Music Trends to Watch in 2024
Explore the must-know music trends for 2024, from the surge in streaming and non-English music to the pivotal roles of superfans, women artists, and live events, as forecasted by Luminate.
What are some music industry trends to watch in 2024? Music and entertainment industry consultant Luminate highlighted some key trends from 2023 that they believe are likely to continue into 2024, including streaming, the rise of non-English music, Superfan spending, and the gaining power of women in the music industry.[1]
Life is But a Stream
Streaming was hot in 2023, with global on-demand audio song streams reaching a record 4.1 trillion, up 22.3% from 2022’s levels. In the U.S., streams reached 1.2 trillion, up 12.7% from 2022.
World music, Latin, and Country were the fastest-growing genres for streaming.
Long Live Rock, and Pop, and Hip-Hop
Streaming may offer music a longer shelf life. For more established music genres, like rock, pop, and hip-hop, older music makes up more than half of songs streamed.
Pardon My Non-English
Another key trend expected to continue in 2024 is the rise of non-English music. In 2023, the share of English language music in the Top 10K Global tracks declined to 54.9% from 62.1% in 2022 and 67% in 2021. Within the U.S., Spanish was the second-largest music language with an 8.1% share, almost doubling from 2021.
The music industry needs to pay attention to multi-language music fans as the way that they discover music is different. For example, they are 34% more likely to discover music from a movie soundtrack than the average U.S. listener, 36% more likely via exclusive TV shows, and 50% more likely via video games.
The Superpower of Superfans
Superfans are listeners who engage with music in multiple ways. They are often a focus of music companies for good reason. On average, superfans spend 68% more on music than the average U.S. listener, 126% more on artist merchandise, and 88% more on physical music.
I Am Woman, Hear Me Roar
Women artists gained a greater portion of the music industry in 2023. Women’s share of the Top 500 U.S. artists increased by over 4.2 percentage points compared to 2022 and well over 25% of the total.
Taylor Swift had a monumental year, generating $1 billion+ from her Eras tour. That figure is likely to swell to over 2 billion by the end of its run. She represented 1.79% of the total U.S. music market in 2023 and her songs were 1 out of every 78 streams.
The Circle of Live
Live music made up 62% of monthly music spend in 2023. It yielded 42% growth in local on-demand streaming during the week of an event. Also, the level of streaming was a good predictor of ticket sales.
Exciting Things for 2024
These trends may make 2024 an exciting year for the global music industry.
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: Top Entertainment Trends for 2024: What the Data Says, Luminate, 3/19/24
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).
Risk Disclosures
There is no guarantee the Fund will achieve its stated objectives.
In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles or social, economic or political instability in other nations.
Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.
In addition to the normal risks associated with investing, investments in small- or mid-capitalization companies typically exhibit higher volatility.
The Fund’s concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors.
The Fund is non-diversified.
The Fund is new and has a limited operating history for investors to evaluate. A new and smaller fund may not attract sufficient assets to achieve investment and trading efficiencies.
The Fund may invest in securities denominated in foreign currencies. Because the Fund's NAV is determined in U.S. dollars, the Fund's NAV could decline if currencies of the underlying securities depreciate against the U.S. dollar or if there are delays or limits on repatriation of such currencies. Currency exchange rates can be very volatile and can change quickly and unpredictably.
All investing involves risk, and asset allocation and diversification do not guarantee a profit or protection against a loss. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, might be worth more or less than their original cost. ETFs are subject to risks similar to those of stocks, as well as other risks specific to the particular ETF.
ETF shares are traded on exchanges, and are traded and priced throughout the trading day. ETFs permit an investor to purchase a selling interest in a portfolio of stocks throughout the trading day. Because ETFs trade on an exchange, ETF shares are bought and sold at market price (not NAV). The prices of ETFs may sometimes vary significantly from the NAVs of a ETFs’ underlying securities. Brokerage commissions will reduce returns.
Exchange Traded Concepts, LLC serves as the investment advisor. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.