30+ HARMONIOUS MUSIC INDUSTRY STATISTICS [2023]

30+ HARMONIOUS MUSIC INDUSTRY STATISTICS [2023]

Music industry research summary. From vinyl to CDs and from digital downloads to digital streaming, the recorded music industry has seen some significant shifts in the last 20 years. Here are some current statistics about the music industry that will help paint a picture of where it’s been and where it’s going.

  • The U.S.’s recorded music industry earned $15.9 billion in revenue in 2022.
  • Music streaming accounts for 65% of the global recorded music industry’s revenue.
  • 82.2 million Americans have paid music streaming subscriptions.
  • From 2021 to 2026, the global music industry is expected to see a CAGR of 8.5%.
  • Only 9% of all music is sold as physical albums in 2022.

For further analysis, we broke down the data in the following ways:
Streaming | Genre | Earnings | Trends | Costs

GENERAL MUSIC INDUSTRY STATISTICS

The music industry permeates almost every aspect of our day to day lives. From hearing jingles in ads, to listening to that same Spotify playlist over and over again, it’s easy to see the importance of music. With that in mind, here are some interesting general facts about the music industry:

  • The annual revenue of the global recorded music industry is $26.2 billion as of 2022.
  • The U.S. is the top music market in 2022, followed by Japan, the U.K., and Germany.
  • Universal Music Group is the world’s largest record company, earning 32.1% of the global streaming and physical music industry’s revenue in 2020.
  • Independent record labels accounted for 31.4% of the world’s streaming and physical music sales revenue in 2020.
  • Sony Music Entertainment earned 20.6% of the global revenue earned from streaming and physical music sales in 2020.
  • 15.9% of the revenue earned by the world’s physical and streaming music sales in 2020 went to Warner Music Group.

MUSIC INDUSTRY BY MUSIC STREAMING

Streaming music has quickly become the most popular method of listening to the latest tracks, and consequentially, also the most profitable. To find out more about the impressive size of the music streaming industry, here are some key facts:

  • 65% of the global recorded music industry’s revenue comes from streaming.This 2021 percentage was up from the 2020 share of 61.9%, and it includes both subscription audio and ad-supported (unpaid subscription) streams. Here is the breakdown of where the global recorded music industry’s revenue came from in 2021:

    WHERE GLOBAL RECORDED MUSIC INDUSTRY’S REVENUE COMES FROM

    Segment Percentage of Total Industry Revenue
    Subscription Audio Streams 47.3%
    Physical 19.2%
    Ad-Supported Streams 17.7%
    Performance Rights 9.4%
    Downloads and Other Digital 4.3%
    Synchronisation 2.1%
  • As of 2017, about 35% of internet users access music via copyright-infringing methods.The most popular method of doing this was stream-ripping (illegally saving streamed music), with 30% of internet users participating in this practice. Illegally downloading music was also common, with almost 20% of internet users doing this.16- to 24-year-olds were the most likely to participate in any type of online music piracy, with 55% of this age using illegal methods to obtain songs.

Spotify holds 31% of the total subscribers of the music streaming market, the largest portion of any streaming service.

Apple Music comes next with 15%, and Amazon Music and Tencent Music each hold 13%. YouTube Music holds 8% of the market’s total subscriptions, NetEase has 6%, Deezer and Yandex each have 2%, and the remaining 10% belongs to a variety of other platforms.

 

  • Globally, there are 616.2 million people who have paid music streaming subscriptions.

    This was the number as of the end of 2022, and it was up by 93 million people from 2021. At the end of 2022, there were 82.2 million people with paid streaming subscriptions in the U.S. alone.

    MUSIC INDUSTRY BY MUSIC GENRE

    There are countless genres of music you could listen to, but some are more popular in the US than others. If you’re curious, we’ve gathered information about different music genres and their popularity.

     

    R&B and hip hop accounted for 30.7% of all on-demand audio streams in the U.S. in 2020

    This genre also held 28.2% of total album-equivalent consumption in 2020, a metric that accounts for physical sales, digital sales, and streaming.Rock had 16.3% of all on-demand audio streams in the U.S. in 2020.

  • This means “rock” is the second most popular genre in America, thanks in large part to the album “Queen’s Greatest Hits” and Elton John’s album “Diamonds,” the two rock albums with the largest album-equivalent consumption in 2020.Pop had 13.1% of all on-demand audio streams in the U.S. in 2020.This gave pop the title of the third most popular genre in 2020. However, as far as video streams went, it beat out rock with 13.5% of plays versus rock’s 11.4%.

MUSIC INDUSTRY BY EARNINGS

Music industry artists and publishers can make a lot of money off music. While not everyone is successful, the cultural importance of the industry means that those who are will hit it big.

  1. Independent artists earned $1.2 billion in revenue in 2020.This was the result of the artists direct (artists who don’t work with a recording label) seeing their total annual revenue grow by 34.1% from 2019 to 2020, and it means that artists direct held 5.1% of the recorded music market in 2020.The revenue earned by these artists grew much faster than the 7% that the industry’s revenue grew as a whole during this time period.
  2. Music publishers usually earn 50% of mechanical and residual income from a recorded song.For live performances, music publishing companies
    usually only earn 25% of performers’ income.

    • Globally, record labels spent $5.8 billion on A&R and marketing in 2017.
    • Breaking an artist into a major recorded music market can cost between $500,000 and $2 million.
    • In 2020, only 2% of music producers in the U.S. were female, while 98% were male.

The most popular YouTube music video in 2023 is Baby Shark, with over 12.3 billion views.

Napster pays the most per stream of any streaming service at $0.019 per play.

TIDAL comes next with $0.0125 per stream, and Apple Music takes third place, paying $0.00783. Spotify, the largest streaming platform in the world, is near the bottom of the list as far as what it pays artists, giving them between $0.003 and $0.005 per stream.

Music genre popularity changes over time, and the industry is always in pursuit of the next greatest hit. Knowing that, we’ve gathered some interesting music industry trends and projections:

  • The global music industry’s revenue increased from $45.5 billion in 2012 to an estimated $59.48 billion in 2020.Here is the year-by-year breakdown of the global music industry’s annual revenue:

    ANNUAL GLOBAL MUSIC INDUSTRY REVENUE OVER TIME

    Year Revenue
    2020 $59.48 billion
    2019 $56.74 billion
    2018 $53.77 billion
    2017 $50.88 billion
    2016 $48.23 billion
    2015 $46.01 billion
    2014 $44.87 billion
    2013 $45 billion
    2012 $45.5 billion
  • From 2020 to 2021, the revenue of the U.S. recorded music industry increased by 22.9%.The country’s recorded music industry saw $12.2 billion in revenue in 2020, which increased to $15 billion in 2021.
  • The global music industry’s annual revenue increased by 18.5% from 2020 to 2021.In 2020, the industry earned $21.9 billion in revenue, and in 2021, it earned $25.9 billion.
  • The number of Americans with paid streaming subscriptions has increased from 7.9 million in 2014 to 82.2 million in 2022.2022 had more than ten times the number of paid streaming subscribers than 2014 did.The total number of subscribers quickly jumped from 9.1 million in 2015 to 20.3 million in 2016, and it has increased by at least 10 million every year since then.
  • Global physical music sales earned $7.6 billion in revenue in 2012 and $5 billion in 2021.This 2021 revenue is the highest it’s been since 2017. Here is the breakdown of annual revenue earned by physical music sales around the world from 2012 to 2021:

    ANNUAL GLOBAL MUSIC INDUSTRY REVENUE BY PHYSICAL SALES OVER TIME

    Year Annual Revenue
    2020 $4.3 billion
    2019 $4.5 billion
    2018 $4.7 billion
    2017 $5.2 billion
    2016 $5.6 billion
    2015 $5.8 billion
    2014 $6.0 billion
    2013 $6.8 billion
    2012 $7.6 billion
  • The U.S. recorded music industry grew by 22.6% in 2021.Combined, the U.S. and Canada’s recorded music industry saw a 22% increase, which was significantly higher than the two countries’ 2020 growth rate of 7.5%.However, the Middle East and North Africa is the fastest-growing region for the recorded music industry, seeing 35% growth in 2021.

MUSIC INDUSTRY BY COSTS AND PRODUCTION

Some artists produce music cheaply in their garages, while others record in million-dollar studios. If you want to know more about the costs that go into making music, and how much the music industry spends, here are some stunning facts:

  • Globally, record labels spent $5.8 billion on A&R and marketing in 2017.
  • Breaking an artist into a major recorded music market can cost between $500,000 and $2 million.
  • In 2020, only 2% of music producers in the U.S. were female, while 98% were male.
  • The most popular YouTube music video in 2023 is Baby Shark, with over 12.3 billion views.

MUSIC INDUSTRY STATISTICS FAQ

  1. How much is the music industry worth?The music industry is worth $26.2 billion. This was the global recorded music industry’s annual revenue in 2022, and the largest music market within that is the U.S.In 2022, the U.S.’s recorded music industry earned $15.9 billion in revenue, which was an increase of 6% from its 2021 earnings of $15 billion. The U.S. also has 82.2 million of the world’s 616.2 million paid subscribers to music streaming services.All of these subscribers play a significant part in the global music industry, as streaming accounts for 65% of the industry’s revenue. More specifically, 47.3% of the global recorded music industry’s revenue comes from subscription audio streams, and 17.7% comes from ad-supported streams. 19.2% comes from physical music sales.
  2. Is the music industry growing?Yes, the music industry is growing. Worldwide, the global music industry’s revenue increased from $56.74 billion in revenue in 2019 to $59.45 billion in 2020.In 2021 alone, the U.S.’s recorded music industry grew by 22.9%. US and Canada together had a 22% growth rate this year, up from their 2020 rate of 7.5%.However, the Middle East and North Africa is the fastest-growing region for the global recorded music industry in 2021, with a 35% growth rate.

    In the future (between 2021 and 2026), the global music industry is expected to have a CAGR of 8.5%.

  3. What companies dominate the music industry?Universal Music Group, Sony Music Entertainment, and Warner Music Group dominate the music industry. These three companies are the world’s largest record companies, and they earned 32.1%, 20.6%, and 15.9%, respectively, of the revenue from global streaming and physical music sales in 2020.Together, they earned 68.6% of the world’s revenue from this industry. However, independent labels and artists are starting to collectively take background, as together, they earned 31.4% of the global streaming and physical music sales revenue in 2020.As far as the largest music streaming companies go, Spotify earns that title with a market share of 31%. Apple Music follows with 15%, and Amazon Music and Tencent Music come behind with 13% each.
  4. What are the latest trends in the music industry?The latest trends in the music industry are that streaming is supreme and that independent artists are earning more revenue than they used to. Music streaming accounts for 65% of the global recorded music industry’s revenue, which is up from the 61.9% it accounted for in 2020.More specifically, subscription audio streams make up 47.3% of the total industry revenue, while ad-supported streams account for 17.7%. Globally, 616.2 million people have paid music streaming subscriptions in 2022, which is an increase of 93 million from 2021.The other trend in the music industry is that independent artists are taking background from large record labels as far as revenue is concerned. This group of artists saw its total revenue grow by 34.1% from 2019 to 2020, which is a much larger rate than the industry’s total revenue growth rate of 7% during this same time period.
  5. How much of the music industry revenue comes from streaming?65% of the music industry’s revenue comes from streaming. This is the share as of 2021, and it’s up from the 2020s 61.9% share.Around the world, 616.2 million people have paid streaming subscriptions, which account for the majority of the industry’s streaming revenue: 47.3% of the global recorded music industry’s revenue comes from subscription audio streams, while just 17.7% comes from ad-supported streams (streams from free accounts with ads).Spotify has the largest share of the number of paid subscribers at 31%. Apple Music isn’t far behind at 15%, though, and neither is Amazon Music or Tencent Music, each of which has 13% of the subscriber market.

CONCLUSION

In 2022, the global recorded music industry earned $26.2 billion in revenue, and 65% of that came from streaming, both from paid and unpaid subscriptions. 616.2 million people around the world have paid subscriptions, 82.2 million of which are in the U.S.

Spotify has the largest portion of these subscribers, holding 31% of the market share by the number of subscribers. Apple Music comes next with 15%, but Apple Music beats Spotify as far as what it pays its artists: Apple Music pays $0.00783 per stream versus Spotify’s rates of $0.003 to $0.005 per stream.

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