IFPI Global Music Report: Global Music Revenues Increased by 10% in 2023
The music industry is marking its ninth consecutive year of growth, as revealed by the International Federation of the Phonographic Industry's (IFPI) Global Music Report 2024. In 2023, total recorded music revenues surged by 10.2%, reaching $28.6 billion.
Streaming revenue sees 11.2% increase
Streaming revenues took centre stage with the highest level of growth, with a remarkable 11.2% increase in subscription streaming alone. This comprises nearly half (48.9%) of the global market. This surge saw the number of paid subscriptions for music streaming services pass 500 million for the first time, totaling over 667 million users globally, with significant growth in various regions including the Middle East, North Africa and Sub-Saharan Africa.
Digital and physical revenues see simultaneous increase in growth for third consecutive year
Physical formats also witnessed growth, experiencing a double-digit percentage increase of 13.4%, and performance rights revenues rose by 9.5%. 2024 marks the third year in a row where digital and physical revenues have both increased. This has been seen across the globe, with the report noting an increase in revenue in every region, with five of seven continents experiencing double digit increases in revenue.
Fans increasingly value music, says John Nolan
Commenting on the release of the Global Music Report, IFPI’s Chief Financial Officer and Interim Joint Head of IFPI, John Nolan, pointed to the use of advertising and the partnership between the artist and their labels as a key factor in the growth of the industry, staying: “Fans are increasingly valuing music, with unprecedented choice and access to new releases, with 2023’s IFPI Global Charts including a diverse range of new genres and artists. This is testament to the talent of these artists, the passion of their fans, and the work of record labels both in championing artists and providing the best possible foundations for their global success.
“Music has shown time and time again that it can evolve and innovate but the report demonstrates it is the partnership between artist and label which is at the heart of the growth of music markets worldwide with the ensuing positive impact these have on their local economies.”
Industry leaders "cautiously optimistic"
Despite the positive growth, industry leaders remain cautiously optimistic, recognizing challenges such as piracy, streaming fraud, and the evolving landscape of artificial intelligence. IFPI emphasised the need for responsible development of AI technologies to protect artists' rights and sustain the music ecosystem in the long term. While acknowledging the current stability, they anticipate potential shifts in the industry's architecture as the industry and technology evolve in the coming years.
The full report can be seen here.
