The State of the Music Industry: Global Growth in 2023

The music industry continues to hit high notes, with 2023 marking another record-breaking year. Global recorded music revenues reached an impressive $28.6 billion, a 10.2% increase—the second-highest growth rate in history. This surge reflects not only the resilience of the industry but also its adaptability, as revenues rose in every region and across nearly all formats.

Global recorded music revenues reached an impressive $28.6 billion, a 10.2% increase

Key Trends Shaping the Music Industry

Streaming Reigns Supreme

Streaming remains the driving force behind the industry's growth, contributing 67.3% of total revenues.

• Subscription Streaming grew by 11.2%, making up nearly half (48.9%) of the global market.

• Ad-supported streaming held its ground, reflecting the diverse ways listeners engage with music.

The Resurgence of Physical Formats

Surprisingly, physical formats also saw a comeback with a 13.4% increase in revenues. This trend, driven by the enduring popularity of vinyl, showcases how traditional formats still have a place in the digital age.

Performance Rights and Synchronization

Revenues from performance rights rose by 9.5%, supported by live events and licensing deals.Synchronization (music in TV, film, and advertising) continues to contribute a modest but valuable 2.2% of global revenues.

Regional Breakdown: A Truly Global Industry

USA & Canada

North America solidified its dominance, contributing 40.9% of total revenues.

• USA: Revenues grew by 7.2%, maintaining its position as the largest single market.

• Canada: A standout performer, with 12.2% growth, placing it among the fastest-growing top 10 markets.

Latin America

Latin America had another blockbuster year, with revenues surging by 19.4%, far outpacing the global average.

• Brazil: +13.4%

• Mexico: +18.2%

  
  

  Streaming accounted for a staggering 86.3% of revenues, cementing its role as the region’s primary growth driver.

Europe

Europe remains a heavyweight, generating 28.1% of global revenues with 8.9% growth.

• UK: +8.1%

• Germany: +7.0%

• France: +4.4%

  
  

  Despite slower growth compared to emerging markets, Europe’s consistent performance underscores its stability.

Sub-Saharan Africa

The fastest-growing region globally, with an astonishing 24.7% increase in revenues.

• Growth was fueled by 24.5% growth in paid streaming, showcasing the region's digital-first adoption.

• South Africa: +19.9%, accounting for 77% of the region's revenues.

Asia

Asia posted a robust 14.9% growth, driven by digital innovation and a mix of physical and streaming revenues.

• Japan: +7.6% (second-largest global market).

• China: +25.9%, the fastest-growing market in the top 10.

MENA (Middle East & North Africa)

MENA revenues rose by 14.4%, with streaming dominating at a staggering 98.4% share. While growth slowed compared to 2022, the region still exceeded the global average.

Australasia

Australasia’s growth accelerated to 10.8%, supported by a 13.5% increase in subscription streaming revenues.

• Australia: +11.3%

• New Zealand: +8.4%

The music industry is thriving, navigating growth and transformation across multiple fronts:

• Streaming Dominates but Isn’t Alone: While streaming remains the cornerstone of revenue growth, the resurgence of physical formats and the continued strength of performance rights and synchronization revenues reflect a diverse and robust range of income streams.

• Global Growth Across Regions: Emerging markets like Sub-Saharan Africa, Latin America, and China are fueling explosive growth, while established markets such as the USA, Europe, and Japan remain steadfast pillars of the global industry.

• Innovation Driving the Future: The industry is poised for continued evolution with trends like AI-driven music creation, Web3 integration, and new approaches to streaming monetization. These innovations align with changing listener habits and technological advancements, ensuring the music world continues to resonate globally.

The future promises further innovation, with trends like AI-driven music creation, Web3 integration, and new streaming monetization strategies on the horizon. As the industry adapts to evolving listener habits and technological advancements, 2023 serves as a reminder of the music world’s unmatched ability to evolve and resonate globally.

For artists and industry professionals, these trends emphasize the need to embrace both emerging and established markets, explore new revenue opportunities, and stay ahead of digital innovation. The music industry isn’t just growing—it’s reinventing itself, setting the stage for an exciting and dynamic future.