In an era where attention spans appear to be shrinking, and entertainment is increasingly on-demand, music continues to hold its ground—both culturally and commercially. According to the International Federation of the Phonographic Industry (IFPI), global recorded music revenues climbed 4.8% in 2024, reaching US$29.6 billion. That marks ten years of consecutive growth, primarily driven by streaming and an increasingly connected global audience.

Unsurprisingly, streaming was the key driver of this growth. For the first time ever, streaming revenues exceeded US$20 billion, making up nearly 70% of the global market. Paid subscription services did the heavy lifting here, up 9.5% from the previous year, while the total number of paid subscription users reached 752 million—a 10.6% increase. By contrast, ad-supported streaming formats grew just 1.2%, reinforcing that the paying public is not only growing but sticking around.

To put things in perspective, the US$20 billion generated by streaming in 2024 was more than the entire recorded music industry made in any year between 2003 and 2020! It's an extraordinary shift redefining how music is consumed, monetised, and valued.

Despite the digital surge, the love for physical formats hasn’t wholly faded—though the overall category did see a decline of 3.1%. However, not all physical media are created equal. Ever the outlier, Vinyl grew for the eighteenth year in a row, up 4.6%. The ritual of dropping a needle still matters for some listeners. Performance rights revenue (Income earned when recorded music is played in public—like on radio, TV, in shops, venues, or streamed online) also played a steady role, rising by 5.9% to reach US$2.9 billion—the fourth consecutive year of growth in that category.

That growth story played out across every region globally, with several markets delivering double-digit gains. Latin America extended its hot streak with a 22.5% rise, driven almost entirely by streaming. In comparison, the Middle East and North Africa led the world with a staggering 22.8% jump—streaming accounting for nearly all of it. Sub-Saharan Africa also crossed a key milestone, surpassing US$100 million in revenue for the first time.

Australasia reported solid 6.4% growth, though Australia dropped out of the top ten global markets, overtaken by a surging Mexico. Asia’s momentum slowed compared to 2023, but China stood out with strong digital-led growth, while Japan held steady. Europe delivered an impressive 8.3% gain, and North America—still the most significant player—continued its steady climb, up 2.1% for the year.

But as much as this year’s report celebrates success, it also raises critical questions—particularly around the role of AI in music creation and consumption. IFPI CEO Victoria Oakley pulled no punches, warning that while record companies are embracing AI’s creative and experiential potential, a growing threat is posed by the unauthorised use of copyrighted music to train generative models. Oakley stated: 

Developers of generative AI systems ‘ingesting’ copyright-protected music to train their models without authorisation… poses a real and present threat to human artistry.

Her call to action? Policymakers must intervene to ensure that AI supports human creativity rather than supplant it—a sentiment that taps into a much broader, and still unfolding, debate around what AI might transform across the creative industries, and what should remain fundamentally human.

Ultimately, this year’s report makes clear that the recorded music industry’s current success is no accident. It results from years of patient investment in artists, technology, and fan engagement. Record companies have had to play the long game, balancing commercial risk with cultural stewardship.

However, while the IFPI’s topline figures are encouraging, the story is more complicated beneath the surface. One area the report doesn’t fully grapple with is how those billions are distributed—and here’s where the streaming era continues to raise uncomfortable questions.

As we reported recently, streaming services vary wildly in how much they pay artists. Qobuz, for instance, disclosed an industry-leading average payout of around US$0.01873 per stream, compared to less than half that from services like Spotify or Apple Music—and far less from platforms like YouTube Music. While overall revenue is up, that doesn’t mean all artists benefit equally. For many musicians, particularly independents, the economics of streaming remain precarious.

So yes, the music industry is growing—and innovating—and, by some measures, thriving. But the celebration should come with a caveat until the creators behind the music see a fairer share of that success. The objective measure of a healthy music ecosystem isn’t just how much money it generates—but how equitably that money flows. 

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