The International Federation of the Phonographic Industry (IFPI), a global organization representing the recorded music industry, has released its annual Global Music Report, detailing the trade revenues for the industry in 2023.
According to the report, global recorded music revenues experienced a significant growth of 10.2% year-over-year (YoY) in 2023, reaching a total of USD $28.6 billion.
This marks the ninth consecutive year of growth for the global music market. A substantial portion of this growth is attributed to the rise in subscription streaming revenues, which grew by 11.2% YoY and accounted for 48.9% of the global market, amounting to $14 billion in 2023.
Key players in the streaming industry, such as Spotify, implemented price increases in 2023, contributing to the overall revenue growth. Other streaming services like Apple Music, Amazon Music, and YouTube Music/Premium also saw price adjustments during the year.
Total streaming revenues, including both paid subscriptions and advertising-supported models, reached $19.3 billion in 2023, representing more than two-thirds (67.3%) of the total global market.
One of the notable milestones in 2023 was the surpassing of 500 million paid subscriptions to music streaming services for the first time, with a total of over 667 million users across paid subscription accounts.
While streaming dominated the revenue landscape, other segments also saw growth. Physical revenues increased by 13.4% YoY to $5.1 billion, and performance rights revenues rose by 9.5% YoY to $2.7 billion.
Geographically, Sub-Saharan Africa (SSA) emerged as the fastest-growing music region with a revenue growth of 24.7% in 2023, driven primarily by a 24.5% increase in paid streaming revenues. Europe, the USA & Canada, Latin America, MENA, Australasia, and Asia also experienced positive growth trends in their respective music markets.
The top 10 music markets in 2023 remained consistent with the previous year, with the USA leading followed by Japan, the UK, Germany, China, France, South Korea, Canada, Brazil, and Australia.
IFPI’s Chief Financial Officer and Interim Joint Head, John Nolan, emphasized the global and diverse nature of the music industry’s growth, attributing it to sustained investments by record companies in artists, marketing, and A&R activities. However, he also highlighted challenges such as streaming fraud, digital piracy, and the responsible development of artificial intelligence in music creation and distribution.
IFPI’s Chief Legal Officer and Interim Joint Head, Lauri Rechardt, emphasized the industry’s focus on authenticity and the need for effective measures to address unauthorized uses and ensure the sustainability of the music ecosystem in the long term.
