That’s according to a new report published by MIDiA Research on Monday (March 18). MIDiA’s report arrives a few days before global recorded music body 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%) the size it was in 2015.
MIDiA also estimates in its report that streaming revenues grew 9.6% YoY to $21.9 billion in 2023 (see below).
The company notes, however, that “streaming growth lagged total market growth for the first time”, with streaming’s share of total recorded music revenues “falling slightly” to 62.5%.
Another key takeaway from MIDiA’s report is what it calls “a strategic shift towards superfan engagement” in 2023, a trend it says is “evidenced by the growth in expanded rights and a rebound for physical”.
MIDiA estimates that expanded rights revenue, which it calls “one of the main building blocks of tomorrow’s music business,” grew by 15.5% YoY to hit $3.5 billion in 2023 – accounting for 10% of all global recorded music revenues.
MIDiA says in its report that the estimated 9.8% YoY growth seen last year “highlights the industry’s resilience and adaptability,” and that “the changing mix of revenues points to an industry on the cusp of transformational change”.
MIDiA says that “the rise of the fan economy” is central to this change.
The company also reports that physical music revenues “experienced a resurgence” in 2023, with revenues climbing by an estimated 4.6% YoY.
MIDiA says that physical is “emerging as the industry kingmaker” and notes that “so far in this decade, each of the two years that physical revenues grew, industry revenue growth was strong, and in the two years physical fell, industry growth was slow”.
MIDiA also breaks out its estimates for major record company revenues, reporting that Universal Music Group “maintained its position as the largest label group” last year, capturing a 28.3% market share, with revenues totaling $9.9 billion.
Sony Music Group, according to MIDiA, was “the fastest growing major label” in percentage terms, with revenues rising by an estimated 11.6% YoY, claiming an estimated 0.3 points of market share, giving Sony Music Group a 20.3% share of the global recorded music market.
“The industry is beginning to bifurcate between the traditional, streaming-focused business and a new one in which fandom and creation will take centre stage.”
Mark Mulligan, MIDiA
MIDiA’s managing director and music industry analyst, Mark Mulligan, said: “The industry is beginning to bifurcate between the traditional, streaming-focused business and a new one in which fandom and creation will take centre stage.
“Welcome to the first year of tomorrow’s music business”.Music Business Worldwide
