The global recorded music industry returned to a higher level of growth in 2023, according to a new report from MIDiA Research.
Following a slower 2022, revenue growth last year was up by 9.8% to reach $35.1 billion. This growth, which outpaced the 7.1% increase seen in 2022, means that the market is now more than double (124.5%) the size it was in 2015.
“The growth highlights the industry's resilience and adaptability, but the changing mix of revenues points to an industry on the cusp of transformational change,” stated MIDiA Research.
The research from MIDiA comes ahead of this week’s IFPI Global Music Report.
Following the increasing focus on superfans in recent months, the MIDiA report underlines the rise of the fan economy, with both physical and expanded rights (such as merchandise) growing significantly in 2023.
Expanded rights revenue, highlighted as “one of the main building blocks of tomorrow’s music business” by MIDiA, grew by 15.5% year-on-year to hit $3.5 billion – 10% of all global revenues.
IFPI recently named K-pop act Seventeen (pictured) as winners of the Global Album Award for 2023. FML was the most pre-ordered album in K-Pop history and debuted at No.1 in South Korea, as well as reaching No.1 in Japan and charting in the Top 5 in France and the US.
After a year of decline in 2022, physical music experienced a resurgence in 2023, with revenues climbing by 4.6%.
“Physical is emerging as the industry kingmaker: 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,” noted the MIDiA report. “Physical success is the difference between good and great.”
Streaming revenues reached $21.9 billion in 2023, representing a 9.6% year-on-year increase. However, streaming growth lagged total market growth for the first time, with its share of total revenues falling slightly to 62.5%.
Universal Music Group maintained its position as the largest label group with a 28.3% market share, with revenues totalling $10.0 billion.
Sony Music Group emerged as the fastest growing major label, with revenues rising by 11.6%, increasing market share by 0.3 points at 20.3%.
Non-major labels grew revenues by 13.0% in 2023, compared to 9% for the major labels. It means that non-major label market share was up for the fourth consecutive year, reaching 31.5%.
Mark Mulligan, MIDiA’s managing director and music industry analyst, 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.”
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