Merlin survey: Indies have “crossed a digital tipping point”
Merlin, the global rights agency for the independent label sector, says that its label members have “crossed a digital tipping point.” 55% of its members’ business revenue now comes from digital services.
Total digital revenues increased for almost 75% of respondents. 17% reported their overall digital revenues increased by over 50%. One in three reported that most of their digital revenue was from audio streaming and subscription services.
65% reported an increase in overall business revenues in 2014 (compared to 62% in 2013). Only 16% suffered a slide, compared to 18% the previous year.
Merlin’s year-on-year revenues increased 43%. Analysing over 9 billion audio streams between January and April this year, usage of Merlin members’ music is 35% higher on paid-for tiers compared to free.
Set up in 2008, the association – headquartered in Amsterdam with offices in London – represents over 20,000 independent record labels and distributors around the world. These include the Beggars Group, Cooking Vinyl, Domino, Epitaph, Kobalt Label Services, Merge, Ninja Tune, [PIAS], Secretly Group and Warp Records. They represent a 10% share of US and global recorded music markets, the trade body said.
Artists represented include Arcade Fire, Bon Iver, Jack White, The Prodigy, Nick Cave & The Black Seeds, Arctic Monkeys, Aphex Twin, Brian Eno, Lenny Kravitz, The National, Queens of the Stone Age, Billy Bragg, Marilyn Manson, Animal Collective, Anna Calvi, Bad Religion (pictured), Tom Waits (pictured), Wilco, Tricky, Editors, Enter Shikari, Soulwax and Grizzly Bear.
The Merlin survey covered 26 countries. With 82% of respondents feeling “optimistic” about the future of their business, these findings correlate with analysis of Merlin’s own internal data. It revealed a 43% increase in year-on-year revenues (April 2014-March 2015) to US$137.8 million.
In March 2015 alone, audio tracks by Merlin members were streamed more than 2.5 billion times – an increase of over 1 billion from the same period last year.
86.6% of respondents stated that Merlin membership was important to their business.
Charles Caldas, CEO of Merlin, said: “The Merlin membership survey again shows how strongly the world’s leading independent labels are faring in the global digital market. This year’s results highlight the speed at which music fans are transitioning towards streaming and subscription services, and how independent labels are leading that change, and growing their audience in the process – with the vast majority growing their digital revenues and expanding their business overall.”
Last week, Merlin signed its 20,000 labels to Apple Music after Apple did a U-turn and agreed to pay indies royalties during its three-month trial period.