Merlin’s 10th anniversary report: “Indies are not only thriving in the new market, we are leading it”
The advent of streaming has meant that Australian indies and their global counterparts are making money from new markets that were once of zero value to them.
A 10th anniversary report by Merlin, the global digital rights agency for the independent label sector, shows that 42% of Merlin members are making over half their revenue from outside their home market.
Between April 2015 and April 2018, revenue received from Merlin from Asian markets increased almost eightfold and more than tenfold from Latin America.
Merlin now licenses more than 20,000 independent labels across 55 territories. Collectively, they account for more than 12% of the global digital recorded music market.
Streams have become a torrent, says the report.
Merlin reports a 36% increase in monthly data processing.
The percentage of Merlin members who report that audio streaming makes up the majority of their digital revenues has taken a huge leap from 20% in 2014 to 68% currently.
In March 2018, the Merlin team processed an average of 14bn+ streams per month – a 36% increase on March 2017.
A study of 500 billion streams between May 2014 and April 2018 across Merlin’s global service partners, showed that Merlin’s member repertoire performs over 25% better in market share terms on paid tiers vs free tiers.
This year, 74% of Merlin members signalled that their total business increased in 2017 – up from 66% in 2016.
78% are optimistic about the future of their business.
Commenting on the report, Merlin CEO Charles Caldas said: “The advent of music streaming has transformed how independent labels operate, and how digital services perceive the value of our rights.
“Where once we were fragmented, we now act in unison.
“Where we were treated inequitably, we sit at the head of licensing discussions.
“Indies are not only thriving in the new market, we are leading it.”
Merlin has played a major role in this growth, Caldas says, pointing out that ten years ago, no one anticipated that Merlin would be distributing US$500 million a year to members, or that indies would find a foothold in new global markets in Latin America, Asia and China.
“But that’s where we are, and what we’re building upon. And most exciting of all, it feels like we’re only getting started,” Caldas says.
To see the full report, click here.