Introduction to the IFPI Global Music Report 2025

The International Federation of the Phonographic Industry (IFPI) has released its highly anticipated Global Music Report for 2025, highlighting the tenth consecutive year of growth in the global recorded music industry. Despite a slower growth rate compared to previous years, the report reveals a resilient market driven by paid streaming and innovation. Here are 11 important takeaways from the report, focusing on trends, growth, and challenges facing the industry.

1. Global Revenue Growth

• Total Revenue: The global recorded music industry reached a total trade revenue of $29.6 billion in 2024, marking a 4.8% increase from the previous year[1][2].
• Growth Trend: This growth rate is the lowest since 2015, reflecting a more challenging market environment compared to the double-digit increases seen in earlier years[1].

2. Streaming Continues to Drive Growth

• Streaming Revenue: Total streaming revenue, including both subscription and ad-funded platforms, grew by 7.3% to $20.4 billion[1].
• Subscription Growth: Subscription streaming saw a significant increase of 9.5%, though this was slightly lower than the 11.2% growth in 2023[1][2].
• User Base Expansion: The number of subscription streaming users rose by 10.6% to 752 million globally[2].

3. Regional Performance

• Latin America: This region experienced the highest growth rate at 22.5%, outpacing global averages for the 15th consecutive year[1].
• Middle East & North Africa (MENA): MENA was the fastest-growing region globally with a 22.8% increase[2].
• USA & Canada: The combined market grew by 2.1%, with the U.S. seeing a 2.2% increase and Canada at 1.5%[2].
• Europe: Europe's revenue grew by 8.3%, driven by strong performances in the UK, Germany, and France[2].
• Asia: Asia saw a modest growth of 1.3%, impacted by a decline in physical sales[2].

4. Impact of Physical and Digital Sales

• Physical Sales Decline: Physical sales continued to decline, with Asia being the largest physical market but experiencing a 4.9% drop[2].
• Digital Downloads: Digital downloads also saw a decline, offset by growth in other segments like streaming[1].

5. Role of AI in Music

• AI Opportunities and Challenges: While AI presents opportunities for enhancing creativity and fan experiences, it also poses significant threats to human artistry if used without proper authorization[2].
• Industry Stance: The IFPI emphasizes the need for policymakers to protect music rights and ensure AI supports rather than replaces human creativity[2].

6. Performance Rights and Sync

• Growth Offset: Growth in performance rights and sync was offset by declines in physical and download sales, resulting in no net contribution to overall revenue growth[1].

7. Investment in Artists and Innovation

• Record Labels' Role: Record companies continue to invest in artists and innovative music experiences, driving industry growth[2].
• Long-term Strategy: This long-term investment strategy allows labels to be patient and consistent in their support for artists and emerging technologies[1].

8. Market Competition

• Competitive Landscape: The music industry operates within a highly competitive market, with companies focusing on engaging fan experiences and high-value superfans[1].

9. Emerging Technologies

• Potential for Growth: Emerging technologies, including AI and streaming innovations, offer significant potential for further industry growth[2].

10. Global Artist Recognition

• Taylor Swift: Taylor Swift was named the Global Recording Artist of the Year by the IFPI, highlighting her global impact on music[1].
• Benson Boone: Benson Boone achieved the biggest global hit with "Beautiful Things"[1].

11. Future Outlook

• Growth Potential: Despite slower growth, the industry remains optimistic about future potential, driven by innovation and investment in artists[2].
• Challenges Ahead: The industry faces challenges such as AI misuse and market competition, requiring strategic responses from stakeholders[2].

Conclusion

The IFPI's Global Music Report 2025 provides a comprehensive overview of the music industry's current state and future prospects. As streaming continues to dominate, the industry must navigate challenges like AI's impact and market competition while leveraging emerging technologies for growth.