“Social media is the new music consumption; it just isn’t being fully monetised or utilised,” claims a new report published by consultancy firm Midia Research, and commissioned by content-recognition and rights management firm Audible Magic.
(Which, understandably, has a keen interest in the music industry making more of user-generated content (UGC) on social platforms.)
The report claims that music-related UGC revenue will be worth $4bn in 2020, with $2.2bn of that being “potential music rights holder income”. That’s an important ‘potential’.
“To be clear, not all of this revenue is currently flowing to rights holders – it is simply an estimate of the potential revenue attributable to music-based UGC,” stressed the report. “On the current trajectory of social media activity, this opportunity is set to increase to $5.9 billion over the next two years, with a music rights holder revenue potential of $3.2 billion.”
The report is free to access here.
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