The IFPI Global Music Report, renowned for its comprehensive insight into the global music industry, released its 2024 report on Thursday at a press event in London. While the numbers indicate a thriving business, industry executives are signaling a pivotal moment ahead.
In 2023, global recorded music revenues reached $28.6 billion, marking a robust 10.2% increase and continuing the industry’s growth streak for the ninth consecutive year, surpassing the previous year’s 9% rise. Notably, paid music streaming subscriptions surpassed 500 million for the first time, growing by 11.2%, with a global total of 677 million paid subscription users.
This growth was observed across all regions, with mature markets like the U.S. & Canada, Europe, and Australasia seeing substantial increases, alongside significant rises in developing markets such as the Middle East & North Africa, Asia, Latin America, and Sub-Saharan Africa.
However, industry experts are acknowledging a shift in the industry landscape. The recent layoffs across major record labels and streaming services, coupled with ongoing challenges like Universal Music Group’s dispute with TikTok and concerns about artificial intelligence, are prompting a cautious outlook among executives.
Dennis Kooker, President of Global Digital Business at Sony Music Entertainment, highlighted the evolving landscape of music discovery in a fragmented audience environment. He emphasized the need for the industry to anticipate and adapt to market changes to remain relevant and support artists’ growth.
The discussion also touched on the role of AI in the music industry, with a focus on balancing technological advancements while protecting artists’ rights. Adam Granite, Universal Music Group’s EVP of Market Development, emphasized the importance of AI technology adoption while ensuring fair compensation for artists.
Additionally, the industry is looking into optimizing revenue from ad-supported/free streaming services, especially in short-form video platforms, to support artists and drive paid subscriptions.
Despite these challenges, the report reflects positive trends such as increased physical revenues, performance rights revenue growth, and promising developments in digital downloads. Industry leaders remain optimistic about the potential for further growth, particularly in emerging markets.
While the current report paints a stable picture with familiar top markets, industry insiders anticipate significant shifts in the coming year. The IFPI’s upcoming 2025 Global Music Report is expected to provide valuable insights into the evolving music industry landscape.
