The music industry is experiencing growth in all markets, regions, and formats. According to a report from the record industry association IFPI, the sale of music records worldwide increased in 2023 for the ninth consecutive year. This growth can be attributed to the increase in the number of subscribers to streaming services. Overall revenue from music sales increased by 10.2 percent to $28.6 billion, with more than half of this revenue coming from streaming.
Streaming subscriptions also saw growth, with over 667 million users contributing to an 11.2 percent increase in revenue. Revenue from physical audio formats like CDs and vinyls increased by 13.4 percent, while royalties saw a 9.5 percent increase. The only area that saw a decrease in revenue was digital music records, with a 2.6 percent decline.
IFPI Chief Financial Officer John Nolan noted that the music industry is experiencing growth in all markets, regions, and formats. Sub-Saharan Africa saw the strongest growth at 24.7 percent, with the South African Republic leading the way. Latin America and Asia also saw double-digit growth rates. In terms of regional income share, Europe ranks second globally with 25 percent, followed by the US and Canada at 41 percent.
Despite the positive growth, IFPI Chief Legal Officer Lauri Rechardt highlighted challenges such as streaming fraud, digital piracy, and the responsible development of generative artificial intelligence to ensure artist and publishing rights are respected.
The report suggests that this growth is due to consumers choosing more convenient ways of accessing music rather than purchasing physical copies or downloads.
Overall it shows that despite some concerns about online piracy and streaming services infringement on artists’ rights; there is still significant demand for music across various platforms which continues to grow year after year.
