As part of the annual IMS Ibiza summit, the newly unveiled IMS Business Report 2025 highlights a cooling trend in recorded music growth. The report, authored by Mark Mulligan of MIDiA Research, maps out how a maturing streaming model has reshaped industry dynamics over the past year.
After rebounding strongly in 2023, the global recorded music market cooled in 2024 with growth slowing to 6%. A mature streaming sector in the West and another down year for physical formats held back momentum. Yet expanded rights surged to $4.1 billion, as labels leaned harder into experiences, merchandise, and direct fan engagement.
While independent labels grew their share to 30%, self-releasing artists lost ground due to new royalty thresholds. These shifting monetization models could also impact indie players in the months ahead.
Streaming still led revenues at $22.2 billion, but sustaining growth will now depend less on reach and more on deepening value per listener. As Mark Mulligan of MIDiA Research noted, “Electronic music finds itself at the start of a brave new era of cultural resonance.”
Streaming’s ceiling is visible – now the real innovation lies in deepening fan value, not chasing scale.
You can download the IMS Business Report, written by Mark Mulligan and MIDiA research here.
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