France is ‘struggling’ to reach the premium subscription levels of other major music markets. Is TikTok the partial cause?
France, the world’s fifth-largest music market, generated recorded music sales of 920 million euros ($967 million) in 2022, according to local trade body SNEP.
However, despite marking the market’s sixth consecutive year of growth, 2022 has seen a slowdown in that growth band, with market revenues only growing 6.4% annual.
During the previous year, 2021, recorded music sales in France increased 14.3% By year.
Paid registrationstreaming-based, has generated revenue of €426 million won ($448 million) in 2022, is from France the main driver of music sales recorded last year, develop 11% annual.
Streaming, from both ad-supported and paid subscription services, generates revenue €486 million ($511 million) in France in 2022, up 13.5% By year.
Meanwhile, by the end of 2022, according to SNEP, there were 11 million won subscription account payments in France, increased by +1.0 million YoY from 10 million by 2021. (Those accounts are shared by 16 million users, through family plans, etc.)
Year-on-year growth in the number of registered accounts in France has slowed compared to 2021, as the number of paid subscriptions increases +1.3 million won compared to 2020.
Indeed, the 16 million premium subscription account users in France last year equates to about a quarter of the country. estimated total population (≈66 million).
These numbers have clearly raised concerns at the major record companies – the biggest members of SNEP – and you can see why: IFPInewest of Global Music ReportFrance is the fifth largest recorded music market in the world in 2021, after the United States (1), Japan (2), the United Kingdom (3) and Germany (4).
SNEP stated in today’s annual update: “CHEAPRegardless of age group, subscription-based streaming is struggling to reach the levels of other major music markets in France.
“Platform and [labels] Everyone has a big challenge at hand: to convincee consumers, young and old, make changes to subscription-based services.”
So what is the cause of the subscription streaming service’s “struggle” continues to grow in France?
One contender is TikTok — and its growing popularity among young consumers in the territory.
“Record companies are scaling the music experience and income streams, adjusting their strategies… [including] redefine the role of TikTok, the massively used app that diverts consumers away from the subscription-based services that drive today’s music business model.”
Alexandre Lasch, SNEP
Citing an IFPI consumer study from 2022, SNEP reports that while 77% the number of people surveyed said that they discover new music through TikTok, 45% of young people in France, between the ages of 16 and 24,”claims to spend more time on TikTok than on streaming music services“.
SNEP CEO Alexandre Lasch, in a statement accompanying the new annual report, said that “the massive use of TikTok redirect consumers from subscription-based servicesdriving force of today’s music business model”.
And as SNEP highlighted France’s challenge to convince more music consumers to pay for music subscriptions, it noted in its report that TikTok and short-form videos “have reshuffled the music streaming related articles”.
Lasch’s comments and SNEP’s report on France’s “struggling” subscriber streaming growth come amid calls by some in the music industry for TikTok to pay more owners. owns the copyright to their use of music on its foundation.
Many people in the music industry think that TikTok, including more than 1 billion monthly active users globally, growing thanks to the popularity of music on its platform.
News of the possibility that TikTok is “diverting consumers” away from properly monetized music on subscription platforms like Spotify or apple music in one of the world’s largest recorded music markets will only intensify calls to change TikTok’s royalty payment model.
The major record companies will likely be watching developments in France very closely as they step in Next round of negotiations with ByteDance-Owned video platform.
“Record companies are scaling the music experience and income stream, adjusting their strategies to match an ever-changing playing field.”
Alexandre Lasch, SNEP
In his full statement, SNEP CEO Alexandre Lasch, said: “Record companies are scaling the music experience and income streams, adjusting their strategies to fit a playing field. constant innovation: limit streaming manipulation that distorts the rules of the game; redefining the role of TikTok, the massively used app that diverts consumers away from the subscription-based services that drive today’s music business model; integrates countless applications of artificial intelligence that have influenced the way music is created and listened to.”
Elsewhere in SNEP’s year-end report, it was revealed that, like in other mature music markets, vinyl sales continued to grow, reaching 5.4 million won units sold in 2022, generating sales of 89 million euros for the French recorded music market.
That 89 million euros represents the growth of 12.65% annualsignificantly lower than the YoY growth of the previous year (+54.9%).
Elsewhere, the SNEP report highlights the success of domestic music in the market in 2022, noting that ‘French Music Production’ has made 77% in the Top 200 best-selling albums last year.
Meanwhile, artists from France make up 16 of the Top 20 most listened to and most bought artists in France in 2022.
France’s annual recorded music sales results come the same week as its neighboring country, Spain publish its equivalent.
According to Spain’s recorded music industry organization, Pro Musicae, the number of paid subscriptions in the Spanish market has almost doubled compared to that in France last year on a percentage basis. – increase 18% annual ARRIVE 5.2 million won.
Meanwhile, in Japan, the world’s second-largest recorded music market, revenue from subscription streaming in 2022 reached 75.62 billion yenconvert to 575 million USD at an average annual exchange rate (IRS) and represents a revenue growth of 19% annually through paid music services such as Spotify And Apple Music.
- All EUR-USD conversions in this story have been performed at the annual averages provided by the US Internal Revenue Service (IRS).
Global Music Business