According to IMS Business Report, the future is bright for dance music as revenue grows more than a third from the pre-pandemic period.
Like many other industries, the music industry was heavily impacted by COVID-19. As the world recovers from the global pandemic, music festivals and live events have resumed, and artists have started to tour again. The positive indicators of recovery in the past year were well-reflected in the latest IMS Business Report, which builds upon the achievement of previous years and offers a comprehensive perspective on the current state of the worldwide dance music industry. In the 14th edition of the IMS Ibiza held at the Destino Pacha Ibiza Resort on April 26-28, the annual conference partnered with MiDiA Research and its team of analysts to center its focus on everything related to tech and entertainment in the global dance community.
Presenting live on the first day, MIDiA Research MD and analyst Mark Mulligan shared that the strong recovery year for the dance music sector and the entire music industry fuelled a 34% growth in revenue and up across all categories, with the total industry valuation at $11.3 billion, a positive trend of 16% higher than pre-pandemic.
This figure marks more than a third in jump from the previous year thanks to the growth in the creator community and live sector. From areas like the resurgence in creator tool sectors to building in-revenues from studios, DJ equipment, electronic music instruments, software, sounds, samples, and skills sharing, the increase in the number of creators who are embracing music tools and sharing knowledge with others in the online communities have brought about a significant impact in the music industry.
In addition, the cultural significance of dance music has reached new heights. This is fueled by the explosive growth of the fanbase and social media platforms. Electronic music has emerged as a potent force, with its popularity spreading immensely across digital channels. It was reported that TikTok is growing ten times faster for EDM fan engagement than other traditional genres like Hip Hop.
It is also a positive sign that the live sector has demonstrated remarkable growth, exceeding previous records as Live Nation‘s revenues surpassed pre-Covid levels, and these events generated nearly half of all dance industry revenues in 2022. Besides, the music publishing sector is spearheading the industry’s growth as revenues grew more than two times faster than recordings in 2022, owing to the steady rates paid to songwriters and publishers.
Overall, while the dance music industry has faced significant challenges in recent years, the IMS Business Report offers many reasons for the community to be optimistic about the future. With a strong recovery in the live sector, continued growth in the creators’ economy, and expanding growth of the publishing sector, the dance music industry is poised to be a major player in the global music industry in the coming years.