Music recorded in Spain stops earning 50 million euros in 2020 due to the pandemic and streaming stagnates

MADRID, 23 Mar. (EUROPA PRESS) –

The recorded music industry has closed the financial year 2020 with a total revenue of 354 million euros in Spain, a figure that represents an improvement in 4.4% compared to 339 million the previous year, but that due to the coronavirus pandemic has stopped entering around 50 million euros.

This was announced by Promusicae, the entity that groups more than 95% of the Spanish record market, accounting for the sales of music in digital and physical format (in value of the retail price), the synchronizations (use of music in advertising or audiovisual creations) and the income derived from the management of intellectual property rights of artists and producers .

The recorded music sector manages with these results to overcome a year full of difficulties that began from the very beginning of the pandemic, with stores closed throughout the country, the sale of physical media practically paralyzed and with a sharp drop in streaming consumption during the initial months of lockdown“They have explained from the association.

Since 2014, the industry has been recovering from a deep crisis, accumulating notable increases year after year that culminated in 2019 with a 22.5% increase in revenue compared to the previous year. Nevertheless, the projection for this 2020 predicted a similar percentage of growth that has finally been truncated by the pandemic.

The direct losses caused to the sector by the confinement and the subsequent restrictions on trade, tourism and hospitality, have amounted to 32 million euros between the collapse of physical sales and the decrease in income from intellectual property rights.

As a consequence of lower streaming revenues in the first months of the pandemic, the estimated total losses of the recorded music sector would reach 50 million euros. Therefore, in the absence of the crisis caused by COVID, sector revenues would have exceeded 400 million euros.

“Fortunately, the trend could be reversed over the months thanks, in part, to the high level of digitalization of the market, as a result of the effort to adapt to the tastes of users made over the last few years, together with an incessant weekly launch of musical novelties that reached the streaming platforms normally and encouraged consumption, “he added.

Promusicae has regretted that, “Against all odds“the consumption of music in streaming, a technology that was not affected by the limitations imposed by the COVID crisis and that was still available, fell during the harshest weeks of confinement.

FALL OF ‘PREMIUM’ IN STREAMING

It did so especially among premium subscribers, while the ad-funded modality was weighed down by falling ad revenue.“, he affirmed. This fact stopped the optimistic forecasts of growth at the beginning of the year, after having chained several exercises of increase of the consumption.

With the establishment of the ‘new normal’, streaming has recovered, although at a slower rate than expected, finally increasing by 24.4% (compared to 32% the previous year) and generating 250.8 million euros, a figure that alone represents 96.8% of the total digital market.

Paid subscriptions (157.4 million) have grown again, specifically by 13.5%, but less than in 2019, when the increase was 35%. Ad-funded audio avoided the drop and scored 55.8 million, largely due to increased use of music on social media (Tik Tok, Instagram, Facebook, or Snapchat), and video views (37.5 million). ) completed the entries in this section.

82.4% of the total sales of recorded music in Spain is already digital, reaching 259 million if we add the downloads of songs, albums and videos (5.2 million) and the products for mobile phones, ringtones. call and wait (2.9 million), sections that maintain their downward trend in recent years. As relevant data, digital platforms already have 3.7 million paying subscribers in Spain.

A FEW “MODEST” FIGURES

Recorded music has managed to overcome a difficult year for the economy, with a road full of obstacles that has posed a new challenge for the industry. Arriving with the lesson learned, after years of crisis suffered and reinvention, has given us a certain advantage “, acknowledged the president of Promusicae, Antonio Guisasola.

“For artists and for those of us who are dedicated to developing their creative flow, it is the best reward, as it is for Spanish culture and economy. Despite everything, these are still modest figures for the sale of music, but let’s not forget that they represent a primary source of income, which allow the activity to continue in a situation completely different from anything we have experienced before “, he pointed out.

On the other hand, the world market for recorded music grew by 7.4% in the last year, according to the Global Music Report 2021 presented in London by IFPI. Global revenue figures amount to $ 21.6 billion, highlighting the growth of streaming, which already has 443 million paid subscription users worldwide.