The music industry is booming as it hits an all-time high when streaming surpasses $20 billion for the first time, constituting nearly 70% of all recorded music revenues. While subscription streaming gained momentum, physical music sales took a hit, thus, transforming global consumption levels in music.
Streaming Is Growing
Streaming remains an important factor behind the music industry’s growth According to IFPI’s latest Global Music Report, streaming has generated a total revenue reaching $29.6 billion in 2024, marking the 10th consecutive year of growth. Subscription streaming revenue jumped 9.5%, pushing total streaming earnings past $20 billion for the first time.
IFPI noted that streaming revenue alone is now larger than the entire recorded music industry’s annual earnings between 2003 and 2020. In total, streaming accounted for 69% of global recorded music revenue in 2024.
More People Are Paying for Streaming
The number of paid streaming subscribers grew by 10.6%, reaching 752 million users worldwide by the end of 2024. While subscription services saw strong gains, advertising-supported streaming revenue only increased by 1.2%, showing that ad-supported platforms are not growing as fast as paid models.
Global Growth and Regional Success
Every region of the world saw an increase in recorded music revenue in 2024. The Middle East & North Africa led the way with 22.8% growth, followed closely by sub-Saharan Africa (22.6%) and Latin America (22.5%).
Europe saw an 8.3% rise, while the U.S. and Canada grew by just 2.1%, and Asia increased by 1.3%. The report highlighted that the Middle East & North Africa market is almost entirely driven by streaming, which accounts for 99.5% of total revenue in the region.
Physical Sales Struggle But Vinyl Sales Continue To Rise
While streaming dominates, physical music formats had a tough year, with revenue declining by 3.1%. However, vinyl sales continued to rise, growing 4.6% in 2024, marking the 18th consecutive year of growth for the format.
Industry Leaders React to Streaming’s Impact
While the global music industry continued to grow, the pace of growth slowed to 4.8% in 2024, down from 10.2% in 2023. However, IFPI CEO Victoria Oakley emphasized that the industry remains strong and full of potential.
“The essential role music plays in so many parts of our lives is evidenced in the continued growth of the global industry,” Oakley said during the London event unveiling the IFPI Global Music Report. She also pointed to the success of artists like Charli XCX, Taylor Swift, Benson Boone, and Chappell Roan, as well as the rising popularity of country music.
Oakley remained optimistic about the future, highlighting 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 music ecosystem.”
Meanwhile, Gee Davy, CEO of the Association of Independent Music (AIM), acknowledged that while rising streaming revenues are a positive sign, emerging artists are struggling under new streaming policies.
“All the same, fast action is needed to support the U.K.’s music businesses to ensure that they can compete in the new global market dynamics,” Davy stated.
She expressed concern over streaming model changes, saying: “With the streaming market coming of age, we call on streaming platforms to ensure that those on the way up aren’t unfairly penalized under the guise of so-called ‘artist-centric’ model changes.”
These insights reflect the two sides of the streaming boom, while revenues continue to climb, the debate over fair compensation for artists remains ongoing.
Looking Ahead
With streaming levels higher than ever and new innovations altering the landscape, record labels and streaming platforms will have a dominant role in determining the future of music. Although subscription formats are healthy, issues around revenue splits and artist payouts remain contentious.
As the business changes, artists, record labels, and fans will have to adjust to a music world in flux. Where streaming reigns supreme, but barriers continue for those attempting to crack the industry.
