Global Music Industry Booms with $28.6 Billion Revenues, Streaming Dominates, Challenges Loom

Global music revenues surged by 10.2 percent last year, reaching $28.6 billion, as per the latest data released on Thursday. However, despite the growth, record companies are grappling with sustaining momentum in the streaming-dominated era.

Notably, Taylor Swift secured the title of the world’s top artist, with Korean bands Seventeen and Stray Kids closely following suit, underlining the expanding influence of K-pop.

The chart-toppers in terms of singles included Miley Cyrus with “Flowers,” crossing 2 billion streams, alongside hits from Rema and Selena Gomez with “Calm Down” and Sza’s “Kill Bill.”

Streaming continued to be the primary driver, climbing by 11.2 percent and now constituting over two-thirds (67.3 percent) of global revenues. Paid streaming subscriptions surpassed 500 million, reaching 667 million for the first time. Physical formats, notably vinyl, also experienced a resurgence, with sales rising by 13.4 percent.

John Nolan, IFPI’s chief financial officer, highlighted the industry’s global and diverse nature, with revenue growth across markets and formats.

Sub-Saharan Africa (up 24.7 percent) and Latin America (up 19.4 percent) emerged as the fastest-growing regions, fueled by streaming expansion and the ascent of local talents like Burna Boy, Asake, J Balvin, and Bad Bunny.

Despite the overall positive trend, challenges loom, particularly with the rise of platforms like TikTok and gaming among youth. Dennis Kooker from Sony Music pointed out concerns about ad-supported platforms hindering subscription growth, with Universal Music Group even withdrawing its catalog from TikTok due to disputes over AI-generated music and royalties.

The industry’s focus is shifting towards catering to dedicated fans willing to invest more in exclusive products, according to Kooker. However, encouraging paid streaming remains an uphill battle in some markets like France, where low penetration rates persist, exacerbated by the introduction of a streaming tax.

In essence, while the music industry celebrates another year of growth, navigating the evolving digital landscape and converting casual listeners into paying subscribers pose ongoing challenges for record labels worldwide.

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Ikenna Churchill

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