Global Music Industry Hits a High Note: A 2023 Revenue Recap & Opportunities.
Music industry is not dead, it is growing!
2023 was a landmark year for the global music industry, with revenues soaring to $28.6 billion, marking a 10.2% increase. This remarkable growth signifies the ninth consecutive year of expansion, highlighting the industry's resilience and adaptability. Central to this success was the surge in paid subscriptions to music streaming services, which for the first time surpassed the 500 million mark, reaching an impressive total of over 667 million users worldwide.
Streaming Takes the Lead
Streaming services continued to dominate, with subscription-based streaming witnessing an 11.2% increase, contributing $14 billion and accounting for 48.9% of the global market. Overall streaming revenue, encompassing both paid subscriptions and ad-supported services, grew by 10.4% to $19.3 billion. This growth underscores streaming's pivotal role in the music industry, making up more than two-thirds (67.3%) of the total global market revenue.
Physical and Performance Rights Revenues on the Rise
In a noteworthy turn, physical revenues saw a 13.4% increase, reaching $5.1 billion, while performance rights revenues rose by 9.5% to $2.7 billion. These trends reflect the diverse revenue streams contributing to the industry's overall growth.
A Closer Look at Regional Growth
Sub-Saharan Africa emerged as the fastest-growing region, with a 24.7% increase in recorded music revenues, driven by a significant 24.5% rise in paid streaming revenues. Europe saw an 8.9% growth, while the USA & Canada, the largest revenue region, grew by 7.4%. Latin America also made notable strides, with a 19.4% increase marking its 14th consecutive year of growth.
The Middle East and North Africa (MENA) and Australasia regions experienced substantial growth rates of 14.4% and 10.8%, respectively. This growth was further amplified in Asia, where revenues increased by 14.9%. Japan, as the world's second-largest market, saw a 7.6% revenue increase, while China, ranking fifth, experienced the fastest rate of increase among the Top 10 markets with a 25.9% growth.
Top Markets Holding Steady
Despite the shifting landscapes of regional growth, the world's Top 10 music markets remained consistent with the previous year, underscoring the enduring strength of the industry's leading players.
According to the IFPI, the Top 10 music markets in 2023 were:
1. USA
2. Japan
3. UK
4. Germany
5. China
6. France
7. South Korea
8. Canada
9. Brazil
10. Australia
Ever growing
2023's impressive growth highlights the dynamic nature of the global music industry and the increasing significance of streaming services. As the industry continues to evolve, it will be fascinating to see how these trends develop and what new opportunities arise. The success story of 2023 sets an optimistic tone for the future, promising even more innovation and expansion in the years to come.
Well, but what does this mean for musicians and bands?
The article highlights a significant growth in the global recorded music revenues, which saw a 10.2% increase to reach $28.6 billion in 2023. This growth is largely attributed to the rise in paid subscriptions to music streaming services, which surpassed 500 million globally. Here are the key benefits and opportunities that this growth presents to musicians and bands:
1. Increased Revenue Streams: The jump in paid streaming subscriptions indicates a larger audience is willing to pay for music, providing musicians with a steady and growing source of income from streaming platforms.
2. Global Reach: The digital nature of streaming services allows musicians to reach a global audience without the need for physical distribution. This can significantly enhance their visibility and open up new markets for their music.
3. Data Insights: Streaming platforms offer valuable data and analytics that can help musicians understand their audience better, including demographic information, listening habits, and geographic locations where their music is popular. This can inform marketing strategies and tour planning.
4. Fan Engagement: The rise in streaming services also provides opportunities for artists to engage with their fans in innovative ways, such as through exclusive releases, playlists, and direct communication tools offered by these platforms.
5. Diversification of Revenue: The growth in physical revenues, up 13.4% to $5.1 billion, suggests that there is still a significant market for physical sales alongside digital. Musicians can take advantage of this by offering special editions, vinyl, and other physical merchandise.
6. Performance Rights Revenue Growth: With a 9.5% increase in performance rights revenues, there is a clear indication that there's value in live performances, radio play, and other public performances of recorded music. It underscores the importance of performance rights organizations and licensing agreements.
7. Emergence of New Markets: The article points out Sub-Saharan Africa as the fastest-growing music region, indicating potential new markets for musicians to explore. Regions experiencing significant growth in streaming revenues provide new audiences and opportunities for live performances.
8. Collaboration Opportunities: The expanding global music market encourages collaborations between artists from different regions, leading to cross-cultural projects that can appeal to diverse audiences and tap into the growing streaming market.
9. Increased Investment in Music: The overall growth in music revenues signals to investors and record labels that the music industry is thriving. This can lead to more investment in new talent, higher production values, and more resources for marketing and promotion.
10. Adaptation to Industry Changes: The shift towards a more diversified music market, including the emphasis on superfan engagement and expanded rights revenue growth, suggests that musicians and bands need to be adaptable and innovative in how they approach their careers in the music industry.
My 2 cents
In summary, the growth in global recorded music revenues presents numerous opportunities for musicians and bands to grow their income, reach wider audiences, engage with fans more deeply, and benefit from the evolving landscape of the music industry.
Also, after Covid there is a significant decreased amount of active bands and musicians, which creates even more potential space for those active ones. So there definitely is an opportunity for serious musicians and bands to become successful in this dynamic industry.
But!
Bands and musicians need to work hard towards their goals, go out from their comfort zones and treat their music careers as real business, not only playing music...
If you are interested in how could you start building your impact in music industry, take advantage of free consultation with me.
Source data from https://www.musicbusinessworldwide.com/