In a tumultuous year that saw the music industry hit the high notes of success, Taylor Swift emerged as a powerhouse, outshining even the biggest corporations with her staggering $1.82 billion earnings in 2023, as reported by Billboard.com.
Swift’s record-setting achievements, including accolades like earning the title of TIME Person of the Year and sweeping Album and Song of the Year at the 66th GRAMMYs, were largely fueled by her Eras Tour, which raked in over $1 billion from ticket sales and merchandise.
A Resonant Industry
Beyond Swift’s stratospheric success, the music industry as a whole experienced a renaissance, with global recorded music revenue surging to $28.6 billion, marking a robust 10.2% year-over-year increase, according to the annual IFPI report.
An alternative report by MIDiA Research painted an even more impressive picture, pegging the global revenue at $35.1 billion. MIDiA’s nuanced analysis, which accounts for expanded rights revenue and independent artists’ earnings from self-publishing on digital platforms, resonated with many industry observers.
Streaming’s Sovereignty
Streaming emerged as a key driver of growth, as highlighted by IFPI’s Chief Financial Officer and Interim Joint Head, John Nolan, who emphasized the pivotal role of paid streaming subscribers and price upticks in propelling revenue growth for the third consecutive year.
The IFPI report underscored the dominance of streaming, with global subscription streaming revenues totaling $14 billion, registering an 11.2% year-over-year surge and constituting nearly half of the overall market.
Consumers worldwide, particularly in the U.S., shifted towards smartphone-led media consumption, preferring streaming services over physical media or digital purchases. Notably, streaming platforms like Spotify, Apple, and Amazon reaped the rewards of this trend, with Spotify adding 31 million premium users and raising subscription prices by 10%.
Streaming giants like Apple (AAPL) and Amazon (AMZN) followed suit, capitalizing on the burgeoning demand for digital music consumption.
As the melodies of success continue to play in the music industry, investment opportunities may beckon. For those looking to tap into this booming sector with ease, thematic ETFs offer an attractive option, allowing investors to leverage the expertise of seasoned professionals.
The MUSQ Global Music Industry ETF provides concentrated exposure to the complete music ecosystem, spanning streaming, content distribution, live music events, satellite and broadcast radio, equipment and technology, and artificial intelligence. With a well-diversified portfolio encompassing key players like Spotify, Apple, Sonos, Universal, and Sony, this ETF presents a comprehensive gateway to the burgeoning music industry landscape.
Featured photo by Chaz McGregor on Unsplash.