IFPI, the organization that represents the recorded music industry worldwide, has published its Global Music Report, which reports on global trade revenues for the recorded music industry in 2023.
The headline stat from IFPI‘s report, which you can read in full here: Global recorded music revenues rose 10.2% YoY in 2023 to reach USD $28.6 billion.
Last year (2023) marked the global music market’s ninth consecutive year of growth.
Subscription streaming revenues grew by 11.2% YoY last year, accounting for 48.9% of the global market, which in dollar terms, means that subscription streaming revenues reached $14 billion in 2023.
In July 2023, Spotify increased its flagship subscription prices in 53 markets, including the US, typically by around 10%.
In addition to Spotify, IFPI’s numbers will also have been affected by price rises by other streaming services such as Apple Music (October 2022), Amazon Music (January 2023), and YouTube Music/Premium (August 2023).
Total streaming revenues (including both paid subscription and advertising-supported) grew 10.4% YoY to reach $19.3 billion in 2023 and accounted for more than two-thirds (67.3%) of the total global market.
In 2023, the number of paid subscriptions to music streaming services passed 500 million for the first time, according to IFPI. There are also now more than 667 million users of paid subscription accounts.
Elsewhere, IFPI reports that physical revenues grew 13.4% YoY to $5.1 billion in 2023, while performance rights revenues rose by 9.5% YoY to $2.7 billion.
IFPI also breaks down its latest numbers geographically, showing that Sub-Saharan Africa (SSA) was the fastest-growing music region in 2023. (It was also the fastest-growing music region in 2022.)
Recorded music revenues in Sub-Saharan Africa grew by 24.7% in 2023, fuelled, according to IFPI, by a 24.5% rise in paid streaming revenues.
Europe saw growth of 8.9% in 2023, while the USA & Canada – the world’s largest region in revenue terms – grew 7.4% in 2023.
In Latin America, recorded music revenues rose 19.4%, marking the region’s 14th consecutive year of revenue growth. IFPI reports that “there were double-digit percentage climbs in revenues” in Brazil (+13.4%) and Mexico (+18.2%), the region’s largest markets. Streaming was the key driver behind the region’s growth and made up 86.3% of its revenues in 2023.
In the Middle East and North Africa (MENA), revenues rose by 14.4% in 2023. Australasia saw growth of 10.8% in 2023, boosted by an increase in subscription streaming revenues (+13.5%).
Revenues in Asia rose by 14.9% in 2023. In Japan, the world’s second-biggest market, revenues were up by 7.6%. China (the world’s fifth largest market) saw growth of 25.9%, which IFPI notes was “the fastest rate of increase in any Top 10 market”.
The world’s Top 10 music markets in 2023 remained unchanged compared to 2022. According to the IFPI, the Top 10 music markets in 2023 were:
- 1. USA
- 2. Japan
- 3. UK
- 4. Germany
- 5. China
- 6. France
- 7. South Korea
- 8. Canada
- 9. Brazil
- 10. Australia
“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.”
John Nolan, IFPI
Commenting on the release of the Global Music Report, IFPI’s Chief Financial Officer and Interim Joint Head of IFPI, John Nolan, said: “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.
“For the third year in succession, both physical and digital formats grew with a strong rise in the users of paid streaming subscribers – as well as price increases – contributing significantly to total revenue growth.
“This growth results from record companies’ sustained investment in artists and their careers – more than USD $7.1 billion annually on A&R and marketing* alone – and the impact it has on music ecosystems all over the world. Fans are increasingly valuing music, with unprecedented choice and access to new releases, with 2023’s IFPI Global Charts including a diverse range of new genres and artists. This is testament to the talent of these artists, the passion of their fans, and the work of record labels both in championing artists and providing the best possible foundations for their global success.
“Music has shown time and time again that it can evolve and innovate but the report demonstrates it is the partnership between artist and label which is at the heart of the growth of music markets worldwide with the ensuing positive impact these have on their local economies.”
IFPI’s Chief Legal Officer and Interim Joint Head of IFPI, Lauri Rechardt, added: “The sustained growth of the recorded music market is encouraging, but it’s also right for us to acknowledge the challenges the industry faces, including streaming fraud, digital piracy in all its forms and, of course, the threat from the abuse of generative artificial intelligence if it is not developed responsibly and with respect for artists’ and labels’ rights.
“Music fans greatly value authenticity and our industry has a strong track record of licensing music and supporting the development of new services that create these experiences for fans.
“That said, we still need effective tools and the support of authorities to tackle unauthorised uses and to ensure the music ecosystem remains one that is sustainable for the long-term.”Music Business Worldwide