Analytic Dreamz: Notorious Mass Effect - “MUSIC INDUSTRY HITS ALL-TIME RECORDING REVENUE HIGH: $8.4 BILLION IN FIRST HALF OF 2023”

Episode Date: October 30, 2023

Linktree: https://linktr.ee/AnalyticIn this segment of Notorious Mass Effect, Analytic Dreamz dives into the latest music industry revenue report from the Recording Industry Association of America (RIAA). The report shows that the industry is on track for its ninth consecutive year of growth, with revenue in the first half of 2023 reaching an all-time high of $8.4 billion.Dreamz discusses the factors driving this growth, including the continued rise of streaming services, the resurgence of vinyl sales, and the increasing popularity of music licensing. He also examines the implications of this growth for artists, record labels, and the overall music industry landscape.Privacy & Opt-Out: https://redcircle.com/privacy

All right, class, before we get started, I have a few announcements to make. So, welcome first, to course U.S. music revenue. We're going to be going through a plethora of different numbers. And obviously, as you can see, Spotify has this nice chart up for us to look at. And if you go to Analytic Dreams video on my Spotify channel to see the video elements along with the audio, you will understand what I'm currently saying to you. So I feel like a professor because throughout the duration of this segment,

you are going to learn everything you need to know about the music industry. Literally, you're going to be able to walk away and tell people how 2023 has went from an economic standpoint. And that, ladies and gentlemen, or with that, let's get started. But I'm excited to discuss this topic with you today. I'm going to take off my professor voice.

Basically, music industry is racking up all type of dore me, right? Recording an all-time high revenue of $8.4 billion in the first half. This is not even 2023. This is the first half of 2023 marking the ninth consecutive year of growth. Music, as far as revenue, is getting into a whole other. stratosphere of sales. Now, for this year specifically, I have a theory on why that is, but we're going to keep going. We're going to keep going.

So make sure to pull out your notebook, you know, write this down, jot it down, listen to it, put it in your brain, take a screenshot with your brain, if that's possible. Pay streaming subscriptions has been the biggest reason for these continuous years of growth. making up to 78% of streaming revenue. Right now, I have the way that people has been consuming music for the first half of 2023. Now, you probably are saying, where are your sources, young man?

Well, I would say to you that at this point in the game, if you don't believe me, I don't know what to say. Like, at the end of day, I have my sources. If you click my link to you in my bio on one of my social media, and DM me. I'll let you know specifically, but if you're just asking for clout, then guess what? I made it up. So anyways, um, digital downloads, of course, has been the, uh,

not the lowest. So it's tied with the lowest digital downloads and sync is tied to the lowest. Physical is at 11% and streaming. It is at a whopping 84%. Now this is a graph. So they're just making figures add up so it rounds out to a hundred right figures this isn't the bottom right figures don't add to a hundred percent due to rounding so that being said um why do people not purchase music anymore and why is the value of music went down to to such a point where just a simple listen is basically half a penny right you have to garner thousands and thousands and thousands of people to listen to make money from your music. And now that is on streaming, or even before it was on streaming, it's like when you purchase

an album, a percentage of that money went directly to the artist that made it, that was much more than you just press and play on your whatever DSP you use. So I find that very interesting on the landscape of music, because if you think about it, If you as an artist and was getting paid half, not even half, a tenth of what you really deserve as a musician. And compared it to back in the day, I would say the only reason people aren't upset is because of the brand deals you can get from social media. And that's why the money they make from music isn't as focused upon because you can use social media, like I said, to get brand deals. basically that's it like

offset with fashion is one of the prominent examples him having a whole TV show based on fashion Drake with steak a gambling company which is where he makes not most of his money

but like majority of his money Jay Z with his business accolades with like I'm naming a lot of hip hop because for me I cover mostly hip hop so with his business ventures with the NFL

his alcohol his alcohol brand and speaking of alcohol, Diddy with Sirrock and him partnering and basically creating his own black network in a revolt, you know. Musicians make music from everything but music nowadays and this is why nobody buys music anymore. So why focus on them streaming, which you know also helps the publicity so they want you to stream but for the most part based off the popularity from streaming that's how they get these other brand deals where they make majority of the money and that's because nobody's buy music nowadays

like 3% sync like what is it sync like maybe i'm too young but what in the world do you have to do to get music through sync like what is that like i don't know what that is um obviously i know what physical is physical copies you go out to a store and buy you know a CD digital downloads is basically what I am more focused on nowadays with my podcast because the listen is different from a download download is when people can play it offline and online and listening basically is like oh it's whenever you have connection you know especially if it's on the DSP download you can listen to it offline that's the biggest feature. I believe.

So, and also I think you can, once you download it, I think you can edit it, I believe. Like you own it, basically. It's like a physical, it's not physical, but it's like digital, digitally yours. Like, it's not going to change. The thing with streaming is, somebody can go into a whole album and change it up as far as the beats and the Aida Waits now sound like this. And back in the day, they used to sound like that. If you would have purchased it back in the day, the physical copy, you would have had that

version and so when the new version came out you still had the old version streaming if you only stream you're stuck with whatever the artist wants to do with their music right because you don't technically own it anyways let's keep going for this uh because i have a lot more stats to get through so the number of people that paid for music subscriptions has more than doubled in the past five years of course and physical media cells have seen uh resurgence a counting for 11% of recorded music revenue and bringing in $882 million. Now, physical media sales is a very interesting way to put it. I think they're talking about vinyl.

And whenever we're talking about vinyl, I have this picture up for a reason save. This lady right here, she's the one that's doing it with the vinyl. Like if you want to look at a particular artist that's putting up numbers with vinyl, is Mrs. Swift. I don't know what it is about the Swifties, but they need the red, blue, and green version of whatever Taylor Swift is putting out. Like, if she puts out three vinals

in three different color ways, now they're going to mess around and buy all nine of them. Like, at that point, it's just like, dang. Like, if we're looking at it from a statistical standpoint, Taylor Swift puts out one thing in three different color ways,

and now she sold three times more than she would have. because literally the Swifties buy whatever. Like at this point, Taylor Swift probably has, not even probably, she has the most supportive fan base and music history currently. Like as far as like alive, I know the Beehive's going to kill me.

I know the, uh, the barbs are going to try to kill me, you know, but it's just a fact. Like Taylor Swift fans are way more supportive than any other artist's fan base. Right. And if you don't believe me, let's just go to the. U.S. economy. Apparently, the errors tore from Taylor Swift is projected to have $5 billion economic

impact on the U.S. according to software company Quest Question Pro that would produce a GDP larger than 50 countries. So Taylor Swift's out here boosting the economy. So I think it's safe to say that she probably has the most supportive fan base and music currently. Anyways, let's keep going. So streaming remains the dominant source of revenue, obviously as you see right here. And making up 84% of all recorded music revenue, streaming revenue increased by 10.3% in the first half of 2023, reaching 7 billion. And on-demand revenue from ad-supported services increased by only 1%. So that's interesting. On-demand revenue from ad-supported services.

I don't know what that means. man revenue are they talking about like DSPs maybe that's what no that's that's like download supported platforms i don't know anyways uh taylor swift and biance are currently making the biggest impact as far as artists street or artists in the music industry and uh let me see oh somebody type that was nice uh somebody type in chat they said taylor swift or biance that's what all the women like now oh you definitely yeah hey you're a profit because that's what i was just about to get into So basically, Taylor Swift and Beyonce are currently making the biggest impact via live music versus recorded music.

So when it comes to music, I keep saying, artists don't make money off of you streaming their music. They just, if you've seen the numbers it takes to even make like $1 from streaming, it's insane. That's why they tell you to buy their music, right? They never be like, oh, just stream it. Obviously, they want you to stream it. if you can't buy it, but they'll prefer you to buy it.

That's because when they go on tour and those same people who bought their music is going to be the same people who go out to the tour and buy merch while they're at the show and buy a, so like for a show, right? You have to buy a hotel room. You have to eat. That costs money. You have to drive or pay for a driver, like as far as Uber. That costs money.

You have to get to the stadium, buy a ticket. That costs money, of course, probably the biggest expense. And don't let you live out of state. Now you got to fly there. Or if you are far away, now you got to drive there. So many different avenues as far as making money and boosting the economy from going to live music. And Taylor Swift and Beyonce is the biggest drivers of that as far as live performances. Hopefully, Taylor Swift is number one.

Like I just said, she's literally. boosts in the economy. But Beyonce is too. She is no slouch. I don't even think that needs to be said. Just have to, you know, put it in perspective. So the growth in the number of paid streaming subscriptions is slowing down, of course, because more and more people are starting to familiarize themselves with DSPs to the point where, I mean, there's only so many people on the planet. So there's only so many accounts you can make unless you're, you know, part of a major label. And then, you know, you just create accounts for faking stream. You know, shout out to J. Cole. But anyways, what else?

Vinyl records outsold CDs because of Taylor Swift. I'm not even going to lie to you. I don't know any other artists that sells vinals like Taylor Swift does. Like I just said, I don't want to beat a dead horse, but she sells one vinyl and has three different colorways. And one fan would buy every colorway. And I don't understand why. It's the same music. But, hey, teach his own.

that's why y'all the most supportive fan base in society so anyways overall people continue to show a willingness to pay for music and this information of course is based on r i doubles which is the people that certify the mid-year report for 2023 all right so getting into the charts because i do have charts pulled up right now so of course this one i had up for the most part of the segment you see the U.S. recorded music revenue. Digital downloads is at 3%. Physical copies at 11%. And sync is at 3%.

Streaming is at 84%. And the reason why some articles have different numbers because all of these places get from their own sources, but they're usually around the same number. That's why you won't see like, oh, streaming. This place says streaming is 84%, but another place says it's like 55. It's going to be around the same ballpark,

if that makes sense. Anyways, getting into the next chart, we have physical music revenue so see the first half of 2021 first half of 2022 and now at the first half of 2023 so as you see vinals has been the biggest has ever been in um the past three years well to three years and i keep attributing this to taylor swift because i'm not going to be the dead horse you already know how i feel about the vinals and the thing with the swifties and They just buy every single one that's available. So that's why this is bigger than any of the past years.

Because if you look at it, I feel like the CDs is really not that big of a jump. But the vinyl's is where the biggest jump is for music revenue. And other is probably streams. I ain't going to lie to you. You make, I'm not going to say you don't make any money because obviously these rappers are flexing and stuff. But if they're not flexing with the advance that their major label got them or gave them, they're probably flexing with like performance money. I promise you, they're probably not flexing with streaming money. Like streaming money for artists is pretty slow. But when they buy and

download and show up to the live events, that's where they make most of them money from. I believe any artists will tell you that. Anyways. And then our third and final, hold up, I think this is too big. Our third and final chart, US recorded music, mid-year revenues, as you can see we have wholesale and in retail and even this goes back to vinyl of course and then the retail it's pretty interesting because if y'all don't know you know there's a pandemic so uh 2020 was rough to 2022 as far as being outside so as far as buying clothes and stuff like you really there's really no need to buy quote unquote drip because who is you going to go out in and and impressed like everybody was inside and if you wasn't inside they was looking at you funny so anyways

that's basically why this looks like this and um i'm still not discrediting 2023 because like i said but we could have not bounced back at all like the projections from us shutting down everything was looking pretty spooky and i would say that we've bounced back pretty nicely i know people say we're in a recession and that's i'm attributing that to the um pandemic but at the end of the day I still feel like we're getting back to where we used to be. And that's why to bring it full circle, the music industry has now recorded in all time high revenue of $8.4 billion. Because people wanting to get outside finally felt comfortable enough to come outside.

And their favorite artist was on tour like a Taylor Swift, like a Drake, like a Beyonce, who else is on tour? Everybody's on tour. Like a Rod Wave, a little baby. Literally, this is the year for artists to make their money from live events because of the pandemic, if that makes sense. Because a lot of overseas places were shut down, even though the U.S. open mid, well, late 2022 or 2023. No, when did they open up? Like at the beginning of 2022, I believe.

overseas places, they were still shut down. They were like, we ain't playing that. We are not opening up early. So now in 2023, I feel like this is the first full year where everything's open. I may be mistaken by that, but I do believe. And I just got a notification that Taylor Swift is at the Kelsey game tonight

because Kansas City plays the Jets. And if you want another, that brings up another point. If you want to see another reason how impactful Taylor Swift is, Actually, let me just do it for you because this is actually crazy. Taylor Swift NFL sales, right? Just supporting her boyfriend for the NFL had the biggest. Let me see, ESPN. I forget what a stat is.

So Taylor Swift's presence boosted the ratings and Travis Kelsey's jersey sales by 400%. percent. Women viewership of the NFL was up 63%. Travis Kelsey's IG following was up 600,000. Travis Kelsey's podcast went to number one on Apple. And like I just said, Travis Kelsey's jersey sales went up 400%. And lastly, and definitely, shame on you, Kansas City Chiefs, because y'all know what y'all was doing. Those ticket sales went up.

three, basically three times. So like the price of the ticket went up. Because for some reason, being in the same building as Taylor Swift, you know, everybody loves to do that. So it don't matter if she performing or not. So the Taylor Swift effect is real. I'm not just saying that because, you know, I'm Taylor's, or I'm a Swifty or whatever. I just like to look at the numbers as, you know, I call myself analytic dreams.

I like to look at the numbers and see who running them up the most. And at this point in time, it's definitely Taylor Swift. So anyways, click my link tree in my bio. Let me know in one of my social medias. What do you think about the music industry recording an all-time high revenue of $8.4 billion in the first half of 2023? And what do you think is the biggest reason for music revenue studying this record?