Simplify payouts to musicians anywhere in the world
The global music market is growing exponentially. In turn, music royalties are increasing, causing growing challenges and making royalty payments become more complex. Find out how to simplify the process here.
Payoneer’s eBook addresses the challenges associated with paying musician payouts. It offers a global payout solution for record companies, simplifying and automating their royalty payments to musicians.
This eBook outlines how to:
- Streamline the royalty distribution process
- Distribute music and streaming royalties globally in any currency
- Detect and prevent fraudulent activity
Global music marketplace growth
The music publishing market has experienced a compounded annual growth rate of 7.1% since 2019. and is expected to stay constant until 2024. This growth can be attributed to an increased demand for digital music services such as streaming and subscription services.
By the end of 2024, the music publishing market is set to surpass $6.55 billion.
Here are some of the more compelling statistics about the recorded music marketplace:
- It has grown exponentially on a global scale, with 9 out of the top 10 markets reporting increased revenue
- Between 2017 and 2018, the recorded music market grew by 10%
- This market experienced four consecutive years of growth between 2016 and 2019
- Recorded music reported total revenue of $19.1 billion
Music market growth by region
Between 2015 and 2019, Latin America was the fastest-growing region at an exceptional rate of +16.8%, with Brazil and Mexico experiencing +15.4% and +14.7%, respectively, between 2019-2024.
This region was followed closely by the Asia and Australasia regions, with a +11.7% for the same period. South Korea was the fastest-growing Asian country during this period, with a rate of +17.9%.
That said, North America, Europe, and Japan are the leading markets. They are followed closely by the Asia-Pacific (excl. Japan), Latin America, Middle East, and Africa.
Streaming music growth statistics
In 2018, streaming accounted for almost half of the recorded music revenue. This market grew by 33% from the previous year.
In 2020, the global streaming music revenue was $124.4 billion alone. The US accounted for $4.52 billion, coming in as the region with the most revenue for streaming in that year.
Streaming music is expected to generate 10X more revenue compared to downloading music by 2023.
Growth brings new challenges
Growth has increased the revenue and visibility of artists. There are multiple digital platforms where musicians can market their work, making digital distribution a must in this marketplace.
With digital distribution, artists can either distribute music to online stores or pay a fee to one central distributor. A central distributor minimizes the amount of work they have to do and allows them to retain 100% of their royalties.
With such promising and impressive growth comes great risk including:
Increase in fraudulent activity
Fraudulent activity has increased immensely in the music industry. Streaming platforms tend to have scammers with fake profiles who release pirated music on multiple platforms.
Common types of fraud in music royalties include:
- Fake artists
- Underage users
- Account takeovers
- Fake accounts
Growth has increased data and the number of cross-border payments for distributors to manage, increasing the need for identity verification to prevent fraud and money laundering.
Paying artists around the globe
It’s crucial that musicians and artists receive their royalties via a convenient method and in a timely manner.
Tracking and executing payments may take a long time and require manual input. There is also the need to manage currencies and rates. This can cause delays for artists in receiving their royalties.
Distributors have to pay royalties from hundreds of platforms. Determining the source of artists’ royalties and where and when to collect them can be challenging. Not to mention the relevant regulations as per the respective countries.
Your payment platform for music royalties
These facts and trends underline the need for a reliable and efficient way to make cross-border payments to labels as well as to track, manage, and pay out royalties to musicians on a global scale (all while avoiding fraudulent behavior).
Download this eBook to dig into the details and find out how to simplify payouts to musicians anywhere in the world.
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