means that music is now 38 per cent more valuable than its movie counterpart, a significant swing compared with a year as recent as 2019, where the cinema intake was 33 per cent ahead of music.
The Rise of Music
“If you had suggested when I first did this exercise in 2015 that music might overtake cinema, you would have been laughed out of the room,” said Page. “Back then, the silver screen towered over the likes of Spotify and Netflix.”
The report continues that music copyright has risen by 11 per cent per year since 2021, with Page suggesting that by next year, the figure could have doubled from 2014’s $25 billion.
The Vinyl Boom
Vinyl sales are growing faster than streaming – with an increase of 13.4 per cent compared with streaming’s 10.4 per cent – while he also estimates that vinyl will soon be outselling CDs globally.
The Growing Importance of Live Performance
Page also notes that the value to CMOs of live performance now exceeds that of general licensing for public performance. “Songs sung on stage are now generating more royalties than those wallpapering the background of high streets and hotels.” he said.
The Distribution of Music Income
The report also notes that the split in distribution of music income remains constant, with 63 per cent going to labels and artists, while the remaining 37 per cent goes to songwriters, publishers, and CMOs.
Conclusion
The global value of music copyright surpassing global cinema box office takings for the first time ever is a significant milestone, highlighting the rise of music in the global entertainment industry. With continued growth in streaming, live performances, and vinyl sales, the future looks promising for music creators and entrepreneurs.
Frequently Asked Questions
Q: What is the global value of music copyright?
A: The total value of music copyright in 2023 was $45.5 billion.
Q: How does the value of music copyright compare to global cinema box office takings?
A: The value of music copyright surpassed global cinema box office takings for the first time ever in 2023.
Q: Why is music copyright rising at such a rate?
A: The report suggests that the growth in music copyright is due to the increase in streaming, live performances, and vinyl sales.
Q: What is the distribution of music income?
A: The split is 63 per cent for labels and artists, while 37 per cent goes to songwriters, publishers, and CMOs.