Global Music Industry Surges in 2023, Driven by Streaming Services and Physical Media, but Faces Challenges with Piracy and AI Misuse

Streaming popularity drives nine years of consecutive music sales growth

In 2023, the global sale of music records increased for the ninth consecutive year, driven primarily by a larger number of subscribers to streaming services. This growth was reflected in the revenue generated from streaming, which rose by 10.4 percent to $19.3 billion, accounting for more than half of the total revenue. The increase in streaming subscriptions was also significant, with over 667 million users, up 11.2 percent from the previous year.

Revenue from physical media such as CDs and vinyl increased by 13.4 percent, indicating a resurgence of interest in these formats among consumers. Royalties also grew by 9.5 percent, showing that ownership rights are still valuable in today’s digital age. However, there was a decline in digital music sales, which dropped by 2.6 percent despite being a major contributor to the industry’s growth in recent years.

The International Federation of the Phonographic Industry (IFPI) noted that these figures reflect a diverse and global sector with growth in all markets and regions. Sub-Saharan Africa saw the strongest growth at 24.7 percent, with South Africa leading the region with a 77 percent share of income. Latin America and Asia also experienced double-digit growth rates. Europe made up 25 percent of global revenue and grew by 8.9 percent while North America accounted for 41 percent of global revenue and saw an increase of just 7.4 percent in revenue growth rate respectively but still they were one of fastest growing region globally .

Despite this positive news, IFPI Chief Legal Officer Lauri Rechardt highlighted challenges such as streaming fraud, digital piracy, and potential misuse of artificial intelligence that need to be addressed responsibly to protect artists and publishing rights . It is crucial that these issues are tackled effectively to ensure fair compensation for creators and maintain a sustainable future for the music industry as it continues to evolve into new forms

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