Final Thursday (January 6), MBW revealed a jaw-dropping statistic in regards to the US music market in 2021: 82.1% of music consumption within the second half of the yr, we calculated, was of ‘catalog’ music, versus ‘present’ music.
This calculation was strong. We based mostly it on numbers revealed inside US market monitor MRC Information‘s full yr 2021 report – which arrived final week – along with numbers revealed in MRC Information’s midyear 2021 report, which was revealed final summer time.
MBW’s math in our evaluation was detailed, however the fundamentals are hardly rocket science:
- MRC Information’s H1 2021 report, revealed final yr, confirmed that catalog claimed 66.4% of US music consumption within the first six months of 2021;
- MRC’s newest report, for the complete yr of 2021, confirmed catalog claimed a 74.5% share throughout the 12 months of 2021;
- Due to this fact, catalog naturally should have claimed a considerably larger share than 74.5% throughout the final six months of final yr (H2 2021).
We crunched the numbers in query for H2 2021 and, lo, 82.1% popped out the opposite finish.
Now, although, we now have an issue: Right now (January 11) MRC Information has issued a correction to its annual 2021 report, considerably altering its numbers in terms of each ‘catalog’ and ‘present’ music consumption in 2021.
The headline: As a substitute of ‘catalog’ music claiming a 74.5% yearly share of US consumption (as initially said), MRC Information’s newly-corrected report reveals that ‘catalog’ really claimed a 69.8% share of the annual US music market in 2021.
Stating the apparent, this alteration is materials.
Because of this, MBW has re-calculated our personal evaluation of the US market in 2021 utilizing MRC Information’s revised/corrected numbers.
[You can download the full, newly-revised MRC Data FY 2021 report – with its corrected set of catalog vs. current numbers – through here.]
On the finish of this text, you may see MBW’s new charts and calculations based mostly on MRC Information’s corrected 2021 report. Earlier than then, right here’s the upshot:
- MBW now calculates that ‘catalog’ music really claimed a 73.1% share (vs. ‘present’ music) of US consumption within the second half of 2021, versus our earlier calculation of 82.1%;
- That 73.1% share, clearly, noticed ‘catalog’ music declare practically three-quarters of the market; ‘present’ music claimed simply over 1 / 4. Statistically, it is a important acceleration of the share of the market that ‘catalog’ music claimed each in H1 2021 (66.4%), and in the entire of 2020 (65.1%);
- ‘Present’ music is getting much less fashionable in actual phrases: Throughout the 12 months of 2021, in response to MRC’s new numbers, some 269.5 million ‘Whole Album Consumption’ (TAC) items of present music have been registered within the US. This was down 3.7% on the 279.9 million determine MRC Information recorded in FY 2020;
- MBW’s calculations counsel that the second half of 2021, ‘present’ music was consumed much less when it comes to TAC (123.4 million) than it was within the first half of the yr (146.1 million).
And now, earlier than MBW’s promised colourful charts, our normal explainer about MRC Information’s ‘Whole Album Consumption’ (TAC) unit of measurement, and the way it displays each bodily and digital file gross sales, plus streaming consumption, in america:
- MRC’s ‘whole album consumption’ (TAC) metric bundles collectively bodily and digital album gross sales with single-track downloads and (on-demand) streams, with these single-track downloads and streams transformed into ‘album equal’ items. To attain this, MRC converts each 1,250 premium streams or 3,750 ad-supported streams of tracks on an album right into a single ‘sale’ for that LP. It does the identical for each 10 downloads of tracks from a single album. This method is designed to be ‘income reflective’ – for instance, with 1,250 premium streams roughly producing the identical amount of cash as a single album.
And right here’s our extra explainer on MRC’s definition of ‘catalog’ versus ‘present’ music:
- ‘Catalog’ music in MRC’s eyes counts as something launched over 18 months earlier than a shopper made a purchase order and/or pressed play. ‘Present’ music is within the inverse: any music launched throughout the prior 18 months of the second a shopper made a purchase order and/or pressed play.
Thanks on your endurance. On with the charts!
Please be aware: MBW’s calculations, the place credited, are simply that – our personal conclusions based mostly on MRC Information’s publicly revealed statistics. We make no declare that MRC Information has endorsed our calculations.Music Enterprise Worldwide