An increase in paid streaming service subscribers ensured global recorded music revenues grew by 10.2% in 2023, according to a new report from the International Federation of the Phonographic Industry (IFPI).
The IFPI, who represent the recording industry worldwide, has published its Global Music Report 2024, revealing that total trade revenues reached $28.6 billion (£22.7 million) last year — marking a ninth consecutive year of growth.
Subscription streaming revenues played a major part in this growth, increasing by 11.2% alone to make up almost half (48.9%) of the global market. The number of paid streaming service subscriptions passed 500 million for the first time in 2023, and IFPI say that there are now more than 667 million users of paid subscription accounts.
Physical music revenues, meanwhile, were up by 13.4% last year while gains in income from performance rights rose by 9.5%, marking the third consecutive year in which both digital and physical revenues have simultaneously increased.
Every major international region experienced revenue growth in 2023, with five of the world’s seven regions (Asia, Latin America, Australasia, Middle East and North Africa, Sub-Saharan Africa) posting double-digit percentage gains. There was an 8.9% revenue growth in Europe, which includes the UK market (which alone posted an 8.1% increase), ensuring that the continent remains the second-largest region in the world for recorded music revenues.
Speaking about the findings of the Global Music Report 2024, IFPI’s Chief Financial Officer and Interim Joint Head 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 US$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.'
