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Music Industry Booms: 2023 Marks a 10.2% Global Growth
Insights from the 2024 IFPI Report

The music industry continues to show remarkable resilience and growth, according to the IFPI Global Music Report 2024. Last year, the global recorded music market grew by an impressive 10.2%, reaching a total value of $28.6 billion. This marks the ninth consecutive year of growth, painting a picture of an industry that is both global in scope and diverse in its offerings. This underlines the increasing importance of music as a dynamic cultural force that not only entertains, but also shapes and connects global markets.

The dominance of streaming in the global music market also continued unabatedly in 2023. Total revenue from streaming services reached an impressive USD 19.3 billion, representing 67.3% of the total market volume. This sector recorded year-on-year growth of 10.4%, with subscription-based streaming growing particularly strongly – an increase of 11.2% to 48.9% market share. These figures illustrate not only the ongoing shift towards digital distribution channels, but also the central role that streaming services play in the modern music industry.

Surprisingly, physical media recorded sales of 5.1 billion US dollars, which corresponds to an increase of 13.4%. This increase was primarily driven by strong demand for vinyl and CDs, particularly in Asia, where physical media accounts for almost half of the market share. This growth underlines the continued appreciation for physical formats as collector’s items and premium products.

Genre Trends Music Industry Booms

The global music industry’s growth in 2023 was widespread, with notable expansions across all regions. Almost every region reported increases in revenue, with significant growth noted in Latin America (19.4%), Asia (14.9%), and especially in Sub-Saharan Africa, where the market expanded by an impressive 24.7%. Within Asia, China and South Korea were standout performers, with revenue increases of 25.9% and 7.6%, respectively.

In this evolving market, record companies play a pivotal role, investing a substantial $7.1 billion annually in A&R and marketing. This investment is crucial as it supports artists through the complexities of digital rights, piracy issues, and the integration of new technologies like AI.

AI Music Industry Booms

The music industry is facing new challenges and opportunities through the use of artificial intelligence (AI). AI is not only influencing music production by allowing non-musicians to compose works, but also the way music is marketed and consumed through more precise targeting and personalized music experiences. At the same time, technologies such as AIgenerated music and deep fakes raise legal and ethical issues, particularly with regard to copyright and the authenticity of artist identities. These issues require clear guidelines and regulations to promote the
creative potential of AI while protecting the rights and trust of artists and consumers.

As the industry evolves, its global reach and the ability of record companies to adapt and innovate will be critical in supporting artists and delivering music to fans worldwide. With a continued emphasis on cross-cultural collaborations and embracing new markets, the music industry is set to continue its trajectory of growth and influence.

In conclusion, the 2024 IFPI Global Music Report not only showcases the health of the music industry but also its complexities and dynamism. As we look to the future, the industry’s ability to navigate technological advancements and market dynamics will likely dictate the next chapter of its global
story.

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