In a testament to the enduring popularity of music streaming services, global recorded music revenues soared for the ninth consecutive year in 2023, reaching a staggering $28.6 billion, according to a report released by International Federation of the Phonographic Industry (IFPI).
IFPI’s annual Global Music Report attributed the robust growth in music revenue to the escalating number of paid streaming subscribers. For the first time in history, paid subscriptions to music streaming platforms surpassed 500 million worldwide, with an impressive tally of over 667 million users.
Streaming revenues emerged as the primary driver of growth, surging by 10.4 percent to $19.3 billion, with subscription streaming revenues experiencing an even more substantial increase of 11.2 percent. Additionally, revenues from physical formats like CDs and vinyl experienced a resurgence, climbing by 13.4 percent, alongside a notable uptick of 9.5 percent in performance rights revenues.
However, revenues from downloads and other digital formats experienced a slight decline of 2.6 percent, reflecting evolving consumer preferences in the digital landscape.
John Nolan, IFPI’s chief financial officer and interim joint head, celebrated the industry’s resilience, stating, “The figures in this year’s report reflect a truly global and diverse industry, with revenues growing in every market, every region, and across virtually every recorded music format.”
Sub-Saharan Africa emerged as the region with the fastest revenue growth, experiencing a remarkable increase of 24.7 percent. Latin America closely followed with revenues rising by 19.4 percent, marking the region’s 14th consecutive year of growth. Meanwhile, Asia witnessed a revenue surge of 14.9 percent, fueled by robust growth in physical format and digital revenues.
USA & Canada Witness a 7.4 percent Rise
Leading the charge, the USA and Canada together accounted for 40.9 percent of global recorded music revenues, experiencing a notable 7.4 percent increase compared to the previous year. The USA, the world’s largest recorded music market, saw a surge of 7.2 percent in revenues, while Canada, another significant player, witnessed a remarkable 12.2 percent jump.
Europe Shows Strong Growth at 8.9 percent
Europe maintained its position as the second-largest region globally for recorded music revenues, representing 28.1 percent of the total share. With an impressive growth rate of 8.9 percent, major European markets including the UK, Germany, and France recorded healthy expansions of 8.1 percent, 7.0 percent, and 4.4 percent, respectively.
Asia Records a Substantial 14.9 percent Increase
Asia emerged as the third-largest region, experiencing a substantial 14.9 percent growth in revenues driven by robust gains in physical and digital revenues. Notably, Japan, the second-largest market globally, saw a 7.6 percent increase, while China, the fifth largest, experienced a significant surge of 25.9 percent, marking the fastest growth rate among top 10 markets.
Latin America Soars by 19.4 percent
Latin America continued its impressive growth streak for the fourteenth consecutive year, witnessing a steep increase of 19.4 percent in recorded music revenues, outpacing the global growth rate. Brazil and Mexico, the region’s largest markets, saw double-digit percentage climbs of 13.4 percent and 18.2 percent, respectively, with streaming playing a pivotal role, constituting 86.3 percent of the region’s revenues.
Australasia Records 10.8 percent Growth
Australasia saw a notable growth of 10.8 percent in 2023, driven by a surge in subscription streaming revenues. Australia, a significant player in the global market, recorded an 11.3 percent increase, while New Zealand saw revenues rise by 8.4 percent.
Middle East & North Africa (MENA) Revenues Grow by 14.4 percent
Streaming revenues continued to dominate in the Middle East and North Africa (MENA), accounting for 98.4 percent of the market share. Total revenues in MENA surged by 14.4 percent, surpassing the global growth rate.
Sub-Saharan Africa Leads Growth with 24.7 percent Increase
Sub-Saharan Africa maintained its position as the fastest-growing region, surpassing 20 percent growth for another year with a remarkable increase of 24.7 percent fueled by gains in paid streaming revenues. South Africa, the largest market in the region, contributed 77.0 percent of regional revenues after experiencing a growth of 19.9 percent.
Last month, IFPI announced “Flowers” by Miley Cyrus as the world’s best-selling single in 2023, while K-pop sensation Seventeen’s album “FML” claimed the title of the biggest-selling album globally, underscoring the diverse and vibrant landscape of the music industry.