The licensing of copyrighted recordings results in the generation of music royalties, which constitute a significant portion of the revenue received by record companies, artists, musicians, songwriters, and composers.
Covid-19 Impact and Market Status
In the year 2020, a widespread epidemic of COVID-19 prompted the majority of nations to put into effect lockdown protocols in an effort to halt the virus's progression and prevent it from infecting additional people. Consequently, music streaming services such as Spotify, Tencent Music Entertainment, and Amazon Music observed an increase in the number of users who subscribed to their services. Additionally, the number of users that participate in live streaming on other platforms, such as Instagram and YouTube, has seen a surge in recent years. It was already the case that video content was streamed more frequently than audio content. In spite of this, the pandemic was a crucial factor in the rise in popularity of the product. As a direct consequence of this, COVID-19 has had a substantial influence on the expansion of the online music streaming industry.
Domination of Asia Pacific in the Music Royalties Management Solution Market
The expansion of the market is going to be led by North America's demand forty percent of the time. The United States of America accounts for a large share of the market for stock music across the entirety of North America. The expansion of the stock music sector in North America during the time period covered by this projection would benefit from the presence of a wide variety of music publishers and service providers who offer streaming music. This would be advantageous to the growth of the stock music sector.
Europe to See a Stable Growth Rate in the Period of Interest
The stock music market is set to reach new s as a direct result of the ever-increasing popularity of the subscription model in Europe. Subscriptions to the Music Royalties Management Solution are structured according to the application. The growing popularity of music streaming apps that integrate with social media platforms such as YouTube has contributed to an increase in the demand for music subscriptions. Providers of stock music typically respond to customer requests for specific audio tracks and base their pricing structures on how the music will be utilized.
The Royalty Free Type to Take Over the Market
It is anticipated that the royalty-free (RF) category of stock music would capture a sizeable portion of the industry. RF stands for "royalty-free," and refers to the freedom to use copyright works without having to pay royalties or license fees. The development of radio frequency (RF) music made it feasible to use legally permissible music in the production of videos and works based on sound. It has eliminated the necessity for producers to employ music that has been unlawfully copied by providing them with legal access to a vast selection of musical content. Additionally, the price of RF music is significantly lower than that of RM music.
The music business is dependent on these royalties; thus, it is of the utmost importance that they be collected and disbursed in compliance with the laws governing intellectual property and copyright.
Without these laws, music could be freely played or broadcast to the public without its creators ever receiving a single penny in payment for their work. This shall not only give rise to a biased environment in which record labels and artistes obtain no recompence for their effort, but it would also economically undervalue the creative medium of music itself.
The practice of music rights administration and the circulation of music royalties amongst the music industry are vital subjects that any self-sufficient and independent record label or artist should be acquainted with.
Record labels often hold the adjacent rights to master recordings within the context of the commercial music industry. As a result, record companies are legally entitled to receive music royalties anytime their music is performed publicly or broadcast over the radio. One of the most important distinctions to grasp is that between neighboring rights and performance rights.
The latter refers to the right to publicly broadcast the musical composition that is associated with a particular recording, as opposed to any recording of that composition. Neighboring rights refer to the right to record the musical composition. Publishers are the ones responsible for collecting royalties that are owed to performance rights holders; however, music rights management firms like MN2S are the ones responsible for collecting music royalties that are owed to adjacent rights holders.
Royalties are payments of remuneration made to the owners of musical works in exchange for the right to utilize those works commercially under license. The majority of the time, the organizations that utilize the music are responsible for paying out these royalties, while intermediate bodies are in charge of collecting them on behalf of the rights holders.
Sometimes the user will pay the royalties directly to the rights holders. For example, if we are discussing a big label collecting its streaming payouts, the user will pay the royalties directly to the major label. On the other hand, let's not go too far ahead of ourselves.
Recording artists now rely more heavily than ever on royalties to monetize their work. Whereas in the past, music was primarily monetized through the sale of records (which isn't exactly a royalty), nowadays recordings are licensed to streaming platforms, and payouts for digital streams are therefore royalties. Recording artists and labels collaborate with distributors to upload recordings to streaming services in order to reclaim royalties that are rightfully theirs.
It is anticipated that the size of the Music Royalties Management Solution Market will increase to USD 452.89 billion in 2029, which will reflect a year-over-year growth rate of 5.65 percent over the period covered by the estimate.
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The leading companies in the Music Royalties Management Solution Market are Footage Firm, Sound Cloud, The Music Bed, Envato, Pond5, Epidemic Sound AB, Bensound, Audio Network, Artlist, and Shutterstock. These businesses are placing a significant emphasis on research and development in order to propel the music royalty’s management market.
Latest Innovations in the Global Music Royalties Management Solutions Market: A Snapshot
- Recording artists now rely more heavily than ever on royalties to make a living; whereas in the past, music was primarily monetized through the sale of albums, in today's world, songs are licensed to streaming platforms, and payouts for digital streams are consequently royalties.
- When there is a recording deal in existence, the royalties from the master side are normally divided between the recording artists and the record labels. Record labels will typically foot the bill for release marketing and/or production, with the expectation that they will receive a sizeable cut of future master royalties. As a consequence of this, record labels receive a portion of the many sorts of royalties that are owed to recording artists.
Music Royalties Management Solution Market Scope
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2029 |
| Study Period | 2018-2029 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2029 | USD 452.89 billion |
| Growth Rate | CAGR of 5.65 % during 2021-2029 |
| Segment Covered | Type, End-User, Application, Regions |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and South Africa |
| Key Players Profiled | Footage Firm, Sound Cloud, The Music Bed, Envato, Pond5, Epidemic Sound AB, Bensound, Audio Network, Artlist |
Key segments in Global Music Royalties Management Solutions Market
Type Overview, 2019-2029 (USD Billion)
- Royalty Free
- Rights Managed
End-User Overview, 2019-2029 (USD Billion)
- Recording Artists
- Songwriters
- Licensing Companies
- Podcast Creators
- Others
Application Overview, 2019-2029 (USD Billion)
- Music Industry
- Podcasts
- Film Industry
- Others
Regional Overview, 2019-2029 (USD Billion)
North America
- U.S
- Canada
Europe
- Germany
- France
- UK
- Rest of Europe
Asia Pacific
- China
- India
- Japan
- Rest of Asia Pacific
South America
- Mexico
- Brazil
- Rest of South America
Middle East and South Africa
Frequently Asked Questions (FAQ) :
The market value of music royalties management solution market in 2029 was USD 452.89 billion.
The music royalties management solution market is growing at a CAGR of 5.65% over the forecast period.
The top companies that hold the market share in music royalties management solution market are Footage Firm, Sound Cloud, The Music Bed, Envato, Pond5, Epidemic Sound AB, Bensound, Audio Network, Artlist & among others.