2023: An Exciting Year for the Music Industry
2023 was an exciting year for music. Explore how streaming and recorded music, live shows, AI technology, and catalog sales all left their mark and highlighted the potential appeal of investing in the global music industry.
2023 was an exciting year for the global music industry. Streaming and recorded music hit record volumes, and live music came roaring back. New technologies, such as artificial intelligence (AI), began to make their mark on the music industry, and catalog sales continued to be strong. The events of 2023 highlight the potential appeal of investing in the global music industry.
Two Queens Rule Live Music
After the pandemic-induced slowdown of the past several years, music lovers were eager to attend live performances. 2023 saw a strong line-up of live music events, generating billions of dollars in revenue.
The Taylor Swift and Beyonce tours are estimated to have added $5.4 billion to the U.S. economy. Combined with the Barbie and Oppenheimer movies, U.S. GDP was boosted by an estimated 0.5%.[1]
The top 5 tours and their gross revenue were as follows:[2]
| Taylor Swift | $780MM |
| Beyonce | $460MM |
| Pink | $300MM |
| Coldplay | $275MM |
| Ed Sheeran | $240MM |
Streaming Hot
Streaming continued to dominate music consumption and set new records during the year. More than 1 trillion streams were accumulated by the end of March 2023, the fastest face ever to reach that number in a calendar year.[3]
Recorded Music, Led by Streaming, Hits a Record
U.S. recorded music revenues at the retail level reached an all-time high of $8.4 billion in the first half of 2023, a 9.3% increase over the first of 2022. Streaming accounted for 84% of recorded music revenue. Streaming revenues grew 10% over the first half of 2023 to reach $7 billion.[4]
Revenue from physical music formats also reached a record, hitting $882 million, a 5% increase over 2022. [3]
Hip Hop Turned 50
On August 11, 2023, Hip Hop turned 50. Over that time, it has influenced music and culture. It is the largest genre of U.S. recorded music consumption, outselling rock. It has transformed how the music industry does business, musicians earn income, producers construct songs, and labels market and sell albums. [5]
AI Continued to Make Inroads
The global music industry is embracing AI. It is used on streaming platforms to create user-specific playlists, compose music, and create stems that can be used to develop other music, or licensed for television, film, commercials, and video games.
AI was used to separate a John Lennon vocal from an older recorded tract to create a new “last” Beatles song.
Catalog Sales
Sales of music catalogs continue to generate hundreds of millions of dollars for artists. In 2023, Katy Perry sold her entire catalog for $225 million, outearning Justin Bieber’s $200 million take.[6]
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] Wilkins, Joseph, Taylor Swift, Beyonce, and Barbenheimer May Boost US GDP by $8.5 Billion, Business Insider, 8/25/23
[2] Dellatto, Marisa, The Top-Earning Summer Concert Tours of 2023, Forbes, 10/15/23
[3] Luminate Midyear Music Report, Luminate, 7/12/23
[4] RIAA Mid-Year 2023 Revenue Report, RIAA, September 2023
[5] Shah, Neil, 50 Years Later, Everything is Hip Hop, The Wall Street Journal, 8/10/23
[6] Davis, Darreconna, Katy Perry Sells Music Rights For A Reported $225 Million – Trumping Bieber’s $200 Million Sale Earlier This Year, Forbes 9/18/23
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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