Billboard’s latest article about Facebook’s music strategy is interesting, but the sentence that jumped out at us is actually towards the end of the piece. “UGC already accounts for $1.2 billion of the global recorded-music industry, according to one major-label executive,” claimed Billboard. And while a single-source stat might be taken with a pinch of salt, it’s a number worth remembering. If true, it would suggest that user-generated content accounts for around 6.3% of global recorded music revenues. That’s based on the IFPI’s recent report pegging the global total as $19.1bn for 2018.
“With that sum driven mostly by YouTube, the executive is bullish about the opportunity for growth from Facebook, estimating that number could grow by four times over the next decade,” added Billboard. Existing deals with Facebook and Instagram, as well as the prospect of agreements with Snapchat, TikTok, Twitter and other platforms (not least in Europe, with the recent approval of the new copyright directive) are fuelling this optimism.