Streaming is leading in the race for global music market growth

Hey My Amigxs!

Ready for some upbeat news? Today we are talking about Global Music Market Growth. yes, sounds a lil dull, but we have something good for you! The latest report from the International Federation of the Phonographic Industry (IFPI) has hit the airwaves, and it’s music to our ears. The global music market has seen a remarkable 10% revenue increase, reaching a record $58.4 billion in 2023, with streaming leading the charge. Let’s dive into this growth story and explore how emerging regions like Sub-Saharan Africa and Latin America are setting the stage for the future of music.

Streaming Takes the Lead

Streaming is officially the superstar of the music industry, accounting for 65% of the global music revenue—up from 62% the previous year. In 2023, streaming revenues soared to $37.8 billion, driven by a surge in subscription services and ad-supported platforms.

Key statistics highlight this trend:

• Subscription Streaming: Subscribers to premium services like Spotify, Apple Music, and Amazon Music increased by 9% in 2023, reaching 572 million globally.
• Ad-Supported Streaming: Platforms offering free, ad-supported tiers saw a 15% revenue increase, with ad revenue totaling $6.5 billion.
• Digital Music Revenue: Overall digital music revenue, including downloads and streaming, grew by 12% to $41.2 billion.

What’s behind this streaming boom? It’s all about accessibility and convenience. With a nearly endless library of tracks at their fingertips, listeners can discover new artists, revisit old favorites, and create personalized playlists with ease. And let’s not forget the global reach—streaming services break down geographical barriers, making it easier for fans worldwide to access and enjoy music.

Emerging Markets: The New Frontier

While streaming is definitely stealing the spotlight, the real story might be unfolding in regions like Sub-Saharan Africa and Latin America. These areas are not just riding the coattails of the streaming revolution; they’re driving it forward.

Sub-Saharan Africa has been making waves with a burgeoning music scene. In 2023, the region’s music market grew by 8% to $1.4 billion. This growth is fueled by increased internet access, which saw a 15% rise in mobile internet users to 634 million. The popularity of genres like Afrobeats is spreading globally, and the region’s vibrant musical diversity is capturing international attention.

Latin America is also hitting high notes. The region’s music market grew by 13% to $3.1 billion in 2023. Latin American music’s influence is on the rise, with genres like reggaeton and salsa gaining global traction. For example:

• Reggaeton: The genre’s global streaming numbers jumped by 22%, driven by hits from artists like Bad Bunny and J Balvin.
• Digital Growth: Streaming in Latin America saw a 17% increase, with 93 million subscribers to premium services.

The Future of Music: What’s Next?

So, what does this mean for the future of music? As streaming continues to grow, and emerging markets become more influential, we’re likely to see several exciting trends:

1. Diversified Music Landscapes: Expect to hear more diverse sounds and genres making their way into mainstream playlists. As artists from Sub-Saharan Africa and Latin America gain traction, the global music scene will become even more eclectic.
2. Increased Competition: With more players entering the streaming space and new markets emerging, competition will intensify. Artists and labels will need to adapt and innovate to stand out.
3. Greater Access: As digital infrastructure improves, more regions will gain access to streaming services. This increased connectivity will open up new opportunities for artists and listeners alike.
4. Cultural Exchange: The blending of musical styles from different parts of the world will lead to exciting new genres and collaborations. Get ready for some groundbreaking cross-cultural tracks!

If you want to learn more about how music business intelligence is changing the game for how we analyze and process data read this post: “Music business intelligence; hitting the right notes“.

Rock On, My Amigxs!

The global music market is clearly on an upswing, and streaming is at the forefront of this exciting growth. With emerging regions like Sub-Saharan Africa and Latin America leading the charge, the future of music looks vibrant and full of potential.

Want to stay ahead of the curve in the ever-evolving music industry? Follow us on social media for the latest updates, and if you’re looking to boost your musical marketing game, reach out for expert advice and strategies that’ll help you make some noise in this dynamic landscape.

Until next time!