Global recorded music revenues increased by approximately 9.8% over one year in 2023 to reach USD $35.1 billion.
This is what a new report published by MIDiA Search Monday March 18. The MIDiA report arrives a few days before the world body of recorded music IFPI publishes its annual Global Music Report, which includes data on the global recorded music market for 2023.
MIDiA notes that the global recorded music market is now more than double (124.5%) its size in 2015.
MIDiA also estimates in its report that streaming revenues have increased 9.6% over one year has $21.9 billion in 2023 (see below).
The company notes, however, that “for the first time, streaming growth lagged that of the total market,” with streaming’s share of total recorded music revenue “falling slightly” to 62.5%.
Another key point to remember from MIDiA’s report is what it calls “a strategic shift toward superfan engagement” in 2023, a trend it says is “demonstrated by the growth of expanded rights and a rebound in physical rights.”
MIDiA estimates that the increase in revenue from rights, which it considers “one of the main building blocks of the music sector of tomorrow”, has increased by 15.5% over one year hit $3.5 billion in 2023 and represented ten% of all global recorded music revenues.
MIDiA said in its report that the estimated 9.8% year-on-year growth seen last year “highlights the resilience and adaptability of the sector” and that “the changing revenue mix indicates a sector on the cusp of transformational change “.
MIDiA says “the rise of the fan economy” is at the heart of this change.
The company also reports that physical music revenues “experienced a resurgence” in 2023, with revenues expected to increase. 4.6% over one year.
MIDiA claims that physical is “emerging as the industry’s kingmaker” and notes that “so far this decade, in each of the two years that physical revenues have increased, industry revenue growth has been strong, and in both physical years, industry growth has been slow. “.
MIDiA also presents its revenue estimates for major record labels, reporting that Universal music group “maintained its position as the largest label group” last year, capturing a 28.3% market share, with a turnover totaling $9.9 billion.
Sony Music Groupaccording to MIDiA, was “the fastest growing major label” in percentage terms, with revenues up approximately 11.6% year-over-year, claiming an estimated market share of 0.3 points, giving Sony Music Group has a 20.3% share of the global recorded music market. .
“The industry is beginning to bifurcate between the traditional, streaming-driven sector and a new sector in which fandom and creation will take center stage.”
Mark Mulligan, MIDiA
Mark Mulligan, Managing Director and Music Industry Analyst at MIDiA, said: “The industry is beginning to bifurcate between the traditional, streaming-driven sector and a new sector in which fandom and creation will take center stage .
“Welcome to the first year of the music business of tomorrow”.Music Business Worldwide