Oct 25th | How is the industry adapting to listener preferences for native language songs?

Hey Folks  🎶

Welcome to another edition of your Indie Insider! This week, we’re diving into a bold new move by Universal Music Group—using AI tech to reimagine a holiday classic, but that's not all! We’ll also take a look at a record-breaking year for UK music exports. While the numbers are impressive, the underlying trends tell a more complex story about the global music scene. Plus, if you’re a songwriter, we’ve got some good news—royalty collections hit a new high this year. But, with growing concerns over AI’s role in music and challenges in digital revenue, there’s plenty to keep an eye on.

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Now, let’s get to the good stuff—AI holiday hits, UK music exports, and where global royalties are heading! Ready? Let’s go! 👇

🎄 UMG’s AI-Powered Holiday Classic: A New Spin on “Rockin’ Around the Christmas Tree” 🎶

Universal Music Group (UMG) is leading the way in using AI to reimagine beloved music classics. Their latest project has brought a festive twist to the holiday favorite “Rockin’ Around the Christmas Tree” by Brenda Lee. Partnering with SoundLabs, UMG created a brand-new Spanish version of the song titled Noche Buena y Navidad—and it features AI-generated vocals. This groundbreaking release is the first of its kind, utilizing ethically trained AI through SoundLabs' MicDrop vocal plug-in. UMG emphasizes that this is the first time AI has been used in this way, with full artist involvement and approval ensuring it’s done with care and respect for the original work.

🎤 Brenda Lee herself expressed her excitement, having always wanted to record the song in Spanish but never having had the opportunity. Now, with AI’s help, her dream has come to life. UME President Bruce Resnikoff and UMG Nashville Chair Cindy Mabe also chimed in, highlighting AI’s potential to give old classics new life, especially in different languages, and to introduce them to new audiences worldwide. 

This move comes at a time when the demand for native-language music is growing, and UMG’s AI-driven innovation could be a game-changer. With Spanish-speaking countries showing a stronger interest in this music sung in Spanish, it’ll be interesting to see if this version gains even more popularity than the original in those markets. We’ll be keeping an eye on its performance over the holiday season. 🎅🎄

🇬🇧 UK Music Exports Reach New Heights—But Not Without Challenges

British recorded music exports have hit a new high, but there’s more beneath the surface. In 2023, the UK’s music exports climbed to a record £775 million ($964 million), reflecting a 7.6% year-over-year increase. While this growth is notable, it’s slower than the 20% increase the industry saw in 2022, and it lags behind the global recorded music revenue growth of 10.2%.

What’s more concerning is that UK artists' share of global streaming continues to decline. In the first half of 2024, UK music’s share dropped to 7.9%, down from 8.49% in 2023. To put this into perspective, back in 2015, UK artists made up 17% of global music streaming. The English-language dominance that once defined the global music scene is waning. As listeners increasingly turn to music from non-English-speaking countries—particularly in Latin America, Brazil, and South Korea—English-speaking countries like the UK, the US, and Canada are seeing their market share shrink.

The US, in particular, has dominated English-language exports this year, with its artists even topping the UK charts. Where UK domestic artists once held a solid grip on the UK Top 10 songs, the list now features 90% US-based artists, with the remaining 10% Irish. As genres like K-pop, Latin music, and Afrobeats gain worldwide attention, competition is heating up for UK artists.

Despite this, the British Phonographic Industry (BPI) remains optimistic. They’ve called for increased government support through initiatives like the Music Export Growth Scheme (MEGS), which has delivered a strong return on investment for UK artists. The US remains the top market for British music exports, followed by Germany and France, with India seeing the fastest growth at 26.3%. BPI has its sights set on reaching £1 billion in music exports by 2030, but they stress the importance of government backing to make that a reality.

🎶 Songwriters Score Big as Global Royalty Collections Hit Record Highs 💰

2023 was a record-breaking year for global royalty collections, with creators bringing in €13.1 billion ($14.2 billion), a solid 7.6% increase from the previous year. Most of this came from music royalties, which accounted for €11.75 billion ($12.72 billion) of the total. Although this represents significant growth, the pace has slowed compared to the 28% rise seen in 2022. 

One area that saw a major comeback was live performance royalties. Collections from live shows and public performances surged by 22% YoY, reaching €3.28 billion ($3.55 billion) and surpassing pre-pandemic levels by nearly 13%. With live music back in full swing, artists are finally seeing revenues return to this critical part of their income streams.

However, not all sectors experienced such a boom. While digital collections did grow by 9.6%, this is a significant slowdown compared to the previous year’s 33.5% increase. And while digital channels still accounted for a major part of overall growth, there’s growing concern that streaming revenues alone aren’t cutting it for most creators. Only a handful of top-tier artists truly benefit from these revenues, with many others struggling to see substantial income.

In response, the music industry is increasingly focusing on ways to better monetize superfans. Whether it’s through premium offerings or higher subscription prices, the aim is to tap into the most dedicated listeners to boost revenues. That said, with more than 33% of users having canceled subscriptions due to high costs, price hikes may not be the long-term solution everyone hopes for.

Geographically, the US remained the biggest market for music royalties, with collections reaching €2.8 billion, followed by France at €1.4 billion, and the UK at €1.1 billion. The fastest-growing region was Latin America, which saw a sharp rise of 26.2% YoY.

The industry is also facing growing concerns over the role of AI in music. As AI-generated music and tools continue to evolve, organizations like CISAC are pushing for policies to ensure creators are properly protected and compensated. There’s also a sense of vulnerability in the live music sector, as many regions are still seeing venue closures and limited government support. The future of live music recovery will likely depend on the extent of this assistance.

As always, we’ll keep you updated on these trends as the music industry continues to evolve in the age of AI, streaming, and shifting listener behaviors. Stay tuned for more insights and updates next time! 🎧✨