In 2024, the music streaming sector experienced a notable shift as its growth momentum began to wane. According to MIDiA Research, for the first time, the percentage of total recorded music revenue attributed to streaming did not rise compared to the previous year. Although still commanding a significant portion of the market, streaming’s share dipped slightly from 62.4% in 2023 to 61.3% in 2024. Additionally, the annual growth rate of streaming revenue slowed down considerably, rising by only 6.2%, compared to double-digit increases observed in earlier years.

Despite this slowdown, major platforms like Spotify continued to lead the charge with substantial contributions to global revenue. Last year, these services generated $22.2 billion, representing the majority of the $36.2 billion total global revenue. However, even this figure reflects a deceleration, with an overall increase of just 6.5%, down from nearly 10% in 2023. The industry is now exploring new strategies, such as premium pricing tiers, to reinvigorate growth. For instance, discussions between Universal Music Group and various streaming platforms about introducing super-premium subscription options highlight efforts to tap into niche markets and drive further expansion.

Beyond streaming, other segments within the music industry have begun gaining traction. Revenue from expanded rights, which include merchandise, licensing, and touring, reached $4.1 billion in 2024, marking a steady increase from prior years. This segment accounted for 11.3% of total revenue, reflecting its growing importance. Meanwhile, independent artists and non-major labels also saw positive developments, with non-majors increasing their market share to 29.7%. Independent artists utilizing DIY distributors achieved a 4.7% growth rate, showcasing the expanding influence of self-managed talent in the digital age.

As the music industry adapts to evolving consumer behaviors and market conditions, embracing innovation and diversification becomes essential. The introduction of enhanced subscription models and the rising prominence of independent creators signal a dynamic shift towards more inclusive and flexible business practices. By fostering creativity and collaboration across all levels of the industry, stakeholders can ensure sustainable growth while meeting the ever-changing demands of listeners worldwide.