Value of electronic music industry dips 1% to £5.7 billion

Value of electronic music industry dips 1% to £5.7 billion

The value of the electronic music business dipped 1% to $7.2 billion (£5.7bn) in 2018/19, according to the latest IMS Business Report.

Growth came from value of recorded music, festivals and hardware and software, but was offset by a decrease in the value of clubs, and earnings of DJs and artists. 

Having grown 60% in just three years during the boom years of the early 2010s, EDM's growth had slowed to 3% by 2017 and declined by 2% the following year.

The industry continues to go through a period of stabilisation and maturity

Kevin Watson

IMS Business Report author

"The industry continues to go through a period of stabilisation and maturity, but in some areas we're still seeing some really interesting growth, like recorded music, festivals and the whole gaming side of things as well," the report's author Kevin Watson told Music Week.

Watson (pictured) delivered the 2019 edition of his annual report on the sector to delegates on Wednesday (May 22) on the opening day of the International Music Summit (IMS) conference in Ibiza.

It revealed that dance music's share of recorded music fell significantly in the USA and the UK in 2018 versus 2017, but rebounded in both Germany and Canada

An IFPI survey ranked dance/electronic as the world’s third most popular music genre, behind pop and rock.

Forbes latest report shows estimated earnings of highest-paid DJs fell significantly in 2018. The Top 10 total of $261m (£203m) in 2018 was the lowest since 2013. Calvin Harris was again the top earner, bringing in $48m (£38m) only slightly less than the $48.5m (£38.3) he earned in 2017. The Chainsmokers were second on the list, earning $45.5m (£35.9m) a 20% year-on-year increase.

The number of nightclubs in the UK fell by 21% from 2,128 to 1,673 in the 12 months to December 2018, compared to a 1% decline per year between 2013 and 2017. In Las Vegas, meanwhile, the proportion of visitors going to hotel clubs and pool parties has also dropped significantly since peaking in 2016.

IMS 2019 runs until Friday, May 24.

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