IFPI Reports 10th Consecutive Year of Global Gains…Though Growth Rate Is Slowing
First the good news: the global recorded music industry posted a 10th consecutive year of growth in 2024, as paid subscription accounts passed 750 million worldwide and vinyl continues to spin its happy tune.
Now, the not-so-good news: the rate of growth is slowing, at 4.8% for the full year.
On balance, the IFPI’s Global Music Report 2025, presented Wednesday, March 19th from London, is a picture of a healthy market that relies heavily on revenue from streaming models, with strong growth from several emerging markets, including south east Asia.
Total trade revenue hit US$29.6 billion during the period. By now, surely, the recording industry has passed the US$30 billion threshold.
Paid streaming subscriptions models was the “key driver” of growth, posting a 9.5% lift in value, as the number of subscription accounts breached three-quarters of a billion at 752 million, up 10.6%.
For the first time, streaming revenue topped US$20 billion and represented 69% of total recorded music revenues. That dollar figure is nothing to sneeze at: it’s a greater sum than the value of the entire global recorded music industry revenues for each year between 2003-2020.
Meanwhile, ad-supported streaming formats are losing traction. Growth from ad-supported brands came in at just 1.2%.
The market for physical product lost ground from the year-before period, though vinyl continued its streak in 2024, up 4.6% in value for the 18th consecutive year of growth.
Performance rights is a multi-billion-dollar business that’s on a streak of its own. Revenue from performance rights climbed by 5.9% to $2.9 billion last year for the fourth successive year of revenue gains.
“The essential role music plays in so many parts of our lives is evidenced in the continued growth of the global industry,” comments Victoria Oakley, presenting her first GMR as CEO of IFPI.
“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 global music ecosystem.”
Speaking on a panel for the unveiling of the GMR, Dennis Kooker, president, global digital business at Sony Music Entertainment, was both “incredibly positive” for the music industry and wary of the AI age. “Part of the slowdown is, fortunately, we’ve been very successful in diverting consumers to the paid model,” he explained. “With highly penetrated markets slowing down a bit on adding new customers is something reflected in the numbers.
As it relates to AI, he continued, “if we get the rights model right, I’m very bullish on what the future holds for music.”
Australasia was ahead of the curve. Recorded music revenues for the region reached US$629 million, up by 6.4%.
As previously reported, ARIA has separately posted wholesale results of $717 million in 2024, up 6.1% year-on-year, for the sixth consecutive year of growth and a full percentage point improvement on the global growth rate.
Despite its solid report card, Australia dropped out of the IFPI top 10, replaced by Mexico. New Zealand’s recorded music market grew by 7.8%.