Growth is back! After a slower 2022, global recorded music revenues grew by 9.8% in 2023 to reach $35.1 billion, compared to 7.1% in 2022, which means that the market is now more than double (124.5%) the size it was in 2015.
2023 emerged as a year of robust growth and significant transformation in the music industry. According to a detailed analysis on the Music Industry Blog, global recorded music revenues experienced a notable surge of 9.8%, reaching an impressive $35.1 billion.
This growth not only marked a return to a positive trajectory post the pandemic’s volatility but also signified the industry’s evolution, with the market more than doubling in size since 2015.
The landscape of recorded music is diversifying, with streaming, although still at its core, beginning to see a slight decline in its dominance. Streaming revenues climbed to $21.9 billion, a modest increase of 9.6% from the previous year, indicating a shift in the streaming value chain. This period also witnessed a resurgence in physical formats and other revenue streams, highlighting the industry’s adaptability and the rising significance of superfans.
A strategic pivot towards superfans is evident, with labels and artists exploring diversified revenue streams beyond traditional formats. The report underscores the growth of expanded rights, encompassing merchandise and branding, as a testament to this shift, with a 15.5% increase to $3.5 billion in revenue.
Market dynamics also saw intriguing shifts, with non-major labels outperforming majors in revenue growth, indicating a broader acceptance and success of diverse music sources. This trend was particularly pronounced in the realm of expanded rights, where Korean labels played a pivotal role.
However, the year posed challenges for self-releasing artists, who faced slower growth in streaming revenue and market share. Despite these hurdles, the broader narrative of 2023 was one of optimism and change, setting the stage for a future where fandom and creation are central to the music business.
This summary encapsulates a year of transformation within the music industry, highlighting the resilience and adaptability of artists, labels, and the broader ecosystem in navigating the complexities of the digital age. As we reflect on these developments, it’s clear that 2023 may well be remembered as a pivotal year, marking the beginning of a new chapter in the music business.
Source: Global recorded music revenues grew by 9.8% in 2023 | Music Industry Blog
