One Trillion Streams, and Other Recent Music Industry Trends
The global music industry's triumphant trillion streams break records, uniting innovation and cultural harmony into a resounding symphony of success.
Over one trillion global on-demand audio streams were accumulated by the end of March 2023, the fastest pace to reach that number in a calendar year, according to a mid-year report by entertainment data and insights company Luminate.[1] The report also highlighted three major trends in the global music industry, including the effects of Super Fans, non-English language recordings, and the impact of new tracks.
Music Is Teeming with Streaming
In our Investment Case, we highlighted that streaming is the dominant medium through which individuals consume music. In the first half of 2023, an average of 112,000 new tracks was pushed live each day, an increase over the 93,400 average for all of 2022.
And the Growth is Global
Markets outside of the US are showing strong growth in streaming, with Asia, Latin America, and Southern Africa seeing increases in the number of streams of 107%, 83%, and 70%, respectively.
Super Fans and Direct-to-Consumer Sales
Direct-to-consumer (D2C) sales increased 20% in the first half of 2023 compared with the comparable period in 2022. Sales of physical mediums like vinyl and CDs in 2023’s first half are up 26% and 15%, respectively, versus last year.
Fanning the Flames
A lot of this growth is being driven by Super Fans, or music listeners who engage with an artist and their content in multiple ways. Super Fans comprise about 15% of music listeners but, on average, spend 80% more than the average listener on monthly music activities. They are also more likely to buy physical mediums of music.
Non-US Language Music
Non-English music has grown in popularity, both in the US and globally. Within the US, 40% of listeners listen to music in another language, and 69% listen to music from artists outside of the US.
Country Music Going Global
Country music is also garnering fans globally, with markets in Asia, Europe, and South America becoming Top 10 markets for country music.
Strong Growth in New Content
More new content is hitting the global music scene in 2023. Total on-demand music streams, both audio and video, increased nearly 31% in the first half of 2023 vs. 2022, with audio registering a 23% increase.
What Does This Mean?
These trends and statistics highlight the strong growth that the global music industry has experienced.
How May Individuals Gain Focused Exposure to 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, 7/12/23
MUSQ Global Music Industry 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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