Swiss music market enjoys 7th year of growth with sales of CHF 223.7 million in 2022, 4% more than in the previous year according to IFPI Switzerland. The growth engine remains the streaming segment, which now accounts for 85% of the total market, while sales from downloads and physical media continue to decline. The moderate growth in vinyl, which has been ongoing since 2010, also paused in 2022 and turned slightly into the red. On the other hand, the streaming of short videos with music on social media is now also gaining financial importance.
Sales from social media are growing strongly
Revenues from audio and video streaming continue to increase (+8% to CHF 190.5 million) and make up 85% of the total market. In addition to paid streaming (+5% to CHF 166.4 million), advertising-financed audio streaming is now also gaining in importance, primarily due to the use of short videos on social media such as TikTok or Facebook (+81% to CHF 12.9 million). Together with the income from video streaming, namely YouTube, advertising-financed music streaming now contributes CHF 24 million (=11%) to the Swiss music market and thus surpasses physical CDs and vinyl (CHF 21.4 million) for the first time.
Vinyl declined slightly for the first time in twelve years
Sales of CDs and other physical sound carriers also fell in 2022 (-14% to CHF 21.4 million) and still contribute 10% to the overall market. The downward trend in CDs also affected vinyl to a lesser extent in 2022, after its development had shown a slight but steady upward trend for twelve years (-6% to CHF 4.5 million). HiRes achieved a depressingly small percentage share of 0.02%.
Lorenz Haas, Managing Director of IFPI Switzerland said, “The growth in social media once again demonstrates the dynamism of the music market. In the last 15 years we have seen the rise and fall of downloads and their replacement by paid streaming, and now social is the way to go Media to become a new growth driver. This also shows how the labels have learned to deal with digitization and to react quickly to new developments.”
