Compiled from 2017 figures, the third WINTEL report from London-based Worldwide Independent Network (WIN) shows that the indie market share is 39.9%. It was 38.4% in 2016, an 11.3% year-on-year jump, while the rest of the market only expanded by 10.2%. WIN estimates its figures from ownership, not distribution (for which majors claims 22.4% of indie revenue). Direct revenue was $101 million, up from $94 million in 2016. In terms of share in their home markets, South Korea had an astounding 89.2%, followed by Japan (63.8%) and the US (39%). Australia ranked #9 a 33% share, while Canada had 25% and the UK 23%.
Fuelling much of the indie market’s growth was streaming revenue leaping by 46% to US$3.1 billion. Streaming now accounts for just under 44% of the sector’s overall income, aided by indie labels quickly embracing streaming because it makes cash flow easier. WIN reckons it might have hit 50% already, saying:
“These figures also hint at another encouraging trend for independent labels: that their investment in artists’ long-term development, and in the album format, is an advantage rather than a risk in the streaming era. While major labels expend considerable marketing resources to break individual tracks, indies are investing for the long term: and are developing sustainable businesses as a result.”
On average 31% of their income comes from abroad, compared to 69% from the home market. Meanwhile, some of the larger indies, including those from Australia, have revealed to Industrial Strength that over half comes from overseas. WIN drew a freeze frame of what the average independent label looks like these days. They evoke incredible loyalty from their artists. On average, 77% re-sign with them, though it’s higher in Australia at up to 89% (fifth highest) while Spain was the highest (97%). The US didn’t fair so well on loyalty at 80%, as well as New Zealand (70%) and the UK (41%). This indicates that indies are seen as fair and transparent.
Indies also seem to be more stable. Based on this year’s survey, 42% of staff have been there since the launch of the label. Bear in mind that the average label is 14.9 years old. They have an average of 13.6 full-time staff, 3.2 part-time staff and 97.6 artists in their catalogue. On the strong stance of independent labels, Charles Caldas, CEO of digital rights group Merlin said: “It’s what independent labels have been great at through the history of recorded music: finding a genre, a scene or a particular strain of music, and defining it by making sure it came to market for people to discover. I really do believe we’re entering an era where that kind of long-term commitment to your artists is going to pay dividends.”
