1. Introduction to the Market
Population: 317,098,309
GDP per capita: $49,965
In terms of consumption and production, North America remains the world’s largest music market. However, with the shift to digital media and online communications, the opportunities for international artists and industry professionals to take export-ready entertainment to US audiences have greatly increased.
The US recorded market remains in a period of transition. According to IFPI figures, overall recorded sales grew by 2.1% in 2014 – with a decline in physical and digital track/album units being partially offset by consumer uptake for streaming services. Around 50% of North Americans are using paid and unpaid streaming services, while digital accounts for 71% of the recorded music market.
Along with the introduction of Spotify in 2011 and the rise of other subscription and advertiser supported services – such as Pandora, Rhapsody, iTunes Radio, YouTube, Beats Music, Google Play, Rdio, Muve Music and Slacker – international artists are finding new audiences in the US without necessarily leaving their home territories. In 2014, subscription income grew by 33.5% and ad-supported streaming by 21.4%. However, download revenue dropped by 7.2% /but still accounts for 55% of the US digital market.
2. Record Labels, Licensing & Distribution
Befitting its status as market leader, the US is home to headquarters of the three major record labels – based around the East Coast/West Coast axis of New York and Los Angeles, with all acting as umbrella to a host of individual and iconic imprints.
Universal Music and Sony Music dominate the market share of the domestic market (accounting for more than 50% of sales), however the independent sector remains healthy and responsible collectively for 34.6% of all recorded sales. The trade body for the independent sector is A2IM.
3. Publishing
The US publishing industry dominates the world- with New York and Los Angeles (alongside Nashville) as its epicentre and the collecting societies ASCAP and BMI each reporting revenues of over $900 million in 2012.
The sector is represented by two main trade bodies:
National Music Publishers’ Association
Music Publishers Association of the United States
4. Performance Rights
The US sustains three collecting societies for the performance royalties of composers, authors and publishers. The largest of these are the performer-owned ASCAP – which represents more than 460,000 rights holders – and the broadcaster-owned BMI. The third and smallest society – SESAC – was initially established to support underrepresented European stage authors and composers.
All mechanical rights are issued by The Harry Fox Agency.
The other key collective rights management organisation is SoundExchange – founded in 2003 to collect royalties on behalf of record labels and artists for non-interactive digital transmissions (including satellite and internet radio).
5. Management
The US is home to a significant number of music managers who are represented by their trade organisation the MMF-US.