The following MBW analysis comes from Russ Crupnick (pictured inset), Managing Partner of MusicWatch – a leading US-based marketing research and industry analysis provider to the music and entertainment industry. MusicWatch works with major labels, trade associations, and streaming and technology companies to understand trends in consumer behavior. Prior to founding MusicWatch, Crupnick founded and ran the entertainment practice at The NPD Group.
For decades “the charts” have been the arbiter of consumer tastes in music. That makes sense. What’s selling (in CD days) or what’s streaming (today) lubricates the engine of the music industry.
The charts drive revenue allocation and help to sort out the winners when it comes to fan appeal. Some pundits cite the streaming charts and conclude that the entirety of the United States is listening to Hip-Hop. Look at the year-end summary with a wealth of data, including the top music formats and genres. The chart below shows Nielsen’s Share of Total Volume, which calculates US “album sales” based on a formula of physical and digital sales, and on-demand streams.
The R&B/Hip-Hop category dominates the Nielsen charts, which are published by its sister company atVenu, a live event commerce platform (back when we had live events), reports that T-shirts are the top selling event merch, with K-Pop, Pop and Hard Rock accounting for the highest per head sales; Rap/HipHop ranks #11 in average dollars per head (atVenu).
On the live side, heavy spenders on tickets to live events favor Classic Rock over Rap/HipHop by a 2:1 advantage.
In 2019, the ticket side of the U.S. live music business drove nearly $8B in revenue, contrasted to $11B for recorded music*.
Considering that touring and merch account for a large portion of artist’s livelihoods it is vital to understand which genres are tops among big spenders.
*Sources: Live tickets, Soundchart from PWC/Citi estimates; Recorded Music from RIAA [223 articles]” href=”https://www.musicbusinessworldwide.com/companies/riaa/”>RIAA– both 2019.
New and emerging touchpoints for fans
There was a time when you expressed fanship by listening on the radio, buying CDs and going to shows. Today we have podcasts about music, podcasts featuring music, and TikTok. There is music in video games and music in gaming apps.
Seven out of ten Americans use social media to relate to artists and live events; 29% regularly listen to music on social apps. Each of these outlets represent another touchpoint for fans to bond with “the soundtracks of their lives”.
“To truly understand the DNA of music fans, we’ve got to think beyond the charts.”
Charts are the currency of the music business. It’s been nearly 30 years since the start of the “SoundScan era,” which used retail sales of CDs and cassettes to revolutionize how the charts were created.
The charts have evolved to the new reality, where streaming accounts for 80% of US recorded music revenue (source: RIAA). Even as streaming comes to dominate how we listen, fans have a myriad of other options for connecting with their favorite music.
To truly understand the DNA of music fans, we’ve got to think beyond the charts.Music Business Worldwide
