As August 2024 draws to a close, the global music industry is closing the month on a high note with a positive financial outlook for the coming years. Experts are projecting continued growth for the sector through 2025, fueled primarily by the sustained expansion of streaming and the recovery of live events. According to the Global Music Report 2024, released by the International Federation of the Phonographic Industry (IFPI), total revenue for the music industry is set to exceed $55 billion by the end of the year. This marks a significant milestone, driven largely by the booming popularity of streaming platforms and the resurgence of live performances post-pandemic.
Streaming is expected to account for more than 70% of this revenue, with subscription-based services like Spotify, Apple Music, and Tidal leading the charge. The continued growth of paid subscriptions, especially in emerging markets, is proving to be a critical factor in the industry’s overall financial health. As digital music consumption remains at the forefront, streaming services are tapping into new regions where music consumption is on the rise, such as Asia, Latin America, and parts of Africa. Analysts predict that the expansion into these areas will be key in maintaining the momentum that streaming platforms have enjoyed in recent years.
In addition to the dominance of streaming, the live music sector is also making a significant recovery, contributing an estimated $12 billion in global ticket sales by the end of 2024. The resurgence of concert tours, festivals, and VIP experiences is proving to be a vital driver of growth in the music industry. Events like Ed Sheeran’s “Stadium Experience Tour” are at the heart of this revival, with projections indicating that the tour could gross more than $350 million in 2024 alone. These types of high-profile tours, along with a renewed demand for in-person experiences after years of pandemic restrictions, are helping to boost the financial standing of the live music sector. VIP packages, exclusive meet-and-greets, and premium concert experiences are also fueling higher revenue per fan, further boosting the financial health of the industry.
Despite these optimistic figures, financial analysts are cautious about the sustainability of these growth trends in the long term. Much of the music industry’s revenue growth is still dependent on the ongoing expansion of paid subscriptions, particularly in emerging markets. As the global audience for music continues to expand, so does the need for these platforms to maintain their growth trajectory and introduce affordable pricing models to attract more users. However, there are concerns that if paid subscriptions do not continue to grow at the same pace, or if market saturation occurs in key regions, the sector could face challenges in maintaining its current level of revenue growth.
Another major concern is the increasing consolidation within the music industry, especially among major record labels. Mergers and acquisitions in recent years, such as Sony Music’s $3 billion acquisition of BMG’s recorded music division, have led to a concentration of power in the hands of a few large players. This trend is raising questions about the long-term impact on smaller labels and independent artists, who may find it increasingly difficult to compete in a market dominated by a few conglomerates. The potential for a monopolistic structure in the industry could further limit opportunities for smaller creators and labels to access fair financial terms.
For independent artists, the continuing dominance of major platforms presents ongoing challenges. The payment models used by streaming services—where artists earn a fraction of a cent per stream—continue to make it difficult for smaller musicians to generate substantial revenue. As major labels and top-tier artists capture the lion’s share of streaming revenue, independent creators are left grappling with lower payouts and limited financial opportunities. This tension between large platforms and independent creators is expected to be a defining issue in the next year as the music industry navigates its changing financial landscape.
In the coming months, it will be crucial for industry stakeholders to address these concerns, particularly around artist compensation and the increasing market concentration. While the growth in streaming revenue and live music sales is undoubtedly positive for the industry’s financial future, the broader issue of equitable revenue distribution remains unresolved. As the industry continues to evolve, the balance of power between the major players and independent creators will be a key factor in shaping the music landscape for years to come.
Despite these challenges, the overall outlook for the global music market remains robust, with projections indicating that streaming and live music will continue to be the driving forces behind future growth. As the market continues to evolve, the financial future of the industry will depend on how well the sector adapts to changing consumer behaviors, market conditions, and the ongoing demand for both digital and live music experiences.
