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Streaming revenue now accounts for 60 percent of total revenue as of 2024, making it „bigger than the entire recorded music industry revenues for each year between 2003 and 2020,“ trade body IFPI finds.
By Georg Szalai
Global Business Editor
Global recorded music revenue increased by 4.8 percent in 2024, driven by a 9.5 percent jump in subscription streaming revenue, despite a “highly competitive market,” according to worldwide recording industry organization IFPI. Figures released Wednesday in its Global Music Report show that total trade revenue reached $29.6 billion in 2024, marking the 10th consecutive year of growth.
Users of subscription accounts grew 10.6 percent to 752 million worldwide as of the end of last year, while advertising-supported streaming revenue grew by a more modest 1.2 percent, according to the IFPI report.
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Annual streaming revenue exceeded $20 billion for the first time with $20.4 billion, making this part of the sector “bigger than the entire recorded music industry revenues for each year between 2003 and 2020,” it highlighted. As a result, streaming accounted for 69 percent of total recorded music revenue in 2024.
Global performance rights revenue climbed 5.9 percent in 2024, marking the fourth consecutive year of growth, to reach $2.9 billion.
However, “physical formats had a more challenging year,” with revenue declining 3.1 percent from a strong 2023 that had posted a 14.5 percent jump, IFPI noted. “Vinyl revenue continued to grow in 2024, up 4.6 percent,” marking its 18th consecutive year of growth.
IFPI CEO Victoria Oakley, during a London event unveiling the report, noted that the 2024 growth was down from 10.2 percent in 2023 but highlighted that other sectors would be more than happy with such gains. She cited such artists as Charli XCX, Taylor Swift, Benson Boone, and Chappell Roan, and the success of such genres as country music.
Wednesday’s IFPI report also highlighted revenue gains in every region of the world, led by 22.8 percent growth in the Middle East & North Africa, 22.6 percent in both sub-Saharan Africa and 22.5 percent in Latin America. Revenue for Europe rose 8.3 percent, while the U.S. and Canada posted a 2.1 percent gain, and Asia a 1.3 percent improvement.
The Middle East & North Africa “remained dominated by streaming, and those revenues accounted for 99.5 percent of the total,” IFPI highlighted.
“The essential role music plays in so many parts of our lives is evidenced in the continued growth of the global industry,” said Oakley. “What is so exciting is that there is still great potential for further development, through innovation, emerging technologies, and investment in both artists and the evolving parts of the growing music ecosystem.”
She also touted “the brilliant creativity, vision and hard work of artists and songwriters around the globe, powered in part by the work, investment and passion of record companies and their teams.”
Concluded Oakley: “In the case of record labels, returning revenues enable the, to be patient, long-term, consistent investors in artists, innovation, and culture.”
IFPI recently named Taylor Swift as its 2024 biggest-selling global recording artist of the year for the fifth time after 2014, and again in 2019, 2022, and 2023.
Gee Davy, CEO at the Association of Independent Music (AIM), said it was “encouraging” to see recorded music revenue continue to grow. “All the same, fast action is needed to support the U.K.’s music businesses to ensure that they can compete in the new global market dynamics. Increased streaming subscription revenues are positive, suggesting that fans’ appetites haven’t been dampened by price rises. However, recent findings from Midia meanwhile show that the introduction of streaming thresholds, particularly those which demonetize, are taking a toll on the finances of emerging artists. With the streaming market coming of age, we call on streaming platforms to ensure that those on the way up aren’t unfairly penalized under the guise of so-called ‘artist-centric’ model changes.”
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