Music subscriber market shares 2024: Slowdown? What slowdown?Record label streaming revenue growth slowed to 6% in 2024 but there was no such slowdown in subscriber growth. In our just published ‘Music subscriber market shares Q4 2024’ report, we reveal that the 85 million net* new subscribers added in 2024 was only two million less than in 2023, resulting in 818 million subscribers and growth of 12% i.e., around double label revenue growth. 

So, just what is going on? How could subscriber and revenue growth become so de-coupled? Normally, the answer for music industry questions like this is ‘it’s complicated’ –but this time it is not. It can be boiled down to two key things: Global South and incentivised growth.

On to those in a bit, but first market shares:

Spotify continues to set the pace: Spotify’s market share (32%) is around where it was in 2015 and has remained relatively stable in all the intervening quarters. That might sound like stasis, but it is anything but. Between 2015 and 2024, the global base of music subscribers grew by more than 850%. So, to maintain market share, Spotify has had to grow at a similar rate. During 2024, Spotify added 28 million subscribers in 2024, that is more than the combined total number of subscribers added by the 2nd, 3rd, and 4th largest DSPs (Tencent, Apple, and Amazon). The simple arithmetic is that when you command a strong market lead, you have to add a lot more subscribers than the rest to maintain your market share. It is easy to take Spotify’s success for granted. Don’t! This is what a highly effective company that retains an obsessive appetite for growth looks like

Tencent Music Entertainment: Even though it operates in China, Tencent  is the 2nd largest DSP globally, with 120 million subscribers. What is more, it grew so strongly that it slightly increased global market share in 2024. Though its key competitor NetEase Cloud Music grew even faster and so gained China market share at Tencent’s expense

Apple Music and Amazon Music: Apple and Amazon held onto 3rd and 4th spots respectively, but both had underwhelming 2024s, adding just six million subscribers between them

YouTube making up ground, fast: In percentage terms, YouTube was the fastest growing global DSP in 2024, growing market share and only missing out on knocking Apple off 4th spot by a margin in the low hundreds of thousands. Spotify and YouTube are the ones setting the global pace and though YouTube is far behind Spotify globally, it is the top DSP in a number of key Global South markets, including India

Now, on to why subscriber growth is so much faster than revenue growth:

1 – The Global South

The Global South (by which we mean regions that are not North America and Europe) is now the music industry’s growth engine. Last year we entitled our music forecasts report ‘Rise of the Global South’ and our view was borne out in 2024, with these regions accounting for 78% of all subscribers added in 2024. Let that settle in for a moment: four fifths of all subscriber growth came from outside of Europe and North America. Of course, those two regions still account for the majority of revenues, but as subscriber growth slows in those markets, it is lifting off elsewhere. This is nothing less than a rebalancing of the global music industry.

Which creates a major uncoupling of growth metrics for Western rights holders. Global South markets have lower ARPU and Western repertoire share is low there. So, Western rights holders see a double discount on subscriber value compared to Western markets.

2 – Incentivised growth

In the first phase of streaming growth, ad supported users acted as the key means of converting subscribers. In mature Western markets, most people on free tiers are there because they like free stuff rather than being prospective subscribers. This is why free trials have become the key tool for driving conversion. In saturated Western markets, it seems that these trials are being used liberally to try to squeeze out the last pockets of subscriber growth. In turn, denting ARPU. 

Consider the case of the US: According to the RIAA’s figures, subscription revenue grew by 5.3% and ARPU growth was 1.9%. Meanwhile US inflation was 2.9% but the streaming price ‘inflation’ rate was 9.1%. So, a $1 price increase resulted in ARPU decreasing by one percentage point in real terms (ie inflation adjusted).

Foundations for more growth

2024 was a great year for global subscriber growth and was a particularly good year for Spotify, YouTube, Tencent, and NetEase. The divergence between revenues and users is clearly cause for concern, but it is better for the long term to be growing subscribers as once you have them monetised you can start focusing on growing monetisation. Hello supremium.

*All growth figures refer to net additions i.e., the difference between the total number of subscribers one year to another. They do not account for churn. The total (gross) number of subscribers added is significantly higher. The net figure thus refers to the total after churned out subscribers have been removed from the totals.

Bedroom Pop, Music Creation and ‘More Likes, Fewer Gigs’Is the traditional music career model dead? Learn about Bedroom Pop and how a new generation of artists are building fanbases without leaving their bedrooms.
The post Bedroom Pop, Music Creation and ‘More Likes, Fewer Gigs’ appeared first on Hypebot.

Fast Company names 10 Most Innovative Music Companies 2025Fast Company has released its annual list of the 10 most innovative music companies for 2025. Not one of the major streamers or record labels made the list.
The post Fast Company names 10 Most Innovative Music Companies 2025 appeared first on Hypebot.

Recorded music market 2024: $36.2 billion, up 6.5%MIDiA has just released its annual recorded music market shares report. Clients can access the full report and the accompanying massive (!) data set here. For the rest of you, here are some highlights from the report.

Global recorded music growth has oscillated through the 2020s and 2024 continued that pattern, up 6.5% to $36.2 billion after 9.4% growth in 2023. (Excluding expanded rights, the total was $32.1 billion). Given that the first half of the 2020s was characterised by global upheaval and uncertainty, shaped by factors such as the pandemic and rising inflation and interest rates, 6,5% growth was no small achievement. But global disruption is not going away – 2025 has thus far picked up the baton and sprinted with it. The music business is going to have to get used to operating in challenging global circumstances, even before considering a growing catalogue of disruptive industry specific trends such as, bifurcation, the rise of the Global South and a fast-maturing streaming market.

Streaming still dominates revenues but its impact is lessening. For the first time ever, its share of total revenues declined slightly in 2024, down from 61.5% to 61.3%, with streaming growing slightly slower than the total market to reach $22.2 billion. Streaming is no longer the market maker. Its contribution to total market growth was down by more than a fifth compared to 2022. The streaming revenue slowdown has been on the horizon for many years and – despite price increases – it has now arrived. Super premium cannot come soon enough.

On top of this, physical was down -4.8%, carrying on its very own 2020s yo-yo growth pattern (up, down, up, down). So where did all the growth come from? Other i.e. performance, sync and expanded rights. Expanded rights (merch etc) were up to $4.1 billion, reflecting the recorded music businesses success in monetising fandom. Other as a whole was up 17.3% while Sony Music pulled up a forest of trees, seeing its ‘other’ revenue up by 38.6% in 2024.

In fact, Sony Music had a good year all round. UMG remained comfortably the world’s largest label with revenues of $10.5 billion but for the second successive year, Sony Music Group (SMG) was the fastest growing major label, increasing revenues by 10.2% to grow market share 700 basis points to 21.7%. SMG was the fastest growing major label in the first half of the decade, growing by a total of 73.9% between 2020 and 2024. The only other market constituent to grow share was non-major labels, up to 29.6% market share. Artists Direct meanwhile (self-releasing artists) felt the pinch of new royalty structures, with revenues slower than the market to reach $2.0 billion. This despite the fact that the number of self-releasing artists grew by 17.2% to reach 8.2 million, with Chinese streaming services Tencent and NetEase seeing particularly strong growth.

One of the most important market trends though, is the growing gap between DSPs and labels and distributors. Streaming services are both growing revenue faster than rightsholders and are widening the growth gap. DSPs grew revenue three times faster than labels in 2024 and the rate of growth was up three years running. Despite working within tightly set rightsholder constraints, DSPs are learning how to improve margin through a diverse mix of tactics including content mix (e.g., podcasts, audiobooks), acquiring cheaper music (e.g., production libraries, exclusive commissions, generative AI), licensing discounts (e.g., audiobook bundles) and charging labels for access to audiences (e.g., Spotify Discovery Mode). 

All in all, a solid year for the recorded music market, but with warning signs: labels aren’t keeping pace with DSP growth and despite keeping the long tail of Artists Direct quiet with new licensing structures, more artists than ever are deciding to release without labels. Eventually they (and smaller indie labels) will take heed of the ‘you’re not welcome here’ sign on streaming’s door and build their audiences elsewhere. This will be a short-term win for bigger labels, but long-term risk, with this new lane being where much of tomorrow’s culture will be made. In case you forgot, Bifurcation is coming.

Note: we scaled down some of our historical numbers slightly to reflect some double counting of independent label revenue distributed by other independent labels

Songs in Film and TV: Which songs are used most?The relationship between film and and TV and music has always been strong, but these songs have been used so often that their identity is shaped by on-screen appearances.
The post Songs in Film and TV: Which songs are used most? appeared first on Hypebot.

Unofficial Guide to Music Tech events during SXSW: Top PicksThe free Unofficial Guide to Music Tech events during SXSW in Austin next week is live and we share out top picks.
The post Unofficial Guide to Music Tech events during SXSW: Top Picks appeared first on Hypebot.

Indie Artist Playbook: Tips for a Sustainable Music CareerWant to make a living from your music while staying independent? The Indie Artist Playbook shares 25 years of insider knowledge, giving you the tools to build a sustainable career, market your music, and thrive in today’s music industry.
The post Indie Artist Playbook: Tips for a Sustainable Music Career appeared first on Hypebot.

Warner Bros. Discovery strikes JV with Cutting Edge to co-own vast catalog of film and TV music, in deal worth $1bn+Companies create a JV to co-own catalog of more than 400,000 compositions and song cues
Source

Jin of BTS is the latest artist to launch an interactive hub on TikTok to promote new solo album, ‘Happy’TikTok has partnered with K-Pop superstar Jin on a new multimedia campaign in support of his first solo album, Happy,
Source

Meddling offers free A&R listing service to ‘democratize A&R’For more than 10 years Meddling has provided data tools for A&R professionals. Now the company is launching a free A&R listing service for artist signings and label departures.
The post Meddling offers free A&R listing service to ‘democratize A&R’ appeared first on Hypebot.

Understanding Music Publishing Rights: A Comprehensive GuideUnlock how to maximize earnings as an artist or songwriter with this guide to understanding music publishing rights. It breaks down everything you need to know to protect your work and profit from your creations.
The post Understanding Music Publishing Rights: A Comprehensive Guide appeared first on Hypebot.

Musician’s Guide to LiveStreamingIn this Musician's Guide to LiveStreaming discover how to livestream with proven strategies used by successful musicians. Learn how to grow a fanbase, maximize revenue, increase visibility, and take full control of your virtual success.
The post Musician’s Guide to LiveStreaming appeared first on Hypebot.

Laufey: Gen-Z's Gateway to the Realm of JazzYoung artists including Icelandic-Chinese singer songwriter Laufey, English pop group Wasia Project, London-based singer/songwriter Ella Hohnen-Ford, and American Jazz singer Samara Joy, utilize their own personal fusions of contemporary jazz and pop to bridge the genre divide. We explore these musicians who are helping to introduce jazz-adjacent sounds to new audiences.

Apple Album Booklets: 50K added to Classical but not Apple Music50,000 Apple Album Booklets have been added to Apple's classical music app "to enhance your listening experience," but no booklets are available on the main Apple Music service.
The post Apple Album Booklets: 50K added to Classical but not Apple Music appeared first on Hypebot.

Kesha goes independent, launches label with ADA and CrushKesha has launched her own independent label. It will be distributed by WMG's with Crush Music overseeing marketing and promotion.
The post Kesha goes independent, launches label with ADA and Crush appeared first on Hypebot.