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The overall market value of the electronic music industry has hit a new low, a detailed study by the International Music Summit (IMS) has revealed. The IMS Business Report 2021, which was conducted in partnership with Pioneer and Billboard, provides evidence that suggests the current global value of the industry is at a low, the likes of which was last seen a decade ago. Over the past ten years, the value of the electronic music industry has seen consistent growth. But the onset of the pandemic has proved to be a major setback, with the industry’s value over the past year dropping by 54% percent from a high of $7.3 billion in 2019.
Unsurprisingly, the biggest factor in this decline has been the shutdown of the live music industry. The closure of venues and cancellation of festivals saw a combined loss of $3.4 billion, dropping 78% from its 2019 value. Another factor being reported is the decline in relevance of dance music. In the absence of dance floors and spaces where dance music is usually consumed and supported, the share of electronic music within the value of all recorded music dropped after breaking the $1 billion mark last year.
On the flip side however, there has been significant growth in other markets such as the software and hardware industries and online markets. Spurred by DJs having to play from home during lockdown, the value of the software and hardware industry boomed to an all time high. Meanwhile, artists have found a lucrative opportunity in the sale of NFTs, with electronic music artists accounting for 76% of all music NFTs sold over the past year.
With countries with major markets slowly reopening their live music sectors, the study reports that clubs and festivals are mostly expected to recover. The live music industry is expected to rise from its 75% loss in 2020 to massive growth of up to 160% in the next year. Other opportunities born from lockdown are also expected to contribute to the recovery of the industry as a whole. This includes the recent merging of the electronic music industry with the fashion and luxury brands industry, as seen through labels such as Chanel, Prada and LVMH collaborating with electronic music artists and DJs to soundtrack their campaigns and runway shows.
The full IMS report is available to read here.