Music’s Growth Hit a High Note in 2023
Global music consumption grew at a double-digit rate during 2023, with streaming hitting record levels.
The global music industry, led by streaming, grew at a double-digit rate during 2023, according to a report from entertainment data and insights company Luminate.[1] Other items of note include Taylor Swift’s dominance of the music industry, the growing appeal of country music both within and outside the US, the growth of non-English language music, and the importance of Superfans.
All the World’s a Music Stage
Total global on-demand audio (ODA) streams reached 4.1 trillion during 2023, a 22% increase over 2022. Including video, total on-demand song streams grew 33.7% to 7.1 trillion.
Growth was strong within the US, with total ODAs reaching 1.1 trillion, a 12.7% increase over 2022. Including video, total music streams increased by 14.6% to reach 1.5 trillion.
People Still Buy Physical Music
Total US album sales grew 5.2% to reach 105.3 million. This included a 9.3% increase in digital albums and an 8.9% increase in physical albums.
It Was Taylor Swift’s Year
Taylor Swift seemed to dominate the headlines during 2023. Rightly so because she also dominated the music charts.
Taylor made up 1.79% of the total US music market during 2023. One of every 78 audio streams was a Taylor Swift song in the US.
Country Music’s Appeal Continues to Grow
Country music’s ODAs grew by 23.7% in the US to reach over 20 billion streams. The growth led by younger music listeners, particularly Gen-Z and Millennials.
However, country music’s appeal is also growing outside the US. It was one of the fastest-growing music genres in countries including Australia, New Zealand, Ireland, the United Kingdom, and Norway.
Hip-Hop Turns 50
Hip-hop turned 50 in 2023. In those 50 years, it has led the US music industry with a 25.5% share of music consumption.
Non-English Music Growing within the US
Americans listened to more non-English music during 2023. Latin ODAs in the US increased by 24.1%, led by artists like Bad Bunny, Peso Pluma, and Eslabon Armado.
Additionally, regional Mexican ODAs saw a 60% increase during 2023. Its growth follows demographic trends, seeing the strongest results in regions with a large Mexican population, such as the West Coast and Southwestern states like Texas.
The Importance of Superfans
Superfans are listeners who engage with music in multiple ways. They are often a focus of music companies, and for good reason. During 2023, superfans:
- Spent 68% more money each month on music than the average US listener
- Spent 126% more on artist merchandise
- Spent 76% more money on physical music
Music Is a Global Phenomenon
The Luminate report highlights the global reach of music and its worldwide growth. It also illustrates that music may be an attractive investment opportunity.
How May Individuals Gain Exposure to Companies in the Global Music Industry?
The MUSQ Global Music Industry ETF (MUSQ)
The MUSQ Global Music Industry ETF (MUSQ) seeks to provide investment results that, before fees and expenses, correspond to the total return performance of the MUSQ Global Music Industry Index (MUSQIX). The MUSQIX Index is designed to provide exposure to global, publicly traded companies and royalty funds with a core business interest in the global music industry.
MUSQ may provide individuals with an attractive vehicle to gain exposure to the global music industry.
[1] All data sourced from: Luminate Year-End Music Report, Luminate, January 2024
MUSQ Global Music Industry Index ETF is offered by prospectus. Carefully consider the investment objectives, risks, charges, and expenses. This and other important information can be found in the MUSQ ETF prospectus, which should be read carefully before investing and can be obtained by visiting https://musqetf.com or by calling 1-855- MUSQ-ETF(687-7383).
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