Joseph Hwang
* The statistics cited in this article are from the "2023 Music Industry White Paper" published by the Korea Creative Content Agency, part of the Ministry of Culture, Sports and Tourism of the Republic of Korea.
1. Global and the U.S. Music Market
The global music market is estimated to have reached $61.17 billion in 2022 (PwC (2023), Global Entertainment & Media Outlook 2023-2027 Global). This represents a 33.3% increase in growth compared to the previous year and is larger than the market size before the pandemic. In the initial six-month period of 2023, music streaming surpassed one trillion hours, a feat achieved in a mere three months, one month faster than in 2022.
In 2022, the U.S. music market was valued at $26.98 billion, representing a 32.6% year-over-year growth. Streaming music subscriptions constituted 80% of total revenue, with 82.1 million subscribers to streaming services, exhibiting a compound annual growth rate of 15.03% (PwC (2023), Global Entertainment & Media Outlook 2023-2027 US).
The global music market is experiencing growth in size and the proportion of digital music. The digital music market in the United States was valued at $12.682 billion, representing 80.9% of the total US music market. The digital music sector has become the dominant force in the global music market. This phenomenon is observed in other fields of markets worldwide as well.
Notably, Taylor Swift's songs generated sales that were more than double those of the second-ranked song. Most analysts concur that Taylor Swift's success can be attributed to her high percentage of digital music revenue and her portrayal of an independent woman in her songs, which aligns with the issue of diversity acceptance in the United States. Taylor Swift became the first female artist in the world to have 10 songs on the Billboard Hot 100, and the most songs on the Billboard charts in the same period, with 40 tunes total.
2. K-pop in the United States
As indicated in the MRC DATA YEAR-END REPORT US 2022, published by Billboard in 2023, on page 52, sales of compact discs by K-pop artists have been robust within the Billboard World Music genre. This phenomenon is regarded as more unusual than in other genres within the US market.
BTS sold 413,000 copies, while Tomorrow X Together sold 227,000 copies. Stray Kids' two albums were ranked fifth and seventh, and Twice and NCT127 were ranked sixth and tenth, respectively.
3. Digital Music Streaming Platforms
Music consumption has become increasingly individualized, as most music consumers utilize mobile devices, such as iPhones, to listen to music. Additionally, sales of earphones and portable speakers have increased, as has the practice of listening to music in vehicles. Consequently, digital music streaming platforms such as Spotify are introducing services for users with personalized playlists. The level of personalization required for this process is beyond the capabilities of humans, thus the majority of these platforms utilize AI to facilitate the delivery of personalized content to users.
Similarly, YouTube Music is also weighing with this form of personalization. As users engage with digital music platforms, they generate substantial data. To maintain the competitiveness of the platforms, these service platforms analyze the users' large data sets. Consequently, the phenomenon of personalization of services is accelerating.
The culture, the music industry infrastructure (including the prevalence of recording and playback devices), and the service platforms that provide music have all been subjected to individualization. Music production companies and artists must recognize this issue to prevent failure. In light of evolving infrastructure, it becomes necessary to adapt platform algorithms. This is a task that few individuals or companies can accomplish. The fundamental structure of the social system is undergoing a significant transformation.
4. Individualization
The current music industry is characterized by a peculiar phenomenon: the individualizedization of industry. In consuming digital music, users are generating data. This data is employed to reinforce and accelerate the phenomenon in question. This constitutes a kind of feedback loop.
Furthermore, the current phenomenon of individualization does not entail a total separation of individuals. The cohesion of the crowd is physically loose, yet relationally it is more sophisticated and stronger than ever. Individuals engage in more sophisticated communication with other individuals in their respective crowds. Collective actions are occurring with greater rapidity than ever before, and the collective power that manifests itself externally has become stronger and more concrete. The users' consumption of music is now a highly personalized activity. However, the potential for collective action to be mobilized by these individuals is significant when issues arise.
This represents a radical departure from the experiences of market providers in this industry. This phenomenon is being experienced for the first time by all of these entities, those who consequently are losing sight of the artist's identity and the direction of music production.
The individualization of music consumers is a phenomenon that is becoming increasingly evident. However, group tastes and individual behavior patterns prove more unpredictable than ever. The success of those who emerge from this period of transformation in the music industry will be determined by their ability to respond effectively to the individualization of consumers. Moreover, it seems reasonable to suggest that this process of individualization is not confined to the music industry, but is a general phenomenon that can also be observed in other sectors. It seems reasonable to posit that technological advances are a significant factor in this change.
* References and quotations:
https://welcon.kocca.kr/ko/info/trend/1953646
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