IMPF values the global music publishing sector at $5bn with independent publishers accounting for 27%

IMPF, the Independent Music Publishers International Forum, has released a report penned by Coco Carmona and Ger Hatton documenting the value of the global independent music publishing copyright business in 2019 and 2018. We publish here the Executive Summary of the report, which can be found here. 



This report assembles, for the first time, the global market revenue and percentage share of the independent music publishing industry. It looks at where the industry revenue was at internationally in 2019 and 2018, a view which is critically important given the devastating impact of the Covid pandemic of 2020 (and 2021).

  The report also shows the growth potential of the sector in the wider music market context. The report compiles available information on the music industry and aims to illustrate the value of independent publishing within the music ecosystem. It provides an economic and financial overview of the global industry with the purpose of highlighting indie publisher’s contribution and influence.

Publishing revenues at €5 billion

  As shown here, the total value of the global music copyright business in 2018 was worth €25.52 billion. 61% per cent of this figure, over half of the total, was generated by the recording industry, while music publishers, songwriters, and composers accounted for the remaining 39%. In 2019, the value of music publishing (alone) was estimated at €5 billion globally.

  Independent music publishers within this figure, together represent 27% of that global market share; a rather impressive figure considering that this report classifies “indies” as those companies with a market share of 5%, or less, of the overall music publishing market. The report also reveals that this 27% global figure varies widely according to region, with, for example, independents constituting a remarkable 63% of the publishing market in Japan.

Digital revenues remain low

  When looking at the various revenue streams, TV and radio continue to be the most important sources of income, with performing rights accounting for most of the global music publishing income. Surprisingly, in 2018, digital revenue was below 20% of the global publishing revenue. While this figure is increasing, it is still shockingly low. For instance, though digital revenues account for 80% of the growth in revenues on the recording side, this is not the case in publishing where growth comes mainly from mechanical revenue. Independent music publishers are well aware of this discrepancy and it is something that requires further reflection and action.



  In terms of regions, North America, Europe and Japan are leading the growth curve, but growth is a reality on all continents. While the report shows that it is more difficult to obtain strictly accurate figures in regions such as South America, Africa and parts of Asia, the tendency across the board is similar, and the issue of accuracy in reporting is one which indies will work to ameliorate together with collective management organisations (CMOs). Piracy and corruption continue to be a real problem everywhere, particularly in the African continent and China, and IMPF joins industry colleagues and other rights holders in any efforts to address this threat.



  This report acknowledges the serious and devastating impact of the Covid pandemic on the music industry. Around the world, there has been a wave of cancellations and postponements of live performances, with many, many more to come. This is having a dramatically ill effect on the livelihoods of all those working in, and connected with, the music sector. While some CMOs have ventured to calculate estimated losses, the real impact will only be known, and felt, next year, given the time-line between activity, collection and distribution.

Adapting to changes

  As the case studies included in this report demonstrate, independent music publishers show flexibility, persistence and ability to adapt to change, particularly in these difficult times. During the months following the outbreak of the Covid pandemic, publishers have had time to reflect on how they do business and as entrepreneurs, they have seen and responded to the new licensing opportunities brought on by the worldwide lockdown.

  Streaming and digital services are clearly growing, and indie publishers want to look at ways of ensuring that their own value is fully recognised. The “value gap” continues to be addressed in different regions of the world and it is crucial that policy makers understand that the “safe harbour” regime designed in the early days of the Internet can no longer be used to exempt certain online services from the normal conditions of music licensing. In the EU, the Copyright Directive is in the process of being transposed into national legislation. Efficient and accurate implementation is crucial to ensuring that rights holders are fairly and sufficiently remunerated for the use of their online copyright-protected content.

  However, low levels of digital income – one-fifth of the global music publishing income as shown in this report – are not merely due to “safe harbour” issues, but also due to the way licenses are negotiated, thereby begging the question as to whether the indie music publishing market could in effect be bigger. Rethinking the way streaming licenses are granted is clearly on the table. This is particularly important given the impact of Covid on the music industry. Streaming subscriptions are, as noted previously, on the rise, and yet this growth is largely beneficial to the labels with over 55% of their 2019 revenue coming from streaming services.

Information for policy-makers

  The report shows the value and contribution of independent music publishers to the global music market and provides substantive information, future proofing and guidance for industry, authors and composers, as well as policy and decision makers. It is also vitally important to work together to re-balance the asymmetries between labels and publishers, an asymmetry that has only been exacerbated by Covid.

  As the network and meeting place for independent music publishers globally, IMPF is confident that by working together any challenge can be turned into an opportunity, and this report demonstrates the strength of the independent market. IMPF will continue to assist and connect indie publishers around the world and ever more so in the current climate, and especially in those territories where indies may be sole operators and lack any solid network.