Investment firm Raine Group has a keen interest in the independent music and DIY artists sectors, having put funding into SoundCloud and Amuse, while advising Downtown on its acquisitions of CD Baby and Fuga. Now the company has produced a report claiming that the artists using these and other companies will see strong growth in their recorded music revenues this year.
“Our work suggests that the independent artist recorded music sector will achieve $2 billion in revenue in the calendar year 2020, representing approximately 9% of the entire global recorded music industry,” claims the report.
The specific figure is $2.12bn, up from estimated revenues of $1.61bn for these artists in 2019. These figures are broken down into three areas: artists using indie-focused distributors, including earnings from YouTube monetisation; artists using ‘mid-tail’ artist services companies; and sync / production music.
The ‘mid-tail’ sector is one that hasn’t been included in previous predictions for ‘artist direct’ revenues, which is why Raine says its figure is much higher than, for example, Midia Research’s estimate that artist direct revenues were $873m in 2019. MBW has some good analysis of Raine’s report here.