IMS Business Report 2016

An annual study of the Electronic Music industry

by Kevin Watson
1
IMS Business Report 2016 by KevinWatson.net
IMS Business Report 2016 covers all aspects of
the industry, and results of the IMS Survey
Music
1
Sales of tracks, albums and streaming by country

DJs & Live Acts

2
Profiles of leading artists, including earnings and social media

3
Clubs & Festivals
Popularity of festivals and clubs around the World

Companies & Brands

4
Key players in industry, recent M&A activity and partnerships

5
IMS Survey
Exclusive results from survey of key industry players

6
Industry Overall
Updated estimate of value growth of Electronic Music globally
2
IMS Business Report 2016 by KevinWatson.net
1 Music
Global music industry growth is being fuelled by
South America, China and streaming services
Music Revenue Growth by Paid Subscribers to Music
Country / Region: Top 5 Streaming Services
(YoY 2014-2015) (2012-2015)
YoY % Chg +66%
68m
79%

64%
41m
m
35% 28m
20m
33%

25%

Source: IFPI, Billboard 3

IMS Business Report 2016 by KevinWatson.net
1 Music
Dance volume of streams in USA up 33% YoY to
15bn, although share of all formats fell in 2015
Electronic / Dance Music by Format (USA)
Streams (bn) Share of Sales by Format (%)
+33% Dances share of digital
14.9 Digital Tracks track sales (4.2%) still
remains higher than the
level it was at in 2012
11.2 Album share trending
to lower level following
significant decline in
2014
In terms of streams,
Albums Dance share fell
significantly, but overall
volume increased 33%
YoY from 11bn to 15bn

Source: Nielsen Music U.S. report 4

IMS Business Report 2016 by KevinWatson.net
1 Music
In the USA, 54% of all Dance sales are streams,
making it the 5th most popular streaming genre
Share of Streams by Streams as a % of Total
Genre (USA, 2015) Sales (USA, 2015)
Over half of Dance
sales came from
21 45 streaming in 2015
In the USA, total
streaming across all
18 27
genres grew by 93%
YoY, in comparison
15 35 to album and track
sales declined 6%
and 12% respectively
9 73
Consumers listened
to an estimated 15
5 54
billion Dance /
Electronic streams in
4 19 2015

Source: Nielsen Music U.S. Report 2015 5

IMS Business Report 2016 by KevinWatson.net
1 Music
In the UK, streaming of Dance music grew at a
faster rate than any other genre in 2015 (Jan-Oct)
Streaming Growth by Genre
(UK, Jan-Oct 2015)

In terms of Album
Equivalent Sales (AES),
107%
Dance grew 3.2% YoY Vs
1.4% market average
104%
Dance buyers twice as
likely to subscribe to
91% music streaming service
than other genre fans
64% House and Garage are
most popular Dance sub-
genres in terms of single
Total = 78%

58% sales, accounting for 48%

of singles
40%

Source: Official Charts Company / BPI 6

IMS Business Report 2016 by KevinWatson.net
1 Music
In terms of sales, Dance remained in the top
three genres across all formats in the UK in 2015
Dance Music Share of Sales by Format (UK) Dance music maintained
7.7% share of album sales
in 2015, placing third
Compilations
behind rock and pop
Share of Compilations and
Singles dropped slightly
YoY, but the genre
Singles maintained position of 2nd
and 3rd most popular,
respectively

Albums Over 20% of spend on

Dance by 13-19 year olds
highest of any genre
equivalent to 11% of total
spend by that age group

Source: Official Charts Company / BPI 7

IMS Business Report 2016 by KevinWatson.net
1 Music
Electronic artists dominated Spotify in 2015
Lean On is now most streamed song of all time
Most Lean On (ft.
Streamed M and DJ 540m
Song of Snake) by streams
Major Lazer Now the most streamed song
2015 of all time on Spotify

Fastest artist to reach

Breakout
Artist of Kygo 1 billion
2015 streams
In just one year

Most Viral
Sugar (ft.
Francesco
55
Track of appearances
Yates) by
2015 on Spotify Global Viral 50 chart
Robin Schulz
8
Source: Spotify, Billboard
IMS Business Report 2016 by KevinWatson.net
1 Music
Electronic Music is the only genre to have shown
significant growth in Google searches since 2009
Google Searches by Music Genre
(Weekly 10th May 2009 14th May 2016)
INDICATIVE

Consistent level
maintained since initial
peak in April 2014
Electronic
Index Dance Music
(w/c 10th (May 16 = 321)
May 2009
= 100)

Pop Music (112)

Rock Music (51)

Hip Hop Music (39)

May May
2009 2010 2011 2012 2014 2015 2016
Source: Google Trends, Digital Music News 9
IMS Business Report 2016 by KevinWatson.net
1 Music
Techno is now the best selling genre on
Beatport, overtaking Tech House in Q2 2016
Best Selling Genres on Beatport
(Q1 2014-Q2 2016) Now #1 genre on
1 Techno Beatport, #3 just
2 Tech House two years ago
3 Deep House
4 House
5 Electro House Highest climber
6 Drum & Bass since Q1 2014
7 Prog. House up three to #6

8 Electronica
9 Indie Dance / Nu Disco
10 Trance
Trance has now
11 Minimal fallen to the 10th
most popular genre

2014 2015 2016

Source: Beatport 10
IMS Business Report 2016 by KevinWatson.net
1 Music
In France, one third of radio stations dedicated
>10% of their output to Dance tracks in Q1 2015
Radio Stations in France: Dance Share
of Tracks Played (Jan Mar 2015)*

Six radio stations in France

74% played Dance tracks over
10% of the time in 2015
33%
Avicii was the most widely
19% circulated artist on French
radio in 2014, with his 25
16% titles featuring in 48k
broadcasts, resulting in 2.5
12% billion listens
In terms of music sales in
France, in 2014 Dance
(labelled TechnoJungle
House) accounted for 2%

Note: * Eight stations with highest Dance share shown; Data collected Monday-Friday, 05:00-24:00
Source: GFK, SNEP 11
IMS Business Report 2016 by KevinWatson.net
2 DJs & Live Acts
Forbes Electronic Cash Kings suggests DJ
earnings inflation slowed to just 3% in 2015
Forbes Electronic Cash Kings (2012-15)
YoY% INDICATIVE
+12% +3%
258 Top 9 3% Calvin Harris 2015
252
+97% earnings estimated
225 Calvin Calvin to match the year
Harris Harris No. 1 -% before ($66m)
$66m
$66m
This was more than
Guetta Guetta
$m $37m No. 2 23% the top earning
$30m
Avicii basketball player
Tiesto
$28m $36m
No. 3 29% and F1 driver
114
Second and third
highest earning DJs
saw over 20%
No. 4-9 (7)% increase YoY
Total earnings for
remainder of Top 9
actually fell 7% YoY
Note: * Excludes DJ Pauly D 12
Source: Forbes
IMS Business Report 2016 by KevinWatson.net
2 DJs & Live Acts
DJs have on average grown their Soundcloud
followers by over 35% in the last 12 months
Social Media Fanbases of Topdeejays Highest Ranked DJs
(YoY % Change May 2015 to May 2016)
David Guetta: fan base
on Facebook falling;
Soundcloud followers
up 60%

Calvin Harris: up one

place in rankings; YoY
YouTube subscribers
have almost doubled

Martin Garrix: >50%

increase in fan base on
all four platforms
Flume: average YoY fan
base growth of c.90%

Top 1000: average fan

base growth of 29%
across four platforms

Source: Topdeejays.com, Facebook, Twitter, Soundcloud, YouTube INDICATIVE 13

IMS Business Report 2016 by KevinWatson.net
2 DJs & Live Acts
Kygo has added 7,000 social media fans per day
in the last year, more than trebling his fanbase
Kygo Social Media Fanbase by Platform
(May 2015 to May 2016)
1,908 Kygo has added 2.6
million fans in the 12
months to May 2016
across four platforms
Added His YouTube subscribers
May 2015
1,221
1,377 to May are now 15x the level in
k 2016 May 2015, adding 1,000
642 per day
As at May
2015
Total YouTube views have
388 risen to 126 million
241
530 579 Facebook likes have
212 365
increased by 1.4 million to
nearly 2 million, with over
180k people talking about
his page
YoY Chg: 259% 737% 111% 1,574%
Source: Topdeejays.com, Facebook, Twitter, Soundcloud, YouTube INDICATIVE 14
IMS Business Report 2016 by KevinWatson.net
3 Clubs & Festivals
Asian clubs dominate new entries in the 2016 DJ
Mag Top 100 four clubs (out of 20) from China
DJ Mag Top 100 Clubs 2016: New Entries
by Country & Continent
Nine of 20 New Entries in
2016 from Asia
Three new clubs from
Jakarta enter the list
Colosseum Club (#64),
# Dragonfly (#78) and X2 (#97)
China added four new clubs,
including Elements in
Beijing (#65) and Club
Cubic in Macau (#81)
Highest New Entry in 2016
was Omnia in Las Vegas,
which opened in March 2016

Asia NA Europe ME First club from UAE entered

(9 clubs) (6) (4) (1) the list at #49 (White Club,
Dubai)
Source: DJ Mag Top 100 Clubs 2016 15
IMS Business Report 2016 by KevinWatson.net
3 Clubs & Festivals
Across Europe at least 1 in 7 people have
recently attended a Dance Music event
Proportion of Population That Have Attended
A Dance Music Event in Past Three Years
Ticketmasters 2015 report
showed 1 in 6 people in the
16% UK had attended a dance
music event in the past three
33% years, rising to 1 in 3 in Spain
A similar survey by ING in the
14% Netherlands found 1 in 7
people had been to a dance
Average Spend on Dance Festival Ticket music event in the past year
alone

91 Attendees at Dance music

festivals pay on average
around 50 per ticket in Spain
53
and the Netherlands, rising to
70 in the UK
51
Note: * Proportion in past one year, not three years
Source: Ticketmaster State of Play: Dance Music report 2015; ING Dance Music Survey 2015 16
IMS Business Report 2016 by KevinWatson.net
3 Clubs & Festivals
Electronic Music related events in the US are the
only ones showing a YoY increase in attendance
Stated Attendance at US Live Music Events by Type
(YoY Change 2014-15)*
In 2015 51% of
Americans stated they

Electronic Music
+3% had attended a live

related events
music event, up from
+1% 44% in 2014
Club events with no
specific headlining DJ
+2%
showed the biggest YoY
change, up 3%
0% Other Electronic Music
related types of events
0% were also up YoY,
whereas live concerts
and music festivals
(1)% showed no increase
Note: *Question: About how many of the following types of live events, if any, do you attend per year?
Source: Nielsen Music 360 Report 2015 17
IMS Business Report 2016 by KevinWatson.net
3 Clubs & Festivals
Tomorrowland ticket prices have risen 12% pa
since 2012; 2016 edition sold out in just 40 mins
Tomorrowland Full Madness Pass
Ticket Price (2012-2016) INDICATIVE
CAGR% Tomorrowland festival is
2012-16 expected to welcome c.180k
263 12% fans in July 2016
238 273
Tickets for the weekend are
priced at 273, c.60% more
Sold out in than in 2012
199 40 minutes Total social media fanbase
173 has now reached nearly 18m,
with c.700m YouTube views

Two 8.4m 5.0m

Weekends

2.0m 2.5m

Source: Industry Press, Tomorrowland, Social Networks 18

IMS Business Report 2016 by KevinWatson.net
3 Clubs & Festivals
EDC Vegas is estimated to have contributed
$1.3bn to the economy over the past five years
EDC Vegas Spending & Economic Impact
(2011-2015) INDICATIVE
$1,300m A recent study estimated the
economic impact of the past
Insomniac five EDC Vegas events was
$280m
Spending*
$1.3 billion
$797m $1,020m Attendee The 1.7m attendees spent c.
Spending $640m over that time on
$159m various things, including
$m
transport ($94m) and food
$638m 1.6x and beverage ($189m)
Insomniac spent c.$160m,
generating impact of $280m
Spending has also generated
an estimated $81m in state
and local taxes

Note: * Excludes talent costs 19

Source: Insomniac, Beacon Economics
IMS Business Report 2016 by KevinWatson.net
3 Clubs & Festivals
Already in 2016, there have been dance festivals
in Cuba, Vietnam, the Philippines & Panama

Manana 2016 Vietnam Electronic

Santiago de Cuba, Weekend
May 2016 Hanoi, Vietnam
April 2016

Day After Festival

Panama City,
January 2016
ZoukOut Boracay
Boracay, Philippines,
April 2016
INDICATIVE
Source: Event websites 20
IMS Business Report 2016 by KevinWatson.net
4 Companies & Brands
Live Nation continues focus on Electronic Music
with recent Warehouse Project share purchase
Company Date Description
Bought shares in WHP and Parklife
Warehouse April Festival based in Manchester, UK
Project* 2016 Partnership to enhance future growth

Acquired festival portfolio of Canadian

February promoter
Union Events
2016 Includes Chasing Summer in Calgary

Takeover of UK festival and venues

August operator
MAMA Group*
2015 Organises Lovebox festival in London

Parent company of NYC based multi-

Founders
May 2016 genre festival The Governors Ball
Entertainment Same location as AEGs Panorama

We continue to see great success in our European festivals such as electronic

events including Electric Daisy Carnival and Creamfields Live Nation Annual Report 2015

Note: * Acquired by LN-Gaiety Holdings Ltd

Source: Live Nation, Industry Press
INDICATIVE 21
IMS Business Report 2016 by KevinWatson.net
4 Companies & Brands
Two major Electronic Music sellers have both
driven 11% YoY growth in key revenue streams

Electronic Music Seller Ministry of Sound

Download Compilation
Revenue Revenue
11% 11.5%
Central America Digital Revenue
was highest up 17% YoY
growing region
Streaming
YoY (+31%)
YoY YoY volumes in
% N. America % 2015 >4.5x
Chg (+14%) and W. Chg higher than
Europe (+10%) year before
also high
No change in #
Vinyl sales up of compilations
60% since 2011 released

Note: * 12 months to May 2016

Source: Industry Organisations
INDICATIVE 22
IMS Business Report 2016 by KevinWatson.net
4 Companies & Brands
DJ Product sales worth $141m+ in USA; Digital
DJ Controllers fastest growing product segment
DJ Product Sales by Type: USA
(YoY % Change in Units Sold 2013-14)
In the USA the DJ Product
14.5% market grew 1.7% to $141m
in 2014, the most recent
year of data available
Digital DJ controllers were
10%
the fastest growing
segment, with unit sales up
% c.15% and retail value up
6.25% YoY
In total, they accounted for
one third of retail value
Turntables also saw strong
0.5% 0% growth, with volume of
sales increasing 10% YoY

Source: The 2015 NAMM Global Report (July 2015) 23

IMS Business Report 2016 by KevinWatson.net
5 IMS Survey
Respondents asked to rate the importance of
seven drivers of future success for the industry
SFX / Beatport The successful sale of SFX assets such as Beatport to
A
Sale organisations who understand the Electronic Music industry

Streaming Soundcloud and other streaming platforms introducing fair

B revenue share mechanisms for artists and labels
Revenue Model
Governments working with promoters and the wider industry
Government
C to develop appropriate legislation and regulation for Electronic
Legislation Music venues
Proportion of A higher proportion of women in key roles within the Electronic
D
Women Music industry, including DJs, artists, and promoters

Approach to A joined-up approach to reducing harm from drugs, involving

E key industry players and governments
Drug Harm
Mainstream Further acceptance, respect and promotion of Electronic
F
Media Music in mainstream media

DJ & Artist
G More transparency and lower inflation in DJ and artist fees
Fees
Source: IMS Survey 2016 24
IMS Business Report 2016 by KevinWatson.net
5 IMS Survey
Most important driver of future industry success
is fair revenue share mechanisms for streaming
Importance of Drivers for Future Success of Industry INDICATIVE

Most Important

Also Highly
Important

Also Important

Very Important Fairly Important Not That Important Not Important At All
Question asked: Please answer how important you think each of the following drivers are for the future
success of the Electronic Music Industry
Source: IMS Survey 2016 (n=163)
25
IMS Business Report 2016 by KevinWatson.net
5 IMS Survey
Female respondents ranked a higher proportion
of women as second most important driver
Importance of Drivers for Future Success of Industry INDICATIVE

Question asked: Please answer how important you think each of the following drivers are for the future
success of the Electronic Music Industry
Source: IMS Survey 2016 (n=163 all respondents, n=32 female respondents)
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IMS Business Report 2016 by KevinWatson.net
6 Industry Overall
Global Electronic Music industry now worth
$7.1 billion 60% more than three years ago
Global Electronic Music
INDICATIVE
Industry Annual Value
+59% Industry growth slowed significantly in the
past year, to 3.5%
6.9 7.1
Outlook is still positive, driven by several
6.2
key factors, including:
1. Streaming growth fastest growing
4.5 music format globally; Electronic Music
$bn well positioned due to demographic bias
2. New regions / markets Electronic Music
festivals and clubs launching in many
high-growth developing markets, such
as South America and China
3. USA market maturity evidence that
recent explosive growth is translating
into sustainable wide-scale appeal
Source: Wikipedia, RIAJ, BPI, Nielsen, Billboard, IFPI, Google, Forbes, Economist, Official Charts Company / BPI,
PWC, EVAR Advisory Services, UK Music, FT, Pioneer, SFX, CIA World Factbook, electronic-festivals.com,
NAMM, MI Salestrak, Reuters, topdeejays.com, YouTube, Soundcloud, industry press, IMS Analysis
27
IMS Business Report 2016 by KevinWatson.net
Want to find out more? Contact us using the info below

Find out more about Contact the author, download

International Music Summits sources used in the report,
across the World, including IMS browse other Electronic Music
Ibiza, IMS Asia-Pacific and IMS Industry insight, and join the
Engage community

Search International Music Visit www.danceonomics.com

Summit online online

@IMSIbiza on twitter @KWdotnet on twitter

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IMS Business Report 2016 by KevinWatson.net