Global Recorded Music Revenues Reach $29.6 Billion in 2024: A Deep Dive into the Industry’s Surge

On March 19, 2025
Global Recorded Music Revenues Reach $29.6 Billion in 2024: A Deep Dive into the Industry’s Surge

Table of Contents

  1. Key Highlights
  2. Introduction
  3. The Streaming Revolution: A Key Player
  4. Regional Breakdown of Revenue Growth
  5. The Shift from Physical to Digital: An Ongoing Transformation
  6. The Implications of AI in Music
  7. Voices from the Industry
  8. Concluding Thoughts
  9. FAQ

Key Highlights

  • Record Growth: Global recorded music revenues hit $29.6 billion in 2024, representing a 4.8% increase year-on-year.
  • Subscription Streaming Surge: Paid music subscriptions ballooned to 752 million, up 10.6%, driving streaming revenues to $20.4 billion, which accounted for 69% of total recorded music revenues.
  • Regional Growth: Latin America, MENA, and Sub-Saharan Africa demonstrated remarkable growth, ranging from 22.5% to 22.8%, while physical sales continued to decline.

Introduction

As digital landscapes evolve, the music industry is experiencing unprecedented growth, with global recorded music revenues jumping to a remarkable $29.6 billion in 2024. This increase of 4.8% year-over-year can be attributed largely to the ongoing popularity of subscription streaming services. The International Federation of the Phonographic Industry (IFPI) recently released its Global Music Report 2025, presenting a landscape filled with promise amid ongoing challenges, particularly in physical sales markets.

The dramatic transformation and reliance on digital formats underscore the evolving preferences of global consumers. With paid music subscriptions growing to 752 million, a notable shift in how audiences are consuming music is unveiled. Here, we delve into the data and examine regional dynamics as well as future challenges that the industry faces.

The Streaming Revolution: A Key Player

In 2024, subscription streaming revenues surged to $15.15 billion, making up a significant 51.2% of global music market share. This growth, characterized by a 9.5% increase from the previous year, reflects consumers' shifting preferences toward digital access over physical purchases. The following statistics illustrate the prominent trend:

  • Total streaming revenues (including paid subscriptions and ad-supported formats) surpassed $20 billion for the first time, culminating at $20.4 billion.
  • Paid subscription streaming revenues represented 51.2% of the total global music revenues.
  • Free, ad-supported streaming platforms grew modestly by just 1.2%.

Given that approximately 69% of overall music revenues stemmed from streaming, it is no surprise that industry stakeholders are focusing heavily on enhancing user experience through innovation and technological adaption.

Regional Breakdown of Revenue Growth

A dissection of the global data reveals notable variances among different geographical regions. Three significant areas deserve attention due to their impressive growth trajectories: Latin America, the Middle East and North Africa (MENA), and Sub-Saharan Africa.

Latin America

Latin America is enjoying a boom in recorded music revenues, achieving an impressive growth rate of 22.5%. Streaming is central to this expansion, accounting for 87.8% of the region's total music revenues. Brazil has emerged as a standout, exhibiting a staggering revenue uptick of 21.7%. Notably, Mexico has claimed its position as the world’s tenth-largest music market, surpassing Australia.

Middle East and North Africa (MENA)

MENA exhibited a remarkable growth rate of 22.8% last year. Streaming services dominate the market, responsible for 99.5% of total revenues. This region is rapidly becoming a focal point for investors and artists alike, showcasing the potential of digital formats.

Sub-Saharan Africa

After reaching its milestone of surpassing $100 million in recorded music revenues, Sub-Saharan Africa registered a 22.6% surge. South Africa constitutes the largest market within this region, accounting for 75% of total revenues, further emphasizing the importance of local artistic talent.

North America and Europe: Slower Growth Stagnation?

While overall global revenues surged, North America and Europe displayed more muted growth. In North America, which represents the largest share of global recorded music revenues at 40.3%, the growth was recorded at only 2.1%. The U.S., as the leading market, barely accrued year-on-year growth of 2.2%, highlighting potential market saturation concerns.

Similarly, Europe showed a more robust increase of 8.3%, with notable performances in major markets like the UK (4.9% growth), Germany (4.1%), and France (7.5%). However, this may indicate a shift in focus to emerging markets that are demonstrating higher growth potential.

The Shift from Physical to Digital: An Ongoing Transformation

Despite the impressive growth in streaming, the decline in physical sales is evident, with global physical revenues decreasing by 3.1% to $4.8 billion. The figures are telling:

  • CD revenues fell by 6.1%, while music video sales nosedived by 15.5%.
  • Yet, vinyl records climbed to $1.2 billion, representing an 18th consecutive year of growth at 4.6%.

This long-standing transition from physical formats to digital consumption continues to reshape the music landscape, calling attention to the need for innovation in traditional formats.

The Implications of AI in Music

The role of artificial intelligence in shaping the music industry is another critical aspect highlighted in IFPI’s report. As Victoria Oakley, CEO of IFPI, aptly noted, the potential for AI to enhance creativity cannot be overlooked. However, she expressed concern over the unauthorized use of copyrighted material in training AI systems, arguing that it poses a genuine threat to artistry.

Record labels are increasingly tasked with finding the balance between embracing new technological advancements while safeguarding the rights and revenues of artists. This expectation from consumers and policymakers alike emphasizes the need for an artist-centric approach to innovation.

Voices from the Industry

Leaders from major music labels echoed sentiments of collaboration and innovation during discussions surrounding the report. Sir Lucian Grainge from Universal Music Group stressed the importance of elevating artist-centric principles—suggesting that the music industry must collaboratively nurture an environment that not only rewards creative talent but also embraces technological progress.

Rob Stringer from Sony Music similarly advocated for responsible technological developments that respect artists’ rights while driving industry growth. Warner Music's Robert Kyncl conveyed that collaboration across sectors must sustain a thriving music ecosystem as the future remains uncertain.

Concluding Thoughts

The data presented by IFPI portrays a music industry that, despite underlying challenges, is thriving in a digital-first world. The numbers signify not just resilience but a preference shift toward innovation and accessibility, something that can profoundly impact artists and fans alike.

As markets stabilize, stakeholders must prioritize creative artist support and responsible innovation, particularly as emerging technologies reshape how music is produced and consumed. As the ecosystem grows, the commitment to advancing artist-centric principles will be critical to ensuring sustained industry health.

FAQ

Q: What is the primary driver of growth in global recorded music revenues?
A: Subscription streaming is the key driver, with revenues from paid subscription accounts growing by 9.5% year-on-year, accounting for 51.2% of total revenues.

Q: Which region witnessed the most significant revenue growth in 2024?
A: Both the Middle East and North Africa (22.8%) and Latin America (22.5%) recorded the highest revenue growth, reflecting a strong demand for streaming services.

Q: How are physical music sales performing globally?
A: Physical music revenues have seen a decline, down by 3.1%, with notable decreases in CD and music video sales. However, vinyl continues to grow.

Q: What role does AI play in the music industry according to the IFPI report?
A: AI is seen as a potential enhancer of creativity and artist experiences. However, concerns about unauthorized use of copyrighted material in AI training models pose significant industry challenges.

Q: What does the future hold for the music industry based on current trends?
A: The industry is expected to continue prioritizing digital formats and innovations, focusing on artist support while addressing challenges posed by technology and changes in consumer behavior.

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