In a constantly evolving musical landscape, studies like PROMUSICAE’s “Radiography of the Recorded Music Market in Spain 2023” are essential for understanding the dynamics and trends that define the future of the industry, both in Spain and globally.
Overall market growth
In 2023, the music industry in Spain reached a revenue of 520 million euros, marking a 12.33% increase from the previous year. This growth consolidates a very positive trend for the music industry, highlighting streaming as the major consumption type, which increased by 16.5% compared to 2022. Music remains one of the main forms of entertainment, reaching 85.7% of the population, according to the Ministry of Culture’s survey of cultural habits and practices (2021 – 2022).
In Spain, music is one of the primary forms of entertainment, engaging 85.7% of the population in 2022
Additionally, we are experiencing a phase of increasing hybridization between different entertainment sectors. The audiovisual industry released various artist documentaries in 2023, and the video game industry is expanding to new audiences. This crossover of sectors underscores the importance of understanding the market to negotiate successful synchronizations. Figures support this, as 30% of total revenues come from music synchronization in various audiovisual formats.
As PROMUSICAE explains in its study, “Although they still represent a small part of the revenues, this confirms how music is in an increasingly important relationship with other cultural industries such as audiovisual and video games.”
According to the report, the growth in digital format revenues originates from YouTube, specifically since the creation of Content ID in 2007, demonstrating the essential nature of this tool for the industry. Additionally, the emergence of Spotify a year later (2008) was the necessary support for reaching the current growth figures of the digital market.
Recommended Reading: YouTube Content ID. The way of monetization
A matter of formats
Based on the presented data, it is clear that digital music led in 2023. Generating 403.5 million euros, the digital market represented more than 86% of the music consumed in Spain, with audio streaming accounting for 98.8% of the total (329 million euros) and video streaming 69 million.
However, the physical format has not been left behind. The exponential and constant growth of streaming foretold the disappearance of this format, but in recent years it has unexpectedly resurged, generating 62 million for recorded music in Spain.
At Republic Network, we have often discussed the rise in vinyl sales since the end of 2022, becoming an essential part of new releases from renowned artists (accounting for 56.69% of revenues in 2023). Nonetheless, it is worth noting the return of the CD (Compact Disc), which represented 42.50% of physical format sales in 2023.
It is interesting to highlight that the majority of these sales come from South Korea, where a well-crafted, exclusive, and collectible product is fundamental for K-Pop (a genre that has positioned the Asian market as 49% of the global physical market, generating 115 million in revenues from physical albums in 2023).
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Expansion
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and
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Day
The global presence of spanish music
The report highlights that Spanish music continues to have a significant presence both in the national and international markets. Internationally, Spanish artists represent a large part of music consumption, occupying 32% of the top 100 most listened-to songs in 2023, while Latin American artists represent 46%.
The export of Spanish music is booming. As explained in Spotify’s latest Loud & Clear report, more than 50% of royalties generated by Spanish artists came from consumption outside Spain.
Spotify's recent Loud & Clear report reports that more than 50% of the royalties generated by Spanish artists have been from consumption outside of Spain
This success is reflected in the fact that Spanish-language music is one of the main growth drivers on global platforms like Spotify and YouTube, where it has seen significant increases in listens and views over the past few years.
Latin music becomes culture
Latin music has continued to consolidate its presence in Spain, with reggaeton being the dominant genre. In 2023, 70% of the most listened-to songs in Spain were urban genre, led by Latin artists like Bad Bunny and Karol G.
This trend was particularly evident in Madrid, with Karol G selling out four shows at the Bernabéu and reaching a million viewers on YouTube for the live stream of her last concert in Spain. This strategy has certainly made these events a milestone in current music history.
2023 was the year when Latin music, especially reggaeton and trap, captured a massive audience in Spain. This phenomenon is reflected in the charts, where Latin artists frequently occupy the top positions, even with songs from previous years.
The influence of Latin music has also extended to fashion, dance, and youth culture in general, showing its deep and increasingly ingrained impact on Spanish youth.
Among the artists frequently appearing on the charts are Feid, Karol G, Saiko, Bad Bunny, and Shakira
All this clearly indicates that Latin music has contributed to the diversification of the musical landscape in Spain. Collaborations between Latin and Spanish artists are creating a dynamic and constant exchange, not only musically but also culturally.
The future of the music market
The report “Radiography of the Recorded Music Market in Spain 2023” by PROMUSICAE reveals solid and sustained growth in the music industry, driven mainly by digital consumption. Streaming continues to dominate the market, but the resurgence of physical formats demonstrates that diversity in offerings remains key to the industry.
It is also worth noting that, although the United States remains predominant in the global music market, industries such as the Asian and Spanish-speaking markets (Spain and Latin America) are beginning to take their place as main powers in the music sector, occupying an increasingly larger percentage among the most listened-to songs worldwide.
Looking to the future, we face new challenges brought by significant technological advances witnessed in 2023, particularly the development of Artificial Intelligence. AI, which already played a crucial role in personalizing consumption through algorithms, has evolved and introduced new ways of recording and producing music.
While this promises creative opportunities, it also raises new challenges regarding intellectual property and copyright. The music industry faces new ethical debates, but initiatives such as the European Union’s directive to regulate AI and the No Fakes Act in the United States are important steps towards greater transparency and rights protection in this new technological era that will unfold in the coming years.
Read the full report here: https://www.promusicae.es/descarga-informes/radiografia-del-mercado-de-la-musica-grabada-2023-n263/
