Toronto, 21 March, 2024: Global recorded music revenues reached US$28.6 billion in 2023, an increase of 10.2% year-over-year and the ninth consecutive year of growth, according to the IFPI’s Global Music Report 2024. The report provides a comprehensive annual review of the global recorded music market and analyzes issues and trends facing the industry today.

Global revenue growth was largely driven by streaming revenues, with subscription streaming increasing by 11.2% and accounting for nearly half (48.9%) of the global market. In 2023, the number of paid subscriptions to music streaming services surpassed 500 million for the first time, with 667 million users of paid subscription accounts globally.

In Canada, the music market grew by 12.19% in 2023 to a total of US$659.6 million, ensuring Canada maintained its place as the 8^th largest music market in the world. This growth was largely due to streaming revenues, which saw an 8.6% increase to US$506.8 million. Subscription streaming accounts for the bulk of those revenues, with US$404.2 million, up 10.1% year-over-year. Ad-supported audio streaming was up 4.6% to US$59.1 million, while ad-supported video streaming increased slightly to US$43.5 million in 2023.

“As Canada modernizes the Broadcasting Act and works to bring streaming services into the fold, this report serves as a reminder of the value of these platforms to Canadians. We’re pleased to see more and more Canadians turning to licensed sources to support the artists they love most. We will continue our work to ensure Canadian regulatory frameworks don’t push Canadians to unlicensed listening,” said Patrick Rogers, CEO of Music Canada.

Mirroring a global trend, Canada saw strong growth in other formats too. Physical revenues in Canada jumped nearly 20% (19.9%) year-over-year to US$78.7 million in 2023, with a 30.2% spike in vinyl revenues (to US$56.5 million) accounting for the bulk of that growth.

“The sustained growth of the music market in Canada is due in large part to the efforts of the record companies, whose continued investment in and passion for their artists is propelling them to new heights,” said Rogers.

Commenting on the release of the Global Music Report, IFPI’s Chief Financial Officer and Interim Joint Head of IFPI, John Nolan, said: “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.”

While the global growth in licensed music revenues is heartening, the report also highlights the challenges facing the industry – namely, streaming fraud and the abuse of generative AI.

“Music fans greatly value authenticity and our industry has a strong track record of licensing music and supporting the development of new services that create these experiences for fans. That said, we still need effective tools and the support of authorities to tackle unauthorised uses and to ensure the music ecosystem remains one that is sustainable for the long-term,” said IFPI’s Chief Legal Officer and Interim Joint Head of IFPI, Lauri Rechardt.

Music Canada, alongside IFPI, recently worked to shutter a group of nine streaming fraud websites operating in Canada – an example of Music Canada’s continued efforts to protect rightsholders and the integrity of the Canadian streaming marketplace. And as governments around the world consider the implications of generative AI, Music Canada continues to work to ensure human artistry is protected and valued.

“Our industry is excited by the value offered by artificial intelligence, but only when this tool is used responsibly. Fundamentally, we believe that generative AI systems that ingest copyrighted works without authorization are stealing, and Music Canada will continue to push for strengthened policies and frameworks to protect against this,” said Rogers.

The free Global Music Report 2024 – State of the Industry report is now available here.

ENDS

Notes to editors:

About Music Canada 

Music Canada is the trade association representing Canada’s major record labels: Sony Music Entertainment Canada, Universal Music Canada and Warner Music Canada. Like its members, Music Canada is a partner to the industry, working with artists, independent labels, publishers, platforms, associations and others, in advancing forward-looking policies to ensure a dynamic and successful Canadian music ecosystem which returns value to music creators.

For further information: Regan Reid, Music Canada, rreid@musiccanada.com, (416) 462-1485

About IFPI

IFPI is the voice of the recording industry worldwide, representing over 8,000 record company members across the globe. We work to promote the value of recorded music, campaign for the rights of record producers and expand the commercial uses of recorded music around the world.

For further information please contact: press@ifpi.org | +44 (0) 20 7878 7979 

Today, the  IFPI released the Global Music Report 2023, a comprehensive annual review of the global recorded music market. In addition to revenue and listenership data, the report provides insight and analysis on important global trends and issues facing the music industry, including the rapid expansion of global music markets such as Sub-Saharan Africa, as well as the need for responsible policies around artificial intelligence that protect human artistry and creativity. 

In Canada, the music market grew by 8.12% in 2022, to a total of $608.5 million USD, ensuring the country held its place as the 8th largest market in the world. Canada’s growth was driven by a 10.1% increase in streaming, which includes an 8.4% increase in subscription streaming to $380.6 million USD, and 16.1% and 16.9% gains in ad-supported audio streaming and ad-supported video streaming, respectively. Physical format revenue increased by 6.5% in 2022 to a total of $68 million USD, the 7th highest ranking in the world. This growth was driven by vinyl sales, which increased 19.4% and offset declines in CD and music video sales.

“The growth of the Canadian music market is driven by the incredible commercial and creative partnerships between artists and labels. More than ever, labels play an essential role as the leading investors in artists, helping them break through and connect with their fans globally,” said Patrick Rogers, Chief Executive Officer of Music Canada. “While the tools and platforms available to make and consume music continue to evolve, it’s clear that the personal connection between artist, music and fan remains paramount.” 

The growth in the Canadian market is a reflection of wider industry trends. The global recorded music market grew by 9% in 2022, also driven by an increase in paid subscription streaming. Globally, subscription audio revenues were up 10.3% to $12.7 billion USD, while physical format revenues increased 4%, performance rights revenues gained 8.6% and synchronization income grew 22.3%. Total global revenues for 2022 were $26.2 billion USD. Streaming remains the dominant source for growth, comprising 67% of recorded music revenues globally. There were 589 million users of paid subscription accounts at the end of 2022, up from 523 million in 2021.

For the second year in a row, recorded music revenues grew in every region around the world, with Sub-Saharan Africa becoming the fastest growing region in 2022 with 34.7% growth. The report highlights the increasing importance of emerging markets to global recorded music revenues, noting that Latin America saw gains of 25.9%, with every market in the region posting double-digit growth. While fans can now engage with music from almost all countries in the world, the report also notes the increasing trend towards embracing and celebrating local artists and culture.

“Record companies’ investment and innovation has helped make music even more globally interconnected than ever, building out local teams around the world, and working with artists from a growing variety of music scenes. This is driving music’s development whilst enabling fans to seize the expanding opportunities to embrace and celebrate their own local artists and culture,” said Frances Moore, IFPI Chief Executive. 

The continued growth of the global industry allows reinvestment in the next generation of artists, and the report makes clear the continued need for new technologies and platforms to ensure  the value of music is returned to its creators. With respect to AI in particular, the industry is excited by the possibilities it presents, but innovation and use of AI must not come at the expense of human creativity and reward. Referencing the IFPI’s policy principles, the report states, “The artist must remain at the centre of all that we do” – echoing the guiding principles for AI laid out in the recently launched Human Artistry campaign. 

“As the industry continues to evolve and develop new and innovative ways to bring music to global audiences, it’s vital we keep artists and the businesses who invest in them at the heart of our work. As the representative of Canada’s major labels, and partner to the industry, we will continue to advocate for forward-looking policies that support artists’ creative and commercial success,” added Rogers. 

The free Global Music Report 2023 – State of the Industry is now available on the IFPI’s website.