TOPLINE: Global recorded music retail revenues are projected to reach $18.9 billion in 2024, driven by the continued growth of streaming services and digital sales. This significant milestone highlights the ongoing transformation of the music industry and the increasing role of digital platforms in music consumption.
KEY FACTS:
- Streaming services remain the primary driver of growth, accounting for over 65% of total revenues. Major platforms like Spotify, Apple Music, and Amazon Music continue to attract new subscribers, with innovative features and exclusive content.
- Physical sales, while declining, still represent a notable segment of the market, particularly with the resurgence of vinyl records, which have seen a steady increase in demand.
- Digital downloads have seen a decrease in revenue share as consumers increasingly prefer streaming over owning digital files.
- Emerging markets in regions such as Asia and Latin America are experiencing rapid growth, contributing significantly to the global revenue increase.
- The rise of independent artists and labels, facilitated by platforms like Bandcamp and SoundCloud, is also reshaping the industry, offering more diversity in music production and distribution.
KEY BACKGROUND: The music industry has undergone a dramatic transformation over the past two decades, shifting from physical sales to digital formats. The advent of streaming services in the mid-2000s marked a turning point, providing a convenient and affordable way for consumers to access vast music libraries. Despite initial resistance from traditional music retailers and some artists, streaming has now become the dominant mode of music consumption. The COVID-19 pandemic accelerated this trend, with more people turning to digital entertainment during lockdowns. This shift has not only increased revenues but also changed how artists engage with their audiences, with live-streamed concerts and virtual events becoming more commonplace.
TANGENT: In addition to streaming, the music industry is seeing a surge in revenue from ancillary services such as merchandise sales, brand partnerships, and virtual experiences. Artists are leveraging social media platforms like TikTok and Instagram to reach wider audiences and create viral content that drives music sales and streams. Furthermore, the integration of music with other digital content, such as video games and fitness apps, is opening new revenue streams for the industry.
As global recorded music retail revenues approach $18.9 billion, the industry’s evolution underscores the importance of digital innovation and the expanding opportunities for artists and consumers alike.
FURTHER READING:
- The Future of Music Streaming: Trends and Predictions
- How Independent Artists Are Shaping the Music Industry
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