By CultureBanx Team
- Goldman Sachs forecast music revenue is going to reach $131B by 2030
- Black listeners are the largest user group for music streaming services
Streaming platforms take center stage in Goldman Sachs (GS -0.51%) latest music revenue forecast, with estimates it’s going to more than double to about $131 billion by 2030. Currently music streaming sales are dominated by top R&B and hip-hop artists such as Drake, Kendrick Lamar, The Weeknd, Migos and Cardi B. Music publishers and labels also stand to profit greatly from the rise of streaming, led by black listeners who are the largest user group.
Why This Matters: R&B and hip-hop are music’s most consumed genre. In 2017, Goldman found live music, publishing and recorded songs made $26 billion, $6 billion and $30 billion respectively. The firm estimates by 2030 these categories are going to reach $38 billion for live music, $12.5 billion for publishing, and the biggest gain will be seen in recorded songs at $80 billion. Recorded songs which fall into the streaming category will grow the most especially if we look at Nielsen’s Music Mid-Year 2018 Report, U.S. that notes music consumption rose 18.4% last year.
When it comes to the black community they are far outpacing millennials and spend about $173 annually on purchased music
Millennials are the main group helping to revitalize the music industry. Goldman wrote this faction is willing to shell out a hefty portion of their yearly budget on music, to the tune of $163. Specifically when it comes to the black community they are far outpacing millennials and spend about $173 annually on purchased music, according to Nielsen.
Music labels have and will continue to benefit greatly from streaming. Case and point, take Universal Music Group and its family of labels which include Capitol Music Group, Island Records, and Def Jam just to name a few. They have a deep roster of heavy hitters like Rihanna, Kendrick Lamar, Drake and Migos. Revenues for UMG during the first half of 2018 amounted to more than $3 billion, led by a 34.3% spike in streaming revenues.
Situational Awareness: Investors may have the chance to capitalize on music downloads in a new innovative way as Swiss-Asia kicked off its royalty backed music note amidst a volatile market. Four of the biggest holdings that make up the royalty backed note include Sony (SNE -8.38%) Spotify (SPOT +2.31%), Vivendi (VIV.PA +0.67%) and Tencent Music (TME 8.03%).
CBx Vibe: “Money” Cardi B