Music Distribution Services Market | Evaluated to Hit at a CAGR of 6.2% by 2030

Increase in number of active music listeners around the globe and rise in interest in different varieties of music drive the growth of the global music distribution services market.

However, risks related to data leakage and music piracy concerns in online music distribution restrain the market growth. On the other hand, integration of virtual reality in the music distribution platforms creates new opportunities in the coming years.

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Based on type, the artist-to-fan segment accounted for the highest share in 2020, contributing to nearly three-fifths of the global music distribution services market, and is projected to continue its leadership status during the forecast period. Moreover, this segment is estimated to manifest the highest CAGR of 6.9% from 2021 to 2030.

This is due to rise in internet penetration and adoption of artist-to-fan business models by independent musicians, independent music labels, music marketing experts, promoters, and others in the music industry to expand the fan base. The research also analyzes the distributor to digital retailers segment.

Based on region, North America contributed to the highest market share in 2020, holding more than two-fifths of the global music distribution services industry, and is projected to continue its lead in terms of revenue by 2030.

This is attributed to rise in investments in emerging technologies to streamline distribution processes, increased adoption of music distribution services to improve corporate performance, and developed socio-economic and IT infrastructure in countries such as the United States, Canada for cloud-based music distribution services.

However, Asia-Pacific is expected to manifest the fastest CAGR of 8.6% during the forecast period. This is due to increases music distribution services such Spotify, Tik-Tok, and others along with deployment of automation by independent music producers and record companies to improve corporate processes, management, and audience behavior tracking.

Based on deployment mode, the cloud segment held the largest share in 2020, accounting for nearly three-fifths of the global music distribution services market, and is projected to continue its lead position during the forecast period.

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Moreover, this segment is expected to witness the largest CAGR of 6.6% from 2021 to 2030. This is due to numerous advantages offered by cloud deployments such as low deployment costs, increased flexibility and scalability in music distribution software platforms, predictable running expenses, and risk reduction for system downtime. The report also discusses the on-premise segment.

Covid-19 Scenario

  • Owing to the Covid-19 pandemic, the music distribution services market has been hit hard as retailers were unable to distribute music with closure of stores during the lockdown. However, the offline distribution is expected to get back on track post-lockdown. 
  • Independent music labels, producers, and artists along with established music companies began integrating new ways to monetize music consumption and adopted innovative distribution models. The release of music on online streaming platforms such as Spotify, iTunes, and others increased considerably as listeners changed their consumption behavior.

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