Global music revenue grew in 2023 amid industry transformation

Driven by the surge in streaming services, the global music industry marked a robust growth of 10.2% in 2023, catapulting the revenues to an impressive $28.6 billion.

The global music industry experienced a significant growth of 10.2% in 2023, with revenues reaching $28.6 billion. This marks the ninth consecutive year of growth, surpassing the previous year’s rise of 9%. The growth was largely driven by the continued rise of streaming services, which now account for more than two-thirds of global revenues.

The number of paid music streaming subscriptions passed 500 million for the first time, with subscription streaming up 11.2%, while there are now 677 million users of paid subscription accounts globally. There was growth in every region of the world, ranging from solid increases in mature markets such as the U.S. & Canada (+7.4%), Europe (+8.9%) and Australasia (+10.8%) to more substantial rises in developing music markets in the Middle East & North Africa (+14.4%), Asia (+14.9%), Latin America (+19.4%) and Sub-Saharan Africa (+24.7%).

However, despite the positive figures, industry executives warn of a ‘transformational moment’ ahead. Since the 2023 survey period ended, there have been hundreds of layoffs across the recorded-music industry, particularly at Universal and Warner. Senior executives have talked of having to “redesign” how labels work for the new music climate.

Universal Music Group’s ongoing dispute with TikTok and the potential threat of artificial intelligence add to the industry’s concerns. Dennis Kooker, President of Global Digital Business at Sony Music Entertainment, warned that music discovery was much more challenging in the modern world of “fragmented” audiences.

Despite these challenges, the industry remains optimistic. The growth in revenues reflects a truly global and diverse industry, with growth in every market and region, and across virtually every recorded music format. The fastest-growing regions were Sub-Saharan Africa and Latin America, thanks to the spread of streaming and the rise of local stars.

In conclusion, the global music industry is in a state of flux. While revenues continue to grow, driven largely by the rise of streaming services, the industry faces new challenges and uncertainties. As it navigates this ‘transformational moment’, the industry will need to adapt and innovate to continue its growth trajectory.