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What is the size of the global rap music market? Including music sales, streaming, merchandise, live performance and publishing.
OVERVIEW
Hello there! Thank you for your question asking us what is the size of the global rap music market. The short answer is the size of the global rap market was $15.7 billion as of 2016. Annual revenue and estimated growth numbers through 2021 is $4,076.6 million or $4.08 billion.
Below is a deep dive of my findings.
FINDINGS
Academic databases, corporate websites, industry reports, government reports/databases, regulatory filings, trusted media sites, user forums and review sites were researched in order to compile the most relevant answer to the question.
There are several reports released internationally where we could get global music industry market size by segmentation like physical, performance, digital and streaming but all of these reports does not give segmentation by music type, therefore we could only come up with an estimated value for rap music using triangulation.
For the duration of this project 'rap' and 'hip-hop' will be used interchangeably. To quote Urban dictionary "Ask any two artists, fans, or other assorted members of the rap/hip-hop community to explain the precise difference between the two terms, and odds are you'll get different answers. Even so, most would probably agree that rap describes a type of music while hip-hop refers to a cultural phenomenon that includes graffiti, break dancing, and fashion in addition to music -- or as rapper social theorist KRS-One says, 'Rap is something you do, hip-hop is something you live.' Musically, the only difference between the two is that rap always contains the vocal element of rhythmically spoken rhymes while hip-hop can be purely instrumental in nature."
Additionally, after extensive research, we were unable to find a forecast report to 2022. Therefore, CAGR per segment is given below with forecast until 2021.
First, we determine global market size and segmentation: The latest report of IFPI released in 2017, with recorded figures accounting for 2016 are quoted below.
Figures as at 2016:
Total industry revenue is at $15.7 billion up by 5.9% from 2015
Physical accounts for $5.4 billion (34%)
Digital at $7.8 billion (50%)
Performance rights at $2.2 billion (14%),
Synchronization at $0.4 billion or $400million (2% total)
Then, we consider percentage share of rap music (R&B/hip-hop) from the total global market size. Since there are no available sources or pre-compiled reports for this for global market, we will use a 2016 US report from Nielsen released by angrymobmusic.
Total Consumption by Format: this gives the percentage share of each music genre consumption and looking at the percentage share of R&B/hip hop. Total percentage of consumption is at 18.2%, which accounts for the second highest share. (if we are to break it down by albums, track and streams albums has 15.1% consumption, tracks has 19.7% consumption, and streams has 21.1%).
Calculations below:
Calculation and triangulation by segment for hip-hop music using data from Statista and 2016 US report from Nielsen using millions.
Synchronization= $500 million *0.182 = $91 million
Performance rights = $2,400 million *0.182 = $436.8 million
Physical = $8,700 million *0.182 = $1,583.4 million
Mobile music = $500 million *0.182 = $91 million
Digital music streaming = $6,700 million *0.182 = $1,219.4 million
Digital music downloading = $3,600 million *0.182 = $655.2 million
Estimated Total Revenue for R&B/Hip Hop = $4,076.6 million or $4.08 billion
Music streaming is at 20.7%
Live music at 3%
Physical music at -11.6%
Digital downloads at -19.2%
Statista presents data on the growth of the global music revenue between 2016 and 2021, broken down by category. The source projected that digital download revenue would decrease by 19.2% annually in the presented period. Music streaming revenue worldwide is project to almost double from $3.3 billion US in 2015 to $6.22 billion US in 2020. The majority of this revenue comes from subscriptions, which generated $2.3 billion US in 2015, and ad-supported revenue contributed a further $600 million US.
OTHER USEFUL INFORMATION
According to DJBooth, "considering hip-hop shares much of the same millennial demographic that mobile gaming companies are actively trying to engage, 'crossing over' is a no-brainer." Rappers, on the other hand, while constantly looking for new ways to connect with fans are also looking for new ways to make money. With these next-level developments in the works, hip-hop’s involvement in the $34 billion mobile gaming market will make some very smart participants some very real money.
Based on statistics from BrandonGaille, marketing expert, "$500 billion is the amount of annual spending power that the hip hop demographics are able to contribute every year."
CONCLUSION
To wrap it up, review of the data revealed that the size of the global rap market was $15.7 billion as of 2016. Annual revenue and estimated growth numbers through 2021 is $4,076.6 million or $4.08 billion.
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