Given the rise of platforms like TikTok, it is transparent that the creation and ingestion of user-generated content (UGC) has left its mark on the music industry. According to a new MIDiA study report titled “The Growing Power of UGC,” in 2019, the UGC and user interaction have contributed more than $1 billion to global music revenue, and continues to grow to the point that YouTube is now outperviating Spotify and other audio streamingArraystreaming streams in major markets around the world.
The new report, sponsored through Audible Magic’s corporate content identity based in Los Gatos, California, says UGC will be a major contributor to expanding music intake over the next two years for an opportunity. about $6 billion for the music industry’s price chain. UGC’s music-related revenue, according to MIDiA, will total $4 billion by 2020 alone, adding $2. 2 billion potentially earmarked for the revenue of music rights holders.
While not all UGC music gains are successful in rights holders, over the next two years, the organization has the ability to capture $3. 2 billion in profits by implementing new simplified music licensing frameworks to monetize the music-related UGC as it progresses. . is now available for music videos and YouTube.
“Traditionally, many other people see the UGC as a promotional tool used to generate a musical demand,” says Audible Magic founder and CEO Vance Ikezoye, who has more than 20 years of professional experience in the music industry. “But it’s a new form of content with wonderful perspectives for platshapes and content owners. . . other people go to TikTok, not for music, but for creativity and artistic opportunity. “
The ongoing pandemic has only accelerated UGC expansion with many platform users who aspire to become the next Lil Nas X with her TikTok song “Old Town Road”, which grew to be reissued through Columbia Records last year. The distribution style for musicians, the study indicates that it will be the continuous progression of a series of “promotion and consumption” in which the price exchange replaces sales.
UGC platforms do not respond to classic licensing structures, so profit opportunities are lost. Ikezoye explains that rights holders face more friction as each of the platforms will have to be legal separately through each licensee. In addition, with poor advertising functionality,compatible models, slowdown in subscription revenue, and lack of tactics of choice to monetize fandom, the report suggests a desire to technify the UGC into new tactics that make it a laudable business for platforms and content providers.
While many giant corporations are already investing in UGC, he adds that medium and small corporations will be very surprised by the effects of the new report, according to Ikezoye, who says, “I hope rights holders will see an opportunity here and start thinking and identifying more artistic tactics to simplify licensing platforms. Many recognize that existing participation mechanisms are insufficient, and I don’t think I can have UGC without music, even podcasts come with music. “
The Key to Expansion for Rights Holders Focuses on china’s Virtual Market The report shows that Chinese platforms account for 50% of the profit expansion added through social media between 2019 and 22 in 2019, the expansion driven through Doyin’s ByteDance in China and TikTok in the rest of the world. Despite the uncertainty surrounding TikTok in the United States and India this year, the report explains that ByteDance remains a UGC leader with a significant profit expansion of $7 billion in 2018 to $17 billion in 2019.
Keith Jopling, Board Director of MIDiA Research, who wrote the report with MIDiA Research MANAGING director and analyst Mark Mulligan, issues the halo effect that music at TikTok enjoys with streaming and says, “UGC is here, it’s peaking, and we believe that much of this activity deserves to be legitimately developed and vindicated through the music industry , which is vital because, although the music industry receives a lot of promotion when presented on user-generated platforms like TikTok, it can go beyond advertising and monetize directly on platforms through subscriptions, in-app purchases, virtual sales and tip artists. “
With limited capabilities to refurbish, deliver, and promote existing formats, Jopling anticipates the need for new methods of monetization as streaming matures and new formats emerge. For inspiration, he conjures up music mashups, videos, montages, recombined tracks, and independent hit recordings, all taking credit for combined music through professionals.
Beyond the report’s two-year forecast, Jopling also predicts a boom in content creation driven by creators, publishers, remixers and other curators, which encourages the industry to go beyond promotion and packaging to engage other parties in their music.
“Live streaming is another example of an opportunity to interact differently with enthusiasts. . . Recently, Billie Eilish received enthusiasts interested in her show,” says Jopling. “The barriers between the artist, the creator, the superstar and the fan . . . those barriers are constantly reduced and destroyed. “
I am an award-winning professional journalist with over 15 years of experience writing and editing artistic content and entertainment for major media corporations around the world.
I am a professional journalist and awarded with more than 15 years of experience in writing and editing artistic content and entertainment for leading media corporations across the country. Gaining a master’s degree in media control from The New School has evolved my experience into newer practices. and concepts for the management of classic and emerging media platforms and organizations. As a violinist, music is my passion.