First Quarter 2021
IFPI LATIN AMERICA
Global recorded music revenues grew 7.4%. With revenues up by 15.9%, Latin America was the fastest-growing region globally.
The global recorded music market grew by 7.4%
in 2020, the sixth consecutive year of growth.
Figures released in IFPI’s Global Music Report show
total revenues for 2020 were USD21.6 billion.
Growth was driven by streaming, especially by paid subscription streaming revenues, which increased by 18.5%. There were 443 million users of paid subscription accounts at the end of 2020. The growth in streaming revenues more than offset the decline in other formats’ revenues, including physical revenues (CDs and vinyl) which declined 4.7%; and revenues from performance rights which declined 10.1% –largely as a result of the COVID-19 pandemic.
Latin America was the fastest-growing region globally. Recorded music revenues increased by 15.9% in 2020, which elevated the region’s share of the global recorded music market to 3.6%, up from 3.3% in 2019.
Latin America remained dominated by streaming revenues, which grew by 30.2% in 2020 and accounted for 84.1% of the region’s total revenues. The strong digital growth is partly explained by a much greater Internet access. In the three largest Latin American markets (Brazil, Mexico and Argentina), Internet penetration was over 75% in 2020, up from less than 50% in 2015.
Performance rights revenues were hard hit by the pandemic in Latin America.
Music licensing companies in charge of collecting performance rights in Latin America and the Caribbean on behalf of artists and record companies have seen a 27.1% decrease in their local currency revenues in 2020, down to USD 91 million.
Due to depreciation of local currencies compared to the US dollar, revenues in current dollars show a -42.1% decline versus 2019.
This is due to the sharp devaluation of the Argentine peso, the Brazilian real and the Uruguayan peso against the US dollar and, to a lesser extent, of the Chilean, Colombian, and Mexican local currencies.
Broadcasting income fell by 1.3%, while public performance income fell by 51.7%. The extremely serious health, social, and economic crisis caused by COVID-19 has dramatically ravaged national economies. The restraints imposed on social activities have had an impact on all sectors involving a high concentration of people, including entertainment, leisure, and consumption.
IFPI announces Global Recording Artist, Global Digital Single, Global Album All Format, and Global Album Sales charts for 2020.
Global superstars BTS are the winners of 2020’s IFPI Global Recording
Artist of the Year Award. The unique award is calculated according to
an artist’s or group’s worldwide performance across digital and physical
music formats during the year, from streams to vinyl, and covers their
entire body of work. They become the first winner to perform primarily
in a language other than English. BTS were joined in the top three of the
IFPI Global Artist Chart by two-time winners Taylor Swift, who finished
at #2 after topping the 2019 chart, and Drake, who secured a place in the top three for the fourth time in the last five years.
Blinding Lights by The Weeknd is the winner of 2020’s IFPI Global Digital Single Award. The IFPI Global Digital Single Award is presented to the world’s best-selling single of the year across all digital formats – including single track downloads, and streams on both paid subscription services and ad-supported platforms. Blinding Lights was joined in the top three by Tones and I’s Dance Monkey and Roddy Ricch’s The Box.
BTS’ MAP OF THE SOUL: 7 is the winner of 2020’s IFPI Global Album Sales Chart. The chart combines global sales of physical and digital album downloads to rank the top albums of the year. BTS also feature at #2 in the chart with BE (Deluxe Edition).
Audio streaming charts launched in Ecuador and Bolivia.
As the rapid growth of streaming continues in Latin America, two more countries in the region have rolled out charts in the last quarter, providing robust market measurement tools to gain deeper insight into music consumption. Together with BMAT, IFPI has worked towards the creation of a weekly chart that ranks the most popular songs on Ecuador's and Bolivia's digital music services by using statistically representative samples. With these two new launches, IFPI succeeds in making streaming charts available for its members in practically all the Latin American countries.
Brazilian justice sets a precedent on playing music in hotel rooms.
On March 24 2021, the Superior Court of Justice (STJ) of Brazil issued a historical decision that unifies the rulings that for decades had been passed by lower courts regarding the obligation to pay a fee for the communication to the public of copyright and related rights protected works and phonograms in hotel rooms. By means of the system of special repetitive appeals, ECAD has managed to obtain a unanimous decision from this High Court to confirm the obligation of the hotel industry, and also of cruise lines and any other establishments providing lodging, to pay a fee for the use and exploitation of the repertoires managed by ECAD. This decision entails several very positive consequences for the copyright and related rights sector. First, it will not be possible to present new appeals or objections about this issue before the TSJ. Second, it refutes the argument that hotel rooms are private spaces, not subject to copyright and related rights licensing and payment. Third, it greatly reduces the possibility of raising this issue before the Supreme Federal Court or of obtaining a legal reform in Congress in favor of the hotel industry. IFPI congratulates ECAD and its member societies for this important, long-awaited decision by the TSJ.
Meeting with the Minister of Culture of Panama.
On March 22 2021, a meeting was held between the Minister of Culture, Carlos Aguilar Navarro, the Director of the National Copyright Office, Idania Fernández, and the executives from the phonogram producers’ and performers’ societies, PRODUCE and PANAIE, respectively.
The objective of the meeting was to coordinate actions and policies seeking to facilitate and reactivate the collective management of the rights of phonogram producers and performers represented by PRODUCE and PANAIE. As a result of the meeting, the Panama government ratified its ongoing commitment to the protection of copyright and related rights and agreed to implement a number of actions in that direction—most notably, to conduct inspections, impose fines, and carry out settlement procedures with music users. In addition, the participating societies and Minister Aguilar have made the commitment to advocate respect of copyright and related rights by means of communication campaigns aimed at businesses and at youth and children. To this end, the Ministry of Culture has made State infrastructure available. Finally, as of April 5, work sessions [working groups?] will be started at the Ministry venue to follow up on the agreements of this first meeting.