In this post, we are going to cover various statistics on the recording studio.
We wonder where all that magical music that we hear every day is made. Many artists today prefer home studios where they can relax and make music at the same time but no one can beat a professional recording studio.
Recording studios are one of the most important aspects of the music industry or they used to be.
This is exactly what we need to find out. The world is changing and so are the aspects every day.
You would be surprised to see the statistics that we have for you about the recording studios and how not much has changed about them but they have changed everything for us.
Statistics on recording studios
#1. Number of recording studios right now are the third highest in the US ever
According to the reports from the Central Bureau, the number of recording studios was 1700 in 2017 which is the third highest till now after 2008 and 2007.
This shows that the number of recording studios has been increasing since 2006 and the number of studios presents today is definitely employing more people than the time since the great recession.
Here are some statistics about the growth of the industry revenue in the past few years:
- In 2015 there was a 5% increase in revenue.
- By 2017, this growth had increased by 10% more.
- In 2019 there has been a decline of almost 15%
- The revenue might go down even more by 2021.
#2. Concentration of top recording studios around the world
We have known so many great artists whose amazing voices have been recorded in the best recording studios around the world. You will be surprised to know that most of these recording studios are located around a few specific cities in the world.
- 10 out of 20 of the best recording studios in the world are located in Los Angeles.
- The second city with maximum studios in London, which has 5 out of 20.
- The rest of the studios are located in New York.
#3. The market size and the industry has only been increasing
According to the anything research sound recording and audio production studies report, the market that is there for recording studios has only been increasing since the year 2014.
The number of companies and the people employed by them has increased 5 times in comparison to the year 2014 which saw a decline from the year 2013.
According to market forecast, there will be a slight decline in the next couple of years but it will be back up again by the time we reach the year 2024.
#4. Recording budgets are falling by the day
As mentioned by professor Leyshon in his research paper about recording studios, he says there has been a vertical disintegration.
Both the retail and production side have been suffering from a downfall due to the development of various software that has influenced the industry majorly.
The sector at the moment is seeing almost 50% decline in budgets which has led to a decrease in demand and requirement of studio time.
More than 25% of recording studios have been turned into tourist places due to their significance.
The only surviving studios in a place like London are around Abbey road. Out of all the 300 studios located in the UK, 200 of these are in London and only a handful of them are still working as they were a long time ago.
#5. Budget affects new talent hunting
As our statistics say, the deduction in budgets from the production side has also led to a major change in how talent is being hunted these days. Recording companies have simply withdrawn from recruiting new people or signing them.
The number of management companies that have entered the industry for finding new talent has increased by 17% this year while the number of record companies has decreased by almost 20% since the last year.
This shift in leadership has led to artists turning into marketing strategists and made them to work for maximum money out of them.
#6. Falling costs of recording technology
As per Market Research reports, the whole point of having a recording studio was the quality that you would get through a professional studio that was unmatchable.
Artists have found ways to record their music outside of the recording studios for a lower price which is almost 30 to 40% less than what one would pay for the time at a recording studio.
To be honest,
The quality of recorded music still remains the same.
The amount of gear required to record a song has also decreased in the last few years which has further brought down the costs by 5% in the total.
Hence the budgets given are also quite low which decreases the income of recording studios.
#7. Recording studios are turning into production houses
As per Market Research reports, seeing the opportunity in their decline, few recording studios have turned into production houses that cover the cost of managing, publishing, and production.
Turning a recording studio into an entire production house requires 35% more investment than just simply running a recording studio. Only 10 out of 100 recording studios have been able to do so successfully till now.
Researchers have considered this approach as not reliable seeing how small the portion of the sector is actually willing to do this.
#8. The revenue of recording studios to go down to 1.35 billion
For a country like America, recording studios have played an important role in bringing in the required money to the economy. Now that we see a major decline in a number of recording studios, there will be a decline in the revenue as well.
A survey was conducted in the U.S. from 2008 to 2013 to analyze how much revenue U.S.industry is getting through audio production.
- The revenue reached 1 billion in 2015 after increasing constantly.
- In the year 2019, it is predicted to be 1.45 billion.
- The year 2018 had the same revenue as 2015 after being 1.9 billion in 2016.
Considering all the statistics that we have looked at, the researchers have laid out a bottom line for the business sector of recording studios that numbers are falling and they will continue to fall especially in the Anglo-American economy.
Technological advancement has greatly impacted many sectors but this is one that is majorly being affected.
#9. Canada hits $186.7 million, +21.1% up in its revenue with the recording industry
Canadian sound recording and music publishing industry's revenue has got an edge with increasing $186.7 million revenue.
In 2015 revenue was only $1.1 billion so it saw a 21.1% rise. Its growth revenue is more when compared with expenses, so its profit rose up to 10.0% in 2017 which was 9.7% in 2015.
Recording studios have a share of 13% in this success while record production and distribution accounted for 53.9%.
Recording studios revenues rose to $139.5 million in 2017 which saw 6.8% increase from 2015.
Also read:
1. 60+ Mind Blowing Facts and Research on Music and Brain
2.13 Music Genre Statistics That Every Music Lover Should Know
3.15 Horrifying Music Piracy Statistics and Facts You Need to Know
Conclusion:
These are the various statistics on the recording industry. As the technology is growing professional recording studios are decreasing day by day and hence is affecting the overall revenue of its industry.
Hope you found post this helpful.