The IFPI International Music Report has lengthy been considered because the definitive snapshot of the worldwide music trade’s well being (or in any other case). In spite of everything, the worldwide recorded music trade commerce physique’s report has chronicled each the trade’s lengthy, painful interval of bodily decline and celebrated its streaming-led return to progress.
 
However the publication of its 2024 report — launched Thursday at a press convention in London — felt like a type of years when the numbers are barely lagging behind the true story of what’s occurring within the trade.
 
The statistics, actually, paint an nearly across-the-board image of a enterprise in good well being. International recorded music revenues had been up 10.2% in 2023 to $28.6 billion, the ninth consecutive yr of progress, and higher than final yr’s 9% rise.
 
The variety of paid music streaming subscriptions handed 500 million for the primary time, with subscription streaming up 11.2%, whereas there are actually 677 million customers of paid subscription accounts globally.
 
There was progress in each area of the world, starting from stable will increase in mature markets such because the U.S. & Canada (+7.4%), Europe (+8.9%) and Australasia (+10.8%) to extra substantial rises in growing music markets within the Center East & North Africa (+14.4%), Asia (+14.9%), Latin America (+19.4%) and Sub-Saharan Africa (+24.7%).
 
A lot of these charges in contrast favorably with final yr’s numbers, when the U.S. & Canada solely went up 5.1% and Europe might solely handle a 7.5% enhance, as long-awaited will increase to the value of streaming subscriptions lastly filtered by.
 
It appears clear although, that the explosive progress that has powered the trade restoration in these markets is now levelling off. And, because the IFPI panel – comprising executives from Common Music Group, Sony Music Leisure, Warner Music Group and indie Embassy Of Music – took to the stage, it was evident that there are different issues lingering past the numbers.
 
In spite of everything, because the 2023 survey interval ended, there have been tons of of layoffs throughout the recorded-music trade, notably at Common and Warner — and, certainly, at streaming providers as nicely, as famous by Konrad Von Löhneysen, founder and director of Embassy Of Music — whereas senior executives have talked of getting to “redesign” how labels work for the brand new music local weather.
 
Add in Common Music Group’s on-going dispute with TikTok – to not point out the chance that the app might be banned within the U.S. – and the imprecise but doubtlessly existential menace of synthetic intelligence, and it’s no surprise the executives had been serving a facet order of warning with their upbeat important course.
 
“The fact is that we’re at the start levels of one other transformational occasion for the music trade,” mentioned Dennis Kooker, President of International Digital Enterprise at Sony Music Leisure, who warned music discovery was far more difficult within the fashionable world of “fragmented” audiences.
 
When the panel was requested by Selection about what the trade layoffs and requires a brand new record-company mannequin will imply, considerably satirically it was Kooker – representing the one main which hasn’t lower workers considerably in latest months – who stepped as much as reply.
 
Noting that the enterprise has already gone by “two transformational occasions” in latest occasions – the shift from bodily to digital, and the shift from an possession mannequin to streaming’s entry system – he mentioned the trade was now getting ready for the subsequent one.
 
“If we’re in a transformational second, what we’ve discovered from the previous is we’ve bought to regulate forward of that,” Kooker mentioned. “Our problem is to anticipate modifications out there and ensure we’re adapting so we proceed to be extremely related and do crucial job that we have now, which is to deal with our artists and ship alternatives in order that they’ll construct and develop their careers.”
 
In the mean time, AI appears to characterize each a problem and a chance for working musicians. Adam Granite, Common Music Group’s EVP of Market Improvement, famous that UMG itself holds AI-related patents and has embraced alternatives within the sector, however confused the corporate’s opposition to programs that use music “with out authorization and compensation.”
 
“We consider it’s completely attainable to develop and undertake AI expertise whereas additionally guaranteeing artists’ rights are protected,” he added.
 
Whereas not naming particular firms, Kooker additionally warned that ad-supported/free streaming providers, particularly within the short-form video sector, wanted to herald extra income for the trade, noting the potential for “hybrid” tiers.
 
“We haven’t progressed ad-supported tiers in established markets, particularly within the worst-monetizing kind of ad-supported merchandise: short-clip video platforms that haven’t any likelihood to result in paid subscriptions and [can] develop into major consumption platforms for a lot of younger shoppers,” he mentioned. “There’s been no evolution of the monetary fashions without cost tiers because the starting of the streaming period, and that must be re-examined.”
 
These points will possible develop into extra urgent because the yr progresses however, for now, there was loads of consolation within the numbers and developments contained throughout the report.
 
Bodily revenues had been up year-on-year by 13.4%, whereas efficiency rights income jumped 9.5% and synchronization inched up 4.7%. Even digital downloads, that deadest duck of a format, had been solely down 2.6%, whereas the panel all had excellent news tales to report.
 
Leila Oliveira, President of Warner Music Brazil, hailed Latin America as “a cultural powerhouse”, including: “It’s nice to see it lastly getting the popularity it deserves.”
 
Marie-Anne Robert, MD of Sony Music Leisure France talked about how the elevated demand for home repertoire in lots of markets, together with her personal, was boosting funding in native artists. Kabiru Bello, Warner Music Group’s VP of International A&R enthused concerning the cross-pollination of markets and the artist collaborations occurring between completely different areas, whereas Granite noticed large potential for extra progress in markets from India to Nigeria.
 
And Von Löhneysen and Vanessa Bosåen, president of Virgin Music Group UK, confused that document firms stay important to artists seeking to navigate the quickly altering trade panorama.
 
The numbers actually again up such positivity, displaying an trade so steady that the Prime 10 markets remained precisely the identical as final yr (the U.S. remains to be No.1, adopted by Japan, the U.Okay. and Germany, though fifth-placed China was the quickest rising nation, posting a 25.9% surge in revenues).
 
However one suspects that the subsequent 12 months might convey a a lot larger redrawing of music trade structure. And, if that occurs, the IFPI’s 2025 International Music Report ought to make for very fascinating studying certainly…

Learn the total report right here.