Music Industry Forecasts Reveal Unprecedented Growth by 2030
The music industry is poised for a remarkable transformation as Midia Research, a leading entertainment industry analytics company, recently unveiled its projections for the sector until 2030. The highly anticipated Global Market Music Forecasts report, published in June, presents an optimistic outlook, predicting a substantial 51% surge in global recorded music industry revenues, reaching a staggering $42.4 billion by the end of the decade. Midia’s comprehensive analysis further indicates that retail spending in the music industry is set to experience exponential growth, projected to reach an impressive $87.1 billion by 2030. One of the most attention-grabbing findings is the projected amount of paying subscribers to music streaming services across the globe, estimated to reach a staggering 1.1 billion by the end of the decade. This rise in subscribers is anticipated to be driven by developing markets in Asia Pacific, Latin America, and the rest of the world, establishing music as a universally understood language that surpasses geographical limitations.
Interestingly, Midia Research’s predictions align closely with those of the prominent investment banking company Goldman Sachs. The Music In The Air June report from Goldman Sachs projects a slightly higher rise to $50.1 billion in recorded music trade revenues by 2030, along with a similar figure of 1.2 billion paid subscribers. These congruent forecasts from two highly respected entities instill confidence in the industry’s bright future. While both Midia Research and Goldman Sachs focus on consumer revenue, there have been concerns raised by musician, content creator, and analyst, Benn Jordan. Jordan, in his recent findings, offered a more sobering perspective, suggesting potential layoffs for industry giants Moog, Apple, and Spitfire Audio. Although he hopes his predictions will be proven wrong, he raises valid concerns that warrant attention. One significant development outlined by Jordan is the acquisition of Native Instruments by Francisco Partners, alongside other music companies, for approximately extraordinary. This move has raised doubts about Native Instruments’ long-term prospects and has sparked speculation that they may acquire Spitfire Audio and integrate it into a subscription service, which could lead to job cuts.
Surprisingly, even technology titan Apple is not immune to Jordan’s forecast, as he predicts the possibility of layoffs for the company, a scenario not seen since 1997. While Apple has been a trailblazer in revolutionizing the music industry with its iTunes and Apple Music platforms, shifts in market dynamics and consumer preferences could potentially impact the company’s workforce. As the music industry sails towards uncharted territory, these forecasts serve as a guide for industry players and investors. The anticipated surge in revenues and subscribers bodes well for artists, producers, and record labels, signaling a new era of opportunity. However, the concerns raised by Benn Jordan remind us that adaptability and innovation will be key in navigating the changing tides of the music tech landscape. The journey ahead promises both excitement and challenges.
Image credit: IMS (Press)
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