IMS Business Report 2018

IMS IBIZA 2018 : IMS Business Report 2018

Alexandre Trochut
Kevin Watson Speak during IMS Business Report 2018 at International Music Summit Ibiza, Ibiza -Spain. 2018 - Credits : IMS Ibiza

IMS Ibiza released the highly anticipated annual IMS Business Report 2018, an in-depth economic study of electronic Music Industry by author Kevin Watson.

Delivered directly to the key leaders in the music industry at IMS Ibiza 2018 by its author Kevin Watson, The IMS Business Report 2018 is an annual leading industry study that provides vital and telling statistics of how the industry has grown or declined each year. If you’re working into electronic music industry, you absolutely can’t ignore Kevin Watson’s work. Analyst and author of the IMS Business Report since years now, his work is today a reference gathering the most valuable information and releasing trends in the industry. The contents and data are used by professionals across the industry, referenced countless times in market research and journalistic reports, and is an essential tool for the electronic music business.


Overall Electronic Music industry down 2% YoY to $7.3bn; value of integration into mainstream culture immeasurable.


With the influence of electronic music impacting on many other pop culture muical genres. Not surprise that there has been a bit of an adjustment after such growth. Thinking 5 years ahead what would it be worth.


If Electronic Music maintains share in each segment of the music industry, it could be worth nearly $9bn by 2021.


This year, the following report illustrates some shifts in the overall value of the genre with a slight fall by 2% YoY, encouraging statistics and activations for Spotify, how social networks are helping artist to grow their fanbases at extaudianry rates and how investment is remaining positive overall.


Some of the main points of IMS Business Report 2018 that were revealed today included:


Overall N.A. recorded music revenue grew 12.8% in 2017, but Dance/Electronic share in the USA & Canada fell YoY. Part of this was the crossover of many tracks by electronic djs and artsist into other genres such as pop and R&B, plus an adjustment was somewhat expected following recent growth so slight dip was expected.



Dance share of recorded music also fell in Germany & UK in 2017, on the back of significant gains in prior years. Europe is a similar story electronic music share down YoY.



A Nielsen study into music habits in Asia-Pacific found that Koreans are most likely to listen to Dance music. In Asia recorded music is growing with 74% of the 500 people surveyed saying they listen to Dance Music.



Electronic music can benefit from sync revenue growth (7% pa since 2013), partially driven by Netflix & Amazon. YoY growth in sync, likely driven by Netflix and Amazon spending on original content.



Business valued at $28bn, subs forecast to double by 2020; Electronic music over indexes on the platform.

71 Million people worldwide subscribed and electronic music is at the heart of this streaming platform. The ‘Mint’ playlist greatly influencing this with 6th most popular playlist. The 3rd / 4th most streamed tracks on Spotify also are electronic music related.



Track sales growth almost doubled in 2017 and acquisition of Pulselocker enables launch of new services in 2018/19. A fresh resurgence from Beatport – with growth of 8pc in Q1 and the introduction of the much anticipated future streaming service.



Estimated DJ Earnings rebounded in 2017, rising c.10% YoY; Calvin Harris down to $49m, Tiesto up to $39m. The estimation of the highest earning djs – this year up to 279 million, most DJs earning more than year before.



DJs are tapping into the rising demand for music merch- andise; global sales grew by 30% between 2014 and 2016. Merchandise helping to fuel DJs growth in earnings including brand collaborations. With electronic music events alos partnering with brands.



Role of public votes is changing – RA Poll has ceased, Billboard Dance 100 also uses chart and touring data in its alogorhyms. DJ Mag also gets upward of 1 million votes per year and Billboard doing there own poll which includes chart success and touring.



Social network has just announced Spotify & Eventbrite integrations; Top 10 DJs now adding 50k followers a week. The growth drivers can be attributed to two elements from Instagram. Instagram is now the focus of djs to increase their fanbase especially with the new activation of Spotify linking directly to Instagram stories. You can also buy tickets for events from Instagram through eventbrite – this is a huge development and other ticketing platforms could come on board to instagram.



Most popular DJs are continuing to focus on growing their fanbases on Instagram, YouTube and Spotify. Marshmello has added 2 million Spotify followers within the past 12 months. A number of emerging DJs & artists are growing their online fanbases on those platforms at even higher rates.



Worldwide expansion continues – China events expected to double in 2018, Ultra launched 23 new events in 2017. Festivals continue to grow outside the core markets of North America and Europe. China showing extraudinary expansion led by Storm Festival. Ultra adding 23 new events around the world making 45 in total.



Funding remains strong for companies focussed on Electronic music, with a number of deals in the past year. Native Instruments, Mixcloud and Splice have attracted 100 Million US dollars between them.



Pioneer DJ & Native Instruments sales continue to rise; music production software market to grow at 9% pa.


You can read and download the IMS Business Report 2018 here.