The global music industry witnessed a substantial growth of 10.2% in 2023, surging its revenues to an impressive $28.6 billion. This marks the ninth consecutive year of expansion, surpassing the previous year’s 9% increase. The surge in growth was primarily propelled by the continued ascendancy of streaming services, which now contribute to over two-thirds of the industry’s global revenues.
The number of paid music streaming subscriptions exceeded 500 million for the first time, with subscription streaming experiencing an 11.2% uptick, while the count of paid subscription accounts globally reached 677 million users. This growth spanned across all regions worldwide, ranging from substantial rises in developing music markets like the Middle East & North Africa (+14.4%), Asia (+14.9%), Latin America (+19.4%), and Sub-Saharan Africa (+24.7%), to solid increases in mature markets such as the U.S. & Canada (+7.4%), Europe (+8.9%), and Australasia (+10.8%).
Despite these encouraging figures, industry leaders caution about an impending ‘transformational moment.’ Post the 2023 survey period, there were numerous layoffs across the recorded-music industry, notably at Universal and Warner. Senior executives are discussing the necessity to “redesign” how labels operate to adapt to the evolving music landscape.
Universal Music Group’s ongoing dispute with TikTok and the potential challenges posed by artificial intelligence further compound the industry’s concerns. Dennis Kooker, President of Global Digital Business at Sony Music Entertainment, highlighted the increased difficulty in music discovery amidst today’s “fragmented” audiences.
Nevertheless, the industry maintains a sense of optimism. The revenue growth underscores a globally diverse industry, with positive trends in every market, region, and recorded music format. Sub-Saharan Africa and Latin America emerged as the fastest-growing regions, benefiting from the proliferation of streaming platforms and the emergence of local talents.
In summary, the global music industry is undergoing a transformative phase. While revenue continues to ascend, primarily fueled by streaming services’ popularity, the industry grapples with new challenges and uncertainties. Navigating through this pivotal period, the industry must embrace adaptation and innovation to sustain its upward trajectory.
