Business Report 2023 by MIDiA Research
Written by IBIZA LIVE RADIO on April 26, 2023
The annual study of the electronic music industry by Mark Mulligan and MIDiA Research for IMS Ibiza 2023
IMS Ibiza announces IMS Business Report 2023
IMS Ibiza, the renowned thought-leadership platform for electronic music, has announced the release of the annual IMS Business Report 2023. The report, which was presented live at the IMS Ibiza summit, is authored by Mark Mulligan of MIDiA Research for the first time. The report aims to provide a definitive view of the current state of the global dance music industry, covering culture, education, industry, and wellness.
This year’s edition includes several exclusive datasets from MIDiA Research who authors the report for the first time, providing a comprehensive account of the electronic music business and cultural music trends across all aspects of the industry. The report highlights significant emerging themes and key financial, economic, and cultural findings to guide and inform the industry.
Dance music industry experiences a strong recovery year in 2022
The report shows that the dance music sector has had a strong recovery year in 2022, resulting in a revenue growth of 34% and a total industry valuation of $11.3 billion, 16% higher than pre-pandemic levels. The recovery is partly attributed to the growth in the creator tools sector, which includes studio and DJ equipment, electronic music instruments, software, sounds/samples, and skill sharing. This sector has become an integral part of the industry, with creators embracing music software and hardware devices more than ever before.
Live sector sees significant growth, with festivals and clubs rebounding
The live sector has also shown significant growth, with Live Nation’s revenues surpassing pre-Covid levels, and festivals and clubs rebounding from their pandemic-induced hiatus, representing nearly half of all dance industry revenues. The music publishing sector is also experiencing growth, with publishing revenues growing more than two times faster than recordings in 2022, underpinned by steady improvements in rates paid to publishers and songwriters.
Growth in the creator tools sector contributes to the recovery
The cultural relevance of dance music is stronger than ever, with its fan base growing specifically on social platforms. TikTok has become the dominant place for fan engagement, with electronic music growing ten times faster than traditional genres like hip hop. The report shows positive indicators for the future of dance music, with more recovery in the live sector and future growth in the publishing sector. The long-term growth of creator culture is also expected to make dance music even more influential on wider music culture.