When we reported on the IFPI’s latest figures yesterday, we wondered why its total for 2021 recorded music revenues ($25.9bn) was so different to the estimate that consultancy firm Midia Research ($28.8bn) published last week. The two figures are usually closer.
Yesterday afternoon, Midia MD Mark Mulligan published a blog post giving its explanation, suggesting that the IFPI’s report may be underestimating the revenues of independent labels and DIY artists.
“The major labels’ combined revenue in 2020 was $15.2 billion, and in 2021 it was $18.7 billion, representing 25% annual growth. If you simply deduct those figures from the IFPI figures you end up with an implied independent figure of $6.5 billion for 2020 and $7.0 billion for 2021,” wrote Mulligan.
“The implied indie growth rate is therefore just 9%, i.e., indies (according to the IFPI) grew three times more slowly than the majors, with implied market share dropping from 30% to 27%. Everything that MIDiA has been hearing from the market suggests that 2021 was actually a strong year for the non-majors.”