Luminate Midyear Report

2023

Luminate Midyear Music Report

Contents

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Midyear in Metrics

Bands, Brands & Super Fans

Locals, Lyrics & Languages

Impacts of New Tracks

Midyear Charts

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Date range for consumption data: 12/31/21-6/30/22 vs. 12/30/22 - 6/29/23

Vol. Change

+30.8%

2.5T

Global Metrics

Total On-Demand Song Streams (Audio + Video)

Total On-Demand Audio Song Streams

Vol. Change

+22.9%

3.3T

1.6T

2.0T

U.S. Metrics

+ 12/30/22-6/29/23 (AS COMPARED TO 12/31/21-6/30/22) * SEA (STREAM-EQUIVALENT ALBUMS): 1250 PREMIUM STREAMS = ONE ALBUM // 3750 AD-SUPPORTED STREAMS = ONE ALBUM; TEA (TRACK-EQUIVALENT ALBUMS): 10 DIGITAL TRACKS = ONE ALBUM ** CATALOG = 18 MONTHS OR OLDER AND HAVE FALLEN BELOW NO. 100 ON THE BILLBOARD 200 CHART AND DON’T HAVE A SINGLE FROM THE ALBUM THAT IS CURRENT ON ANY OF BILLBOARD’S RADIO AIRPLAY CHARTS ON-DEMAND VIDEO SONG STREAMING INCLUDES OFFICIAL, SONG UGC AND NON-SONG UGC

2022+

2023+

Introduction

In March of this year, Luminate’s data revealed that the global music industry surpassed ONE TRILLION streams at the fastest pace yet from the start of a calendar year – taking only three months. That milestone was reached a full month earlier in 2023 than it was in 2022. Our data also revealed that physical sales were up across all formats in Q1 and that ISRCs (tracks) were being created and uploaded at higher volumes and pace than in previous years. In the following report, we explore these trends and how they are defining the state of the music industry in the first half of 2023. As always, we hope our findings are both informative and enlightening. Luminate is committed to being a trusted, objective and accurate data source reflecting and serving the entertainment industry at-large, helping to bridge gaps in any business planning. The Charts included in this report are presented by Billboard, Luminate’s exclusive chart partner for more than three decades.

Now more than ever, fans hold the power of influence — shaping the ways their favorite artists make, market and release music. And while our data shows that collectable-loving super fans are still a significant part of the years-long vinyl sales growth trend, it’s significant to note that the growth in Direct-to-Consumer (D2C) sales of music from artists’ stores are up +20% so far this year, with D2C vinyl sales up over +25%. This stat only highlights the ever-increasing power of the super fan. What is a super fan? For the purposes of this report, Luminate’s research methodology defines a “super fan” as a music listener aged 13+ who engages with an artist and their content in multiple ways, from streaming to social media to purchasing physical music or merch items to attending live shows. More specifically, the super fans who were identified in the studies referenced in this report were participants that self-reported engaging with their favorite artists in 5+ ways. The findings of this report further dive into the behaviors of these super fans, who account for 15% of the general population 13+ in the U.S., and how they are influencing the evolution of music and artists’ relationships with their listeners. A few insights revealed by the report include the fact that physical music buyers, people who purchase CDs, cassettes, or vinyl, are more than 2x as likely (+128%) to be music super fans. They also spend more than 80% more money on music each month than the average music listener. Understanding these consumer behaviors and evaluating them in the context of our engagement data fuels the useful insight of this report and hopefully, makes it a valuable tool for industry experts making a wide range of business decisions; from how to price vinyl to which artist/brand partnerships are most valuable and everything in between.

It’s no secret that non-English language music has grown in popularity, both in the U.S. and globally over the past ten years, especially within the Latin and K-Pop genres, both of which have both seen unprecedented sales and streaming growth. But how many music listeners are actually engaging with that content? According to Luminate’s Music 360 research data from Q2 2023, 40% of U.S. listeners listen to music in a language other than English. Spanish, French, Korean, Japanese, Italian, German, and Arabic, in that order, are the most popular music languages among U.S. music listeners. Boundaries continue to be broken across language and geography in this digitally-driven era. Another example is visible in Country. The Country genre has historically been consumed by English speaking Americans. The first half of 2023 has seen Country go global. In March, Luminate reported that Country music had its biggest streaming week ever with 2.22 billion U.S. On-Demand audio (ODA) streams, partially due to the release of Morgan Wallen’s One Thing at a Time, which delivered over 20% of the genre’s streams during its release week. The genre reached a new high the week ending 6/1/23 with 2.26B U.S. ODA streams. Simultaneously, we’re seeing Country streaming boom across multiple international markets. Philippines, Indonesia, India, Brazil, Mexico, Germany, and Vietnam, none of which are primarily English-speaking territories, are all Top 10 markets for Country music consumption in the first half of 2023. This report breaks out these numbers and provides analysis on the demographics of listeners across the genres and the globe bringing these new trends into focus.

In May, Luminate revealed that in Q1 of 2023 an average of 120K ISRCs (new tracks registered to a unique number) were uploaded to the streaming platforms every day, representing a 28% increase over 2022’s whole year average of 93.4K ISRC’s per day. When we include the Q2 2023 activity, our daily average is now 112K songs. In this report we breakdown how many of those ISRCs come from major label distribution vs. the rest of the industry. We also know this conversation needs to include the AI of it all, especially as intelligent tools increase the speed with which music can be made and released. One of this year’s most infamous songs,“Heart on My Sleeve” by Ghostwriter, was produced with the use of AI, which generate soundalike vocals that emulated the artists Drake and The Weeknd. The song, which initially took off in the U.S., spread quickly to other markets and received more than 30K streams per day in a two-week period from Australia, Canada, Germany and the United Kingdom alone — forcing the music industry to consider AI’s potential global impact. Beyond the deep fake hits this report also examines the increasing demand for mood music, which creators using AI can produce more easily, and how audiences’ behaviors tied to mood and music are changing.

Bands, Brands & Super Fans

Locals, Lyrics & Language

The Impacts of New Tracks

2023

Midyear Metrics

12/30/22 - 6/29/23 (As Compared To 12/31/2021-6/30/2022)

Vol. Change

+12.3%

159.7T

142.2B

On-Demand Streaming: Video

Vol. Change

+13.4%

538.9M

475.4M

Total Album Consumption

Album + TEA + On-Demand SEA*

Vol. Change

+13.4%

497.5M

438.9M

Total Digital Music Consumption

Digital Albums + TEA + On-Demand SEA*

Vol. Change

+7.9%

50.6M

46.9M

Total Album Sales

Physical + Digital

Vol. Change

+13.5%

616.5B

543.2B

On-Demand Streaming: Audio

Vol. Change

+15.0%

713.5B

620.2B

On-Demand Song Streaming

Audio + Video

Vol. Change

+5.8%

212.1K

200.5K

Cassette Sales

Vol. Change

+13.3%

41.6M

36.7M

Physical Album Sales

Vol. Change

+3.8%

17.5M

16.9M

CD Album Sales

Vol. Change

+21.7%

23.6m

19.4M

Vinyl LP Sales

2022+

2023+

U.S. Catalog vs. Current Consumption

2022+

2023+

Vol. Change

+11.8%

146.8M

131.3M

Current Total Album Consumption

27.2%

27.6%

Current Share

Vol. Change

+13.9%

392.1M

344.1M

Catalog Total Album Consumption

72.8%

72.4%

Catalog Share

TREND 1

Bands, Brands & Super Fans

D2C Sales Up +20% Over 1H 2022 With D2C Vinyl Up 26%

Total Sales

4.4M

YOY % Change

+20%

VINYL

CD

CASSETTE

YOY % Change

+26%

2.6M

YOY % Change

-14.6%

62K

YOY % Change

+15%

1.7M

click on circles to toggle info

Genre Share of Total D2C Sales

D2C Product Splits H1 2023

Counter to Trends in Streaming Consumption, Over 60% of Total D2C Product Sales are Current Releases and +75% of Both CDs and Cassettes Are Current

Total D2C

VINYL D2c

CD D2c

CASSETTE D2c

Gen Z are +33% more likely to plan on buying artist apparel in the next six months, and +32% more likely to plan on purchasing accessories compared to the US General Population (U.S. Gen Pop)

60% of the U.S. Gen Pop aged 13+ have purchased artist merchandise in the past

The most popular place of purchase among U.S. Gen Pop aged 13+ for merch is from an in-person live music event (at 37% of Gen Pop)

42% of U.S. Gen Z agree that they "wish artists provided more merchandise options so that I can show my support for them and their work"

SOURCE: LUMINATE INSIGHTS ARTIST & GENRE TRACKER WAVE 8 6/23 LUMINATE INSIGHTS US MUSIC 360 WAVE 2 6/2023

D2C, Merch & Where to Buy

*SUPER FANS ARE THOSE WHO ENGAGE W/ ARTISTS AND THEIR CONTENT IN 5+ DIFFERENT WAYS. SOURCE: LUMINATE INSIGHTS US MUSIC 360 WAVE 2 6/2023

of the General population are Super Fans

15%

-3.4%

SOURCE: LUMINATE INSIGHTS ARTIST & GENRE TRACKER WAVE 8 2023

Knowing your audience is a priority as different fan groups have different price points

BOYGENIUS: MIKAYLA LOBASSO SOURCE: LUMINATE MUSIC CONNECT DATA

*SUPER FANS ARE THOSE WHO ENGAGE W/ ARTISTS AND THEIR CONTENT IN 5+ DIFFERENT WAYS. SOURCE: LUMINATE INSIGHTS US MUSIC 360 WAVE 2 6/2023

Live

Cost of Tickets Is Now the #1 Concern Over COVID

SOURCE: LUMINATE INSIGHTS US MUSIC 360 THROUGH WAVE 2 6/2023

Super fans spend +80% more money on music each month than the average U.S. music listener

+80%

Physical music buyers (Vinyl / CDs / Cassettes) are more than 2x as likely (+128%) to be music Super Fans

+128%

U.S. Millennial music listeners spend +22% more and Gen Z music listeners spend +13% more on monthly music categories compared to the average U.S. music listener

+22%

K-Pop fans spend +75% more money on music categories per month than the average U.S. music listener

+75%

Afropop/beats fans spend +121% more money on music categories per month than the average U.S. music listener

+121%

EDM fans spend +63% more money on music categories per month than the average U.S. music listener

+63%

NF

NF: JON SWEET

All Categories Up, But Who's Buying?

Direct to Consumer (D2C)

SUPER FANS

PHYSICAL

Physical Product U.S. Store Strata

Shr Pts over 1H 2022

+4.2%

Shr Pts over 1H 2022

CD Buyers

Cassette Buyers

Vinyl Buyers

Physical Music Buyers (Overall)

Gen X (104) LGBTQ+ (112) Urban (110) Spend (181)*

Gen Z (138) Male (146) Urban (200) Spend (259)

Gen Z (133) LGBTQ+ (124) Urban (123) Spend (201)

Gen X (100) LGBTQ+ (112) Urban (116) Spend (177)

The Price of Vinyl

$29.40

$25.80

$19.60

Jazz Fans Optimum Vinyl Price

$29.40

'80s Decade Listeners Optimum Vinyl Price

$25.80

Boomers Optimum Vinyl Price

$19.60

Compared to Other Major Genre* Fans, K-Pop Fans ...

*major genres include Pop, R&B, Hip-Hop/Rap, Rock, Country, Latin, EDM Christian/GospelSOURCE: LUMINATE INSIGHTS US MUSIC 360 WAVE 2 6/2023

K-Pop fans are +69% more likely to purchase a vinyl record in the next 12 months

Almost 1 in 4 K-Pop fans have purchased a cassette in the past 12 months

K-Pop fans are +46% more likely to have purchased a CD record in the past 12 months

K-Pop fans are +67% more likely to be motivated to purchase music by a desire to "show support" for artists

+69%

23%

+46%

+67%

Average Concert-Goer Spends +40% More on Concerts in May 2023 than September 2022

Average Monthly Expenditures on Concerts

Barriers to Live Event Attendance

Beyoncé’s Renaissance World Tour

Beyoncé: Christopher Polk SOURCE: daily LUMINATE COUNTRY-LEVEL DATA

Beyoncé Total On-Demand Streams by Region

Kickoff in Stockholm on May 10 drove Global interest with the quickest streaming growth in S. America, Europe and N. America

Catalog

Current

N. America

Europe

LATAM

Asia

Australia & New Zealand

South Africa

Total OD Streams (Audio & Video) 5/7-9/23 vs 5/10-12/23

34.7% Chg Growth

48.7% Chg Growth

65.8% Chg Growth

12.1% Chg Growth

24.5% Chg Growth

25.5% Chg Growth

Music Fans Make Great Audiences for Brand Partnerships

commercial parternships

SOURCE: LUMINATE INSIGHTS US ENTERTAINMENT 365 - WAVE 6 (2023) B4. WHICH OF THE FOLLOWING PRODUCTS OR SERVICES, IF ANY, HAVE YOU PURCHASED IN THE PAST 3 MONTHS? BASE: TOTAL RESPONDENTS (2000); POP GENRE MUSIC LISTENERS (577); SPORTS FANS (773)

more likely than Gen Pop

+49%

+46%

+28%

Pop Music Listeners

Sports Fans

TREND 2

Locals, Lyrics & Languages

SOURCE: 2023 US MUSIC 360 WAVE 2 6/2023

69%

Of U.S. music listeners listen to music from artists originating from outside the U.S.

Of Gen Z and Millennial music listeners listen to music from artists originating from outside the U.S.

72%

SOURCE: LUMINATE INSIGHTS US MUSIC 360 WAVE 2 6/2023

of U.S. listeners listen to music in a non-English language

40%

U.S. Listeners Engaging with Foreign Content

Top Languages for U.S. Music Listening

U.S. Listeners Engaging With Non-English Content

*Streaming Share of Top 10k Total On-Demand (audio & video) tracks

Top Languages Around the World

Share of English Language in Top 10K Tracks Declining

click on map for more info

United States

Colombia

Global

Portugal

South Africa

Switzerland

Indonesia

About Luminate

Luminate is the preeminent entertainment data and insights company, unleashing access to the most essential, objective, and trustworthy information across music, film, television, gaming, short-form video and more. Luminate’s databases house information compiled from over 500 verified sources, managing more than 20 trillion data points.

About Luminate

click on circles TO READ about each trend

SOURCE: Luminate Country-Level Data

SOURCE: LUMINATE DATA BASED ON TOTAL ON-DEMAND (AUDIO + VIDEO) STREAMING IN EACH country

Streaming Growth Rate by Regions Outside of U.S. and Canada

Asia +107% in Total On-Demand (Audio + Video) streams over this period last year

Australia & New Zealand YOY Growth Rate

55%

Europe YOY Growth Rate

57%

Asia YOY Growth Rate

107%

South African Region YOY Growth Rate

83%

LATAM YOY Growth Rate

70%

Country Music Reaches New Streaming Peak

Highest weekly total ever for Country U.S. On-Demand Audio streaming the week ending 6/1/23

2.26B

Morgan Wallen’s One Thing at a Time accounts for 9.6% of all Country On-Demand Audio streaming since its 3/3/23 release

Younger Fans Are powering Country artists to new streaming heights

The New Country Consumer

Bailey Zimmerman

Luke Combs

Zach Bryan

Morgan Wallen

Average Country Fan

Music Streaming

AM/FM Radio

#1 LISTENING FORMAT

Gen Z

Biggest Fan COhort

Gen Z/ Millennial

Millennial

Boomers

Gen Z

HOVER OVER region names for more info

Gen Z Country Listeners are +32% more likely to discover new music through video and/or audio streaming services than the avg U.S. consumer and +11% more than other Gen Z music listeners

+32%

Gen Z Country Listeners avg monthly spend on physical purchases (merch, music, gift cards) ($32) is +39% more than the avg U.S. music listener ($23)

+39%

Gen Z Country Listeners are +92% more likely to listen to playlists shared by family and friends than the avg U.S. consumer and +37% more likely than other Gen Z music listeners

+92%

SOURCE: LUMINATE INSIGHTS ARTIST & GENRE TRACKER WAVE 8 6/2023 LUMINATE INSIGHTS US MUSIC 360 WAVE 2 6/2023

Country Music in Other Markets

HOVER on map for more info

Top 500 U.S. Country Songs

Total OD Streams in Ex-U.S. Country YTD Week Ending 6/29/23

Index of Country Genre Streaming

Streaming of U.S. Top 500 Country Songs Through Week Ending 6/1/23

Overindex Global Consumption

Underindex Global Consumption

INDEX

SOURCE: LUMINATE COUNTRY-LEVEL DATA

Afrobeats*

World Genre Snapshot

more likely to be Gen Z

+27%

more likely to identify LGBTQ+**

+63%

non-Black

62%

*Profile reflective of U.S. consumers identifying as Afropop listeners **COMPARED TO GEN POP 13+ LUMINATE INSIGHTS ARTIST & GENRE TRACKER WAVE 8 6/2023

2.5B

US On-Demand Audio (ODA) streaming YTD of Afrobeats (+34% over 2022)

Burna Boy

Eslabon Armado

10.4B

US On-Demand Audio (ODA) streaming YTD of Regional Mexican music (+50% over 2022)

Regional Mexican

Snapshot of Genres Around the WorlD

(Darker Colors Indicate Greater Listener Proportions)

non-Hispanic White

13%

non Hispanic

17%

more likely to be Millennials*

*compared to Gen Pop 13+ SOURCE: LUMINATE MUSIC CONNECT LUMINATE INSIGHTS ARTIST & GENRE TRACKER WAVE 8 6/2023

+34%

YOASOBI

662.4M

US On-Demand Audio (ODA) streaming YTD of J-Pop artists ranked in US Top 10k artist list (+29.6% over 2022)

J-Pop

World Genre Snapshot

more likely to be Millennials

+72%

more likely to identify LGBTQ+*

+88%

more likely to be male (56% male)

* COMPARED TO GEN POP 13+ SOURCE: LUMINATE INSIGHTS ARTIST & GENRE TRACKER WAVE 7 3/2023 & WAVE 8 6/2023

+12%

TREND 3

The Impacts of New Tracks

Analyzing the Effects of the Ever-Growing Number of ISRCs on Streaming Platforms

112K

93.4K

Average of new ISRCs added daily to DSPs in the first half of 2023

Average new ISRCs added per day in 2022

New Audio and Video ISRCs Created Each Year

16.4M

25.9M

25.8M

30.5M

34.1M

20.2M

+57%

-0.2%

+18%

+12%

112K

Average new ISRCs added per day through the first two quarters of 2023

2018

2019

2020

2021

2022

H1 2023

Average of 112k new ISRCs delivered to DSPs each day through the first half of 2023

Average Daily ISRC Delivery to DSPs

Rest of Industry*

Major Distribution

*Inclusive of independent distribution and DSPs that cater to creator network

AI Music Spread in Today’s Marketplace

How Ghostwriter “Heart On My Sleeve” Spread to 30+ Countries in April 2023

Countries with >30K Total OD Streams on a Single Day Throughout Period

“Heart on My Sleeve” jumped to 2.4K U.S. OD streams on Day 8 before being picked up by Canada, the UK, Australia and Germany

Day 11 showed a 105% Global OD stream jump

2023

Midyear Charts

Luminate is the preeminent entertainment data and insights company, unleashing access to the most essential, objective, and trustworthy information across music, film and television, with data compiled from hundreds of verified sources. Today, the company maintains its more than 30-year legacy of accurate storytelling by powering the iconic Billboard music charts, while also acting as the premiere database for the television and film industries. Working closely with record labels, artists, studios, production companies, networks, tech companies, and more, Luminate offers the most valued source of comprehensive, independent, and foundational entertainment data that drives industry forward. Luminate is an independently operated company and a subsidiary of PME TopCo., a joint venture between Penske Media Corporation and Eldridge.

HOVER OVER CIRCLES TO REVEAL AUDIENCE

*music spend indices reflect a comparison to music listeners Source: LUMINATE INSIGHTS US MUSIC 360 WAVE 2 6/2023

To Shop Online

To Buy Cosmetics

To Use Food Delivery Services

more likely than Gen Pop

+27%

+14%

more likely than Gen Pop

+17%

more likely than Gen Pop

Streaming share of English language content in Top 10k US Total On-Demand (Audio & Video) tracks down 4.2% since 2021; Spanish grows 3.6%

Top 3 Languages in US H1 2023 Consumption*

English — 88.3%

Spanish — 7.9%

Korean — 0.9%

English Language Share of Streaming in U.S.

Spanish Language Share of Streaming in U.S.

Morgan Wallen

U.S. Gen Z Country Music Fans

Media Contact: press@luminatedata.com

Bailey Zimmerman

D2C Vinyl and CD Share of Category Sales Grow Slightly Over This Period Last Year

Taylor Swift

1 in 9 U.S. vinyl album sales are via Direct-to-Consumer (ex. Official artist webstore)

% of U.S. Category Sales That Are D2C

Though category share is down since 2022, nearly 30% of U.S. cassette sales are via D2C

Understanding Super Fans

#1

Social Signaling

#2

Expressions of Identity

#3

The Community

boygenius

swift: Michael Buckner

All figures cited on this slide are relative to the average music listener *SUPER FANS ARE THOSE WHO ENGAGE W/ ARTISTS AND THEIR CONTENT IN 5+ DIFFERENT WAYS.

Luminate will launch country-level music engagement data in Summer 2023. Click here to request a demo today and join the waitlist!

HOVER ON CIRCLES for more info

Super fans are +54% more likely to be "the first among their friends to discover new music and artists"

Super fans are +59% more likely to say they "would like to connect with artists on a more personal level”

Super fans are +43% more likely to say they “like to participate in the community or fandom” that specific artists provide

When compared to the General Population (Gen Pop) and other fan groups

Growth in the US spurred pickup on day 9 in Canada, the UK, Australia and Germany

Luminate data shows activity in 32 countries mostly throughout the US / Canada, Europe, Latin America and Asia when it was pulled from DSPs

(Indices) reflect comparison to the US Gen Pop

% who indicate this would keep them from attending a live in-person event

$25

$26

$33

$37

Distribution of Listeners in the U.S.

(Darker Colors Indicate Greater Listener Proportions)

Distribution of Listeners in the U.S.

(Darker Colors Indicate Greater Listener Proportions)

Distribution of Listeners in the U.S.

Luminate Global ISRC ingestion beginning Week 40 2018

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Zimmerman: Sebron Snyder for PMC Source: Luminate Insights Artist & Genre Tracker Wave 8 6/23

Nolwen Cifuentes for Billboard

Brian Friedman for Billboard

Global