Global Music Industry Sees 10.2% Revenue Growth in 2023, Streaming Dominates Market

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The global music industry experienced a significant 10.2% increase in revenue in 2023, reaching a staggering $28.6 billion, as reported by the International Federation of the Phonographic Industry (IFPI). This growth, however, has sparked concerns among record companies about sustaining momentum in the streaming era.

Taylor Swift emerged as the top artist worldwide, trailed closely by two Korean bands, Seventeen and Stray Kids, indicating the growing influence of K-Pop. The year’s biggest singles included “Flowers” by Miley Cyrus, surpassing 2 billion streams, followed by “Calm Down” by Nigerian singer Rema and Selena Gomez, and “Kill Bill” by Sza.

Streaming continued to be the driving force behind the industry’s growth, with an 11.2% surge accounting for over two-thirds of global revenues. Paid streaming subscriptions surpassed 500 million for the first time, reaching 667 million. Additionally, physical formats, notably vinyl, experienced a resurgence with sales climbing by 13.4%.

John Nolan, IFPI’s chief financial officer, highlighted the industry’s global diversity, with revenue growth observed across various markets and regions. Sub-Saharan Africa and Latin America saw the most substantial growth, propelled by streaming and the rise of local talents like Burna Boy, Asake, J Balvin, and Bad Bunny.

However, concerns loomed over platforms like TikTok and gaming, where young consumers increasingly spend their time. Dennis Kooker of Sony Music cautioned against the limitations of short-clip video platforms in converting to paid subscriptions, prompting a shift towards catering to dedicated fans.

Despite the industry’s overall growth, challenges persist in certain markets, notably France, where low streaming penetration rates hinder revenue generation. Marie-Anne Robert, managing director of Sony Music France, expressed concerns about the impact of new streaming taxes on services like Spotify, exacerbating the challenge of encouraging paid streaming in the country.

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