The pandemic impacted the music and dwell leisure business in several methods.  

Content material that might be consumed at dwelling noticed will increase in income, whereas content material sorts sometimes consumed on the go (radio) or in-person noticed unfavourable impacts.  

With issues about as again to regular as doable post-pandemic, VIP+ has taken a deep look throughout the music business — podcasts, radio, streaming music and dwell occasions — to evaluate what the important thing tendencies are within the wake of COVID-19. 

Podcast and Digital Media Revenues Hold Rising 

Podcast and digital media maintain trending up, with year-on-year will increase seen each time corporations report. A pivotal problem right here is that lots of the main podcast suppliers don’t at the moment escape revenues created from the medium, with analysts in a position to glean indicative tendencies however a removed from full business image. 

The preferred podcast supply, primarily based on the “Demographic Divide” client survey fielded for VIP+ by client insights specialists GetWizer, is YouTube, adopted by Spotify, Apple and Pandora. Of notice is that undeniable fact that basic podcast listeners account for half of the surveyed pattern, with the opposite half saying they didn’t hearken to a podcast. It might be the market is starting to cap out, with home development slowing total. 

Radio Is at a Crossroads 

First, the excellent news. Two-fifths of U.S. shoppers 15 or older say they wish to hearken to the radio. However the same proportion say that streaming providers are higher than the radio, with 1 in 10 extraordinarily pessimistic about the way forward for radio. These respondents skew youthful, suggesting radio is dealing with a long-term problem with gaining new listeners to take care of viewers numbers. 

But for now radio retains its cash-cow standing, with revenues larger than these seen in 2022 for main gamers Audacy, Cumulus Media and iHeartMedia. Branching out to digital media and podcasts is a method these corporations want to future-proof their enterprise, with iHeart additionally launching plenty of FAST channels to be in entrance of audiences consuming media in non-traditional radio codecs. 

Satellite tv for pc Radio Is Seeing Income Development 

Satellite tv for pc radio is one other format to see development, at the least in monetary phrases. SiriusXM made $1.7 billion in Q2 2022, which is a rise of 12% on ranges seen two years in the past. The satellite tv for pc radio operator has made a concerted effort to broaden its viewers past vehicles to basic streaming. 

Whereas present subscriber ranges are round 200K lower than in Q2 2020, this may be partly defined by the continued automotive scarcity within the U.S. (SiriusXM is packaged into many new autos.) With synergies anticipated with fellow Liberty Media firm Reside Nation, satellite tv for pc radio could find yourself shocking many with its longevity. 

Streaming and Digital Music Are Nonetheless Rising 

Near half of Individuals surveyed by GetWizer for VIP+ say they worth listening to music with out advertisements, which is one thing that streaming music providers supply for a premium. The same proportion say it is extremely essential to have the ability to choose what they hearken to. 

That is mirrored within the income development main music labels have seen derived from streaming music. Throughout April, Might and June of this yr, Sony Music, Common Music Group and Warner Music Group collectively noticed $3.12 billion created from streaming, which is $1 billion greater than the identical interval in 2020. 

That is mirrored within the giant numbers of reported customers for the few streaming providers to share subscriber and month-to-month common person knowledge. With the likes of Amazon and Apple not sharing data on their music providers, we’re removed from a full image being accessible, however the development in label income from the format suggests that every one main providers are seeing vital use by shoppers. 

Touring Is Again

Reside occasions held have been ticking up since Q2 final yr however noticed a rally this spring. Reside Nation reported there have been over 8,000 occasions held within the U.S. and Canada on this interval, with this anticipated to develop for the summer season months. 

Within the VIP+/GetWizer “Demographic Divide” research, one in 5 folks within the U.S. say that attending dwell live shows is essential to them, which is mirrored within the development in dwell occasions. Apparently, round 1 in 20 say digital live shows are higher than dwell ones — a powerful place to begin for manufacturers like iHeartRadio’s iHeartLand leisure house in Fortnite. 

With the worst of the pandemic conceivably behind us, self-reported dwell occasion attendance has elevated throughout all codecs compared with a yr in the past, per knowledge from the VIP+/GetWizer research. 

The pent-up demand for dwell occasions has seen revenues rocket up in 2022, with Reside Nation reporting $3.6 billion from live shows and festivals in Q2, a rise of $3.3 billion from the identical interval final yr. 

Artists are additionally seeing elevated income from a return on the highway, with UMG and WMG each reporting out merchandise and different revenues, a big proportion of which stems from artist excursions. In contrast with the prior yr, merchandise gross sales are up by $124 million, or 62%. Coming throughout a time of excessive inflation, this means demand to see artists is at the moment inelastic, a very good signal for the artists themselves, in addition to labels and tour operators.