Strong Growth Predicted to Lie Ahead for the Global Music Industry
Global music industry revenues are expected to reach $100 billion by 2031, almost doubling from 2023’s $58 billion, according to entertainment research company MiDiA Research.[1] What may drive this expected growth?
Streaming Expected to Dominate Growth
Streaming is expected to generate most of the revenue growth through 2031, accounting for 75% of the expected gains. Global audio streams are projected to double by 2031.
The Global South, or developing countries, is expected to drive a major portion of the growth, especially in terms of the number of users. However, western, more developed countries are projected to dominate global revenues, mainly due to their higher average revenue per user (ARPU).
China is expected to become the second-largest music market, behind the United States, by 2031.
Subscription Revenue Growth Predicted
Global music subscribers reached 737.9 million in 2023, adding more subscribers in 2023 than in 2022. Subscribers are expected to exceed 1 billion by 2027 and continue to grow, driven primarily by growth in Global South markets.
The U.S. is projected to remain the top subscription market in terms of revenue due to its higher ARPU, but China is expected to move into second place due to growth in the number of subscribers in that country.
Pricing Power Expected to Increase
ARPU is expected to rise through 2029, driven by price increases, growth in super premium subscription plans, and improved retention. Four waves of price increases are expected between 2024 and 2031.
Expected Growth Follows a Strong 2023
The global music market grew strongly in 2023, increasing 8% to reach $58.1 billion.
A Positive Future Expected
The MiDiA report paints a promising picture of the global music industry’s future. Growth in streaming and the rise of emerging markets is expected the market to nearly double by 2031. This may present an attractive investment opportunity for companies involved in 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: MiDiA Research 2024-2031 Global Music Forecasts, MiDiA, May 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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