The global recorded music industry experienced remarkable growth in 2023, with revenues surging by 10.2%, according to the latest data from the International Federation of the Phonographic Industry (IFPI) 2024 Global Music Report. This data was released on Thursday March 21 and shows a ninth consecutive year of growth and expansion, for music globally and the second highest growth rate in recorded music history.
Every region including Jamaica and the Latin American region saw growth in 2023 largely due to the integration of streaming in the region. Latin America specifically saw revenue increase of 19.4%, outpacing the global growth rate, surpassing every other region. This is the 14 consecutive year that the region is seeing revenue growth and last year the region grew by 25%.
Paid subscriptions to music streaming services surpassed the 500 million mark for the first time ever, underscoring the increasing popularity of streaming platforms among music consumers globally. Streaming revenues, particularly from subscription services, played a pivotal role in driving overall revenue growth, constituting nearly half (48.9%) of the global market.
Last year Sean Paul achieved a career milestone of 11 billion streams on the Spotify according to data supplied to WMV by the company. He was the most streamed Jamaican artist for the year globally and most streamed Jamaican of all time on Spotify, with top hits like “Rockabye” and “No Lie” surpassing 2 billion and 1 billion streams respectively.
Locally, Drake retained his title as Spotify’s most streamed artist in Jamaica for the third consecutive year in 2023, leading alongside seven other dancehall artists in the top ten. Ireland Boss and Malie Donn’s “V6” emerges as the top streamed song, surpassing 10 million streams on Spotify alone. The producer, Ireland Boss, recounts the song’s success and negotiations with major labels.
Despite offers from prominent labels, Ireland remains independent, citing a deal falling through. Valiant also makes a significant mark with three songs on the top streamed list. Masicka’s “438” stands out as the only Jamaican album on Spotify’s most streamed albums list for 2023 in Jamaica, alongside releases from Drake and Nicki Minaj.
The IFPI’s Global Music Report reveals a positive trend across all regions, with record companies’ concerted efforts and investments contributing to revenue growth in every market. Notably, five out of the world’s seven regions posted double-digit percentage gains, demonstrating the industry’s widespread momentum.
In his statement on the release of the report, IFPI’s Chief Financial Officer and Interim Joint Head, John Nolan, emphasized the industry’s global and diverse nature, with revenues increasing across various formats and regions. “The sustained growth of the recorded music market is encouraging, but it’s also right for us to acknowledge the challenges the industry faces, including streaming fraud, digital piracy in all its forms and, of course, the threat from the abuse of generative artificial intelligence if it is not developed responsibly and with respect for artists’ and labels’ rights.
Nolan also attributed the industry’s success to record companies’ substantial investments in artists and their careers, totaling over US$7.1 billion annually on A&R and marketing alone.
Moreover, Lauri Rechardt, IFPI’s Chief Legal Officer and Interim Joint Head, highlighted the challenges confronting the industry, including streaming fraud, digital piracy, and the potential misuse of generative artificial intelligence. “The sustained growth of the recorded music market is encouraging, but it’s also right for us to acknowledge the challenges the industry faces, including streaming fraud, digital piracy in all its forms and, of course, the threat from the abuse of generative artificial intelligence if it is not developed responsibly and with respect for artists’ and labels’ rights,” Rechardt said.
He added, “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.”
Rechardt emphasized the importance of responsible AI practices and effective measures to combat unauthorized uses, ensuring a sustainable music ecosystem for the future.
Regionally, significant revenue growth was observed across all markets:
- USA & Canada: Revenues rose by 7.4%, driven by robust gains in both the USA and Canada, the largest and tenth-largest recorded music markets, respectively.
- Europe: With revenue growth of 8.9%, Europe retained its position as the second-largest region globally, buoyed by healthy performances in key markets such as the UK, Germany, and France.
- Asia: Revenues surged by 14.9%, propelled by strong growth in physical and digital revenues, particularly in Japan and China.
- Latin America: The region witnessed a remarkable revenue increase of 19.4%, outpacing the global growth rate, with streaming driving the majority of revenues.
- Australasia: Recording double-digit percentage growth of 10.8%, Australasia experienced accelerated revenue growth, led by Australia and New Zealand.
- Middle East & North Africa: Streaming revenues dominated the region, contributing to a 14.4% increase in total revenues.
- Sub-Saharan Africa: With the fastest growth rate of any region at 24.7%, Sub-Saharan Africa showcased substantial gains in paid streaming revenues, with South Africa leading the charge
IFPI is a global organization representing over 8,000 members across 70 countries. It advocates for the recording industry worldwide, promoting the economic and cultural value of recorded music. IFPI campaigns for the rights of record producers and works to expand the commercial uses of recorded music through licensing and generating commercial value. The organization operates as a global team, bringing together experts from different departments and regions.
