The International Dance Music Summit has published its annual business report. This year’s edition focuses on the global impact of the pandemic on electronic dance music in 2020. The overall earnings from four main sectors of the industry — software and hardware sales, music sales and streaming, DJ and artist earnings, and clubs and festivals — came to a total of $3.4 billion. That’s less than half of 2019’s $7.3 billion in earnings and lower than that of the industry in 2012.
The biggest drops were, as expected, in clubs and festivals whose earnings were down 78% making up the majority of the difference. DJ and artist earnings were down 68%. In contrast, with all the time stuck at home, music sales and streaming were up by 4% or $48 million and software and hardware sales were up 23% for a record high of $203 million.
Metrics were up across all social media platforms, however, electronic dance music fans ranked 6th in eight music genres included in the report.
The report analyzed electronic dance music livestreams that were ticketed, with the findings summarized into three pillars for making the practice one that monetizes the artist’s community: enroll, engage and excite.
Livestreams from the electronic dance music sector, such as those hosted by David Guetta (pictured), are also highlighted for their fundraising efforts benefitting a variety of pandemic-related causes, including World Health Organization’s Covid-19 response fund and UNICEF.
Electronic dance music’s Spotify share declined in 16 of the 18 countries studied for the report. On the other hand, fans spent more than $52 million on Bandcamp. This behavior was propelled by “Bandcamp Fridays” when fan spent 15x more than they would on other Fridays.
The report also shares new methods of monetization that emerged during the pandemic including getting involved in the metaverse — a sector 20 times the size of the electronic dance music industry, NFTs, and working toward using the blockchain as a means of “transparency and fairness” in getting paid from all entities.
Diversity is also touched upon in the report, namely using DJ Mag’s always controversial Top 100s DJs to determine level of inclusion for women (far from parity) and people of color (slowed down).
Unexpectedly, there was signification growth in the electronic dance music consumption in countries such as India and Brazil and even legitimization of the industry in Saudi Arabia.
Ongoing in the report are comparisons between electronic dance music and hip hop, on a global level. As the report states “The EDM wave gave way to a Hip-Hop wave, which is now plateauing. Electronic music should prepare for its next moment in the spotlight.”