Dance music’s illustration on the competition circuit is larger than ever, however the business’s heavy reliance on reside efficiency revenues are a double-edge sword.
David Guetta’s late 2021 assertion—that dance music’s greatest years would arrive within the aftermath of the pandemic—is beginning to show constructive.
It was a daring declare on the time, however the newest annual IMS Enterprise Report backs up Guetta’s sentiment with onerous knowledge. The 2023 version of the report, a compilation of dance music knowledge from the prior calendar yr, claims the business grew 34% in 2022.
“This isn’t nearly bouncing again; that is bouncing again and nearly bouncing off the trampoline,” mentioned Mark Mulligan, Managing Director of MIDiA Analysis.
The meteoric spike brings the worldwide valuation of the business to $11.3 billion, a 16% web enhance versus its pre-pandemic ranges. Whereas final yr’s report was characterised by the beginnings of a “return to regular” following variable states of lockdown throughout the globe, the business finally remained double-digit proportion factors under its pre-pandemic highs.
The report, authored by Mulligan and MIDiA Analysis, finds that the booming reside efficiency sector is the business’s greatest driver. Revenues elevated 65% versus prior yr to $4.1 billion. When it comes to bookings, the EDM style’s illustration on the competition circuit bookings rose 6% year-over-year to 39% of the entire share of competition bookings.
c/o Press
Dance music’s conventional recording and publishing wing, in addition to its manufacturing know-how vertical, grew extra modestly and in-line with the trajectory of the broader music business at-large. Provided that reside efficiency income handily outpaced these verticals, one unintended consequence stays: for higher or worse, digital music’s reliance on the reside efficiency sector is extra important than ever earlier than in its historical past.
“The pandemic shone a harsh gentle on the business’s heavy-reliance on reside,” the report reads. “Now, that reliance is even greater due to reside’s big development.”
Nevertheless, the report does establish a number of rising developments outdoors of the reside sector that shall be worthwhile to look at intently. Person-generated content material and productiveness augmentation on account of AI applied sciences, the rise of artist-led digital communities and the continued proliferation of latest age avenues for music discovery reminiscent of TikTok are simply among the budding development levers that might drive the dance music business of the long run.
Learn the complete report right here.
