Music’s Melodious First Half 2024 Growth
The music industry experienced strong growth during the first half of 2024, according to a report from entertainment data and insights company Luminate.[1] Streaming grew double-digits compared to the first half of 2023 and created opportunities for non-English and independent artists to reach a moderate level of success.
Streaming Continued Its Pace of Strong Growth
In the first half of 2024, global on-demand music streams hit 2.3 trillion, a 15.1% increase over the 1.99 trillion from the first half of 2023. Streams surpassed 1 trillion at its fastest pace in 2024, more than ten days earlier than in 2023.
In the U.S., on-demand music streams grew 8% to 665.8 billion compared to 616.5 billion in 2023’s first half.
Streaming’s Growth Gives More a Chance
The growth of streaming has helped to diversify the music industry and has created opportunities for more artists to have their music heard.
The fastest-growing music genre in the U.S. was Latin music, which experienced a 15% increase in on-demand audio streams and gained more than a half percentage point increase in market shares.
Additionally, more independent artists (not associated with major recording studios) are reaching mid-tier streaming categories. Among artists registering 1 million – 10 million, more than 62% are independent artists.
Also, independent artists gained market share in all levels of streaming, with the largest gain in market share, a full 2.7 percentage points, in the 500 million+ segment.
Live Music’s Impact
Live music accounted for 64% of monthly music spending in the U.S. and led to a 42% increase in local on-demand audio streams during the week of an event.
Additionally, live music and have a symbiotic relationship. During Metallica’s 6/12 takeover of gaming platform Fortnite, streaming grew not just for the six songs used in the game, but for the band’s entire music catalog.
Let’s Not Forget the Album
Physical album sales increased 3.8% over 2023’s first half, climbing to 24.7 million from 23.7 million. Additionally, album variants (multiple releases of the same album often with bonus tracts or unique designs), have been increasing since 2020.
Music: Is There An Investment Opportunity?
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 Midyear Music Report, Luminate, July 2024. All comparisons are 1H 2024 versus 1H 2023.
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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There is no guarantee the Fund will achieve its stated objectives.
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