$356.0m
$XX.Xm
1,417
834
$XX.Xm
Independent labels have struggled to adapt to the rise of streaming services as a replacement for album sales. The convenience and expansive library of music at one flat price has resonated with the demands of the modern music listener, but poor monetization and low per-minute royalties have led to steady losses for labels and artists. Because of these challenges, industry-wide revenue has been falling at an average annualized 2.1% over the past five years and is expected to total $356.0 million in 2023, when revenue will drop by an estimated 1.4%.As consumers continue to transition over, indie labels are adapting by emphasizing merchandising, touring and streaming. The COVID-19 pandemic and associated shutdowns severely limited these sources, though, and many labels found themselves especially in the red in 2020. Still, younger listeners have been staunch supporters of smaller artists and have continued to elevate the industry's music to a higher level of popularity. Returning concert activity and merchandising brought back some revenue in the years following the pandemic, but falling per capita disposable income in 2022 tempered growth. This competitive atmosphere has contributed to some compression in profit, which will drop from 9.3% in 2018 to 9.1% in 2023.In an effort to stop revenue contraction, indie labels will focus on nontraditional revenue streams and in-person events over the next five years. Recent updates from the US Copyright Office have elevated royalty rates from streaming, alleviating the biggest challenge in recent years. Combined with a rise in album sales, independent labels can expect some much-needed breathing room. While revenue will still decline, new contracts with artists can better position labels to avoid losses. Overall, revenue is forecast to decline an annualized 1.3% to $333.0 million over the five years to 2028.
Industry revenue has declined at a CAGR of 2.1 % over the past five years, to reach an estimated $356.0m in 2024.
Market size is projected to decline over the next five years.
Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
---|---|---|---|---|
Concord Music Group | 26.5 | 2.5 | 9.4 |
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Industry revenue is measured across several distinct product and services lines, including Physical sales (including CDs, vinyl, cassette tapes), Digital album sales and Digital track sales. Physical sales (including CDs, vinyl, cassette tapes) is the largest segment of the Independent Label Music Production in the US.
Digital sales continue to decline
Independent record labels find musical talent, finance the production of music and distribute recordings to retail and digital outlets. These labels have smaller budgets and operations than those of major labels, and independent labels frequently outsource manufacturing and distribution of physical records. Major labels are included in the Major Label Music Production industry (IBISWorld report 51222).
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NAICS 512230 - Independent Label Music Production in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
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Indie labels can't compete with the Big Three. Sony, Warner and Universal Music Group dominate the music industry, so indie labels are forced to compete with each other by cr...
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Concord has been buying other labels. While Concord's steady expansion of its copyright roster shows its success, acquisition activity is still driven primarily by the Big Th...
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Intellectual property is secure. Labels can rest easy knowing their artists' hard work is protected by both US and international law. When breaches happen, trade organization...
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Profit has declined alongside album sales. New revenue from streaming has buoyed profit but isn't enough to make up for the loss of high-margin physical and digital album sal...
Including values and annual change:
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Key data sources in the US include:
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The market size of the Independent Label Music Production in the US industry in United States is $356.0m in 2024.
There are 834 businesses in the Independent Label Music Production in the US industry in United States, which has declined at a CAGR of 0.2 % between 2019 and 2024.
The market size of the Independent Label Music Production in the US industry in United States has been declining at a CAGR of 2.1 % between 2019 and 2024.
Over the next five years, the Independent Label Music Production in the US industry in United States is expected to decline.
The biggest company operating in the Independent Label Music Production market in United States is Concord Music Group
Financing of musical projects and Production of master recordings are part of the Independent Label Music Production in the US industry.
The company holding the most market share in United States is Concord Music Group.
The level of competition is moderate and increasing in the Independent Label Music Production in the US industry in United States.