EDM: Dancing to a Growth Beat
Electronic dance music (EDM) experienced strong growth in 2023 after a very strong 2022, according to the 2024 IMS Business Report.[1] Live music represented the industry’s strongest growth segment. The report highlighted that EDM’s growth eclipsed that of the broader global music industry.
Overall Strong Growth for the Music Industry
The report noted that the global recorded music industry's revenues were $31.9 billion in 2023, a 10% increase over 2022. Streaming was $21.9 billion of that total and grew 10% over 2022’s total. Music publishing experienced growth of 10% over 2022.
Despite being the largest, Spotify only controlled a 32% market share of the streaming market. Tencent and Apple Music, the next two largest, had a 14% and 13% market share, respectively.
EDM Dances to Growth
EDM saw revenue growth of 17% to $11.8 billion in 2023. This was on top of the 34% growth that EDM experienced in 2022 and may indicate the results were not a one-time jump in response to the earlier COVID-related shutdowns.
Beatportal, an online electronic music-oriented music store, noted that EDM was the fastest-growing genre on its platform (its genres are Rock, Latin, Hip-Hop, and Electronic).
Live Music Dominates EDM
The report noted that Ibiza club ticketing revenue reached €141 million in 2023, a 14% increase over 2022 and 76% over 2019. Average ticket prices increased to €51 from €44 in 2022, a 16% increase. EDM music festivals and clubs dominate the segment’s revenue.
EDM music creators note that DJing is where they make the bulk of their money.
EDM Fans Are Typically Superfans
Superfans generally engage with their favorite music in multiple ways and spend more time and money on music than the average music fan.
EDM fans are more likely to be superfans. Compared to the average music fan, on average, they spend about 31% more on live music and 20% more on recorded music. They also spent an average of 10.3 hours per week listening to music, a 12% increase over 2022.
Growth Within EDM
The four largest markets for EDM are Germany, the US, Australia, and the UK. However, South Africa is becoming a new hot spot for EDM, with nearly twice as many total monthly listeners as the total population.[2]
Within EDM, techno and house are the dominant genres, but AfroHouse is building momentum rapidly.
Small but Powerful Segment of the Music Industry
Although EDM is a small segment of the overall global music industry, it is growing rapidly and, given its fan engagement, has the potential to deliver profits to companies with exposure to the EDM genre.
How May Individuals Gain Exposure to Companies in the EDM Industry?
The MUSQ Global Music Industry ETF (MUSQ)
The MUSQ Global Music Industry ETF (MUSQ) seeks to provide investment results that, before fees and expenses, correspond to the total return performance of the MUSQ Global Music Industry Index (MUSQIX). The MUSQIX Index is designed to provide exposure to global, publicly traded companies and royalty funds with a core business interest in the global music industry.
MUSQ may provide individuals with an attractive vehicle to gain exposure to the global music industry.
[1] All data sourced from: The IMS Business Report, 2024, MIDIA & IMS Ibiza, April 2024
[2] The metric compares the sum of total monthly listeners to total population.
MUSQ Global Music Industry Index ETF is offered by prospectus. Carefully consider the investment objectives, risks, charges, and expenses. This and other important information can be found in the MUSQ ETF prospectus, which should be read carefully before investing and can be obtained by visiting https://musqetf.com or by calling 1-855- MUSQ-ETF(687-7383).
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