Industry outlook

Industry economics

The music industry is one of the most dynamic. From vinyl, cassettes and compact discs to digital downloading and streaming, technology has always played a central role in transforming music distribution models. It is always searching for more atomized, disintermediated, and, above all, dynamic models. The next music industry transformation will be based on Web3. Blockchain technology improves efficiency by increasing trust and automation in digital asset ownership, distribution, and consumption. Artists can now work directly with their fans and monetise their audience more effectively. The music industry is a significant global economic and cultural movement. Total music revenues, including on-demand streams, CD sales, radio play, live events, and advertising, have risen to about $43 billion. Goldmans Sachs expects the overall revenue to reach $130 billion in 2030.
2022 Digital Music Services
2022 Music Events
2030 Expected Revenues
Smartphone Owners paying for streaming
USD 27 Bn
USD 29 Bn
USD 130 Bn
10%

The global industry is growing steadily

According to the industry body IFPI, global recorded music revenues grew by 18.5% to $25.9bn in 2021. There were 523 million users of paid streaming subscriptions at the end of 2021, up from 443 million. That’s just over 18% growth and 80 million new users in a single year. Paid subscription streaming revenues grew by 21.9% to $12.3bn in 2021, accounting for 47.5% of the total. This means ad-supported streaming revenues were around $4.6bn. The proportion of people streaming music on their smartphones is growing in developed markets from 18% in 2018 to 30% in 2030 (estimated) and in emerging markets from 3% in 2018 to 10% in 2030 (estimated).
Streaming
Physical
Performance Rights
Synchronization
+ 24.3%
+ 16.1%
+ 4.0%
+22.0%