The U.S. Music Industry Recorded Strong Growth in 2023

July 01, 2024 EDT

The U.S. recorded music industry registered strong growth in 2023, according to the Recording Industry Association of America (RIAA).[1]  Streaming led the way. The MUSQ Global Music Industry ETF (MUSQ) may be an attractive vehicle to gain exposure to the music industry.

Record 2023 Revenues

U.S. recorded music revenues grew 7.5% at the retail level to $17.1 billion from $15.9 billion in 2022. At the wholesale level, revenues grew 6.7% to $11.0 billion from $10.3 billion. This was the eighth consecutive year of revenue growth.

Streaming Leads the Way

U.S. streaming revenues grew 8.3% to $14.4 billion from $13.3 billion. Streaming remains the dominant way U.S. listeners consume music, accounting for 84% of total music revenue. This was the fourth straight year that streaming accounted for 83%-84% of total music revenues.

Revenues from paid subscriptions grew 9% to $11.2 billion, representing 78% of streaming revenues and nearly two-thirds of total 2023 revenues. The number of paid subscribers grew 5.7% to 96.8 million, an all-time high.

Revenues from physical music formats accounted for 11% of revenues, while digital downloads and synchronizations[2] were 3% and 2%, respectively.

Physical Music Revenue Grew

Revenue from physical music mediums grew 10.4% to $1.91 billion from $1.71 billion. Revenues from vinyl records grew 10% to $1.46 billion, the seventh consecutive year of growth. Vinyl accounted for 71% of physical format revenues. Music fans bought 43 million vinyl records, 6 million more than the number of CDs.

Despite being outsold by vinyl, CD sales grew 11% to $537 million. This was only the second time since 1987 that the number of vinyl records was higher than the number of CDs sold.

Mirroring Global Trends

The RIAA report echoes the theme from the International Federation of the Phonographic Industry’s (IFPI) report, which indicated that global recorded music revenues grew 10.2% to $28.6 billion in 2023.[3]

Both the RIAA and IFPI reports point to an industry that grew at a healthy pace in 2023. 

Companies in the global music industry may be poised to benefit from this growth.

 

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 companies in the live music industry.

 


[1] Unless otherwise noted, all data sourced from: Year-End RIAA Revenue Statistics, RIAA, March 2024; Note that all comparisons are full-year 2023 versus full-year 2022.
[2] Synchronization refers to revenue from the use of music in media output such as films, television shows, video games, etc.
[3] Global Music Report: 2024, IFPI, March 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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