Why the Music Industry Keeps Rocking, Even in Tough Times
The music industry, like a chart-topping hit—strives to persevere, evolve, and always be in demand.
No matter what the economy throws its way, music keeps playing, and people keep listening. From vinyl records to streaming on smartphones, the global music industry has rocked through every economic era. Notably, a study by IFPI (International Federation of the Phonographic Industry) shows that the global recorded music industry generated well over $30 billion in 2024 [1], showing resilience and growth amid the economic shifts of an election year.
Think back to 2008, when the world was in a financial meltdown. While other industries faced devastating losses, the music industry, when faced with declining sales, switched tactics, which led to the rise in digital music consumption, particularly with streaming services. This shift toward digital formats helped offset some of the losses from declining physical sales during that challenging economic period and brought about the advent of how we now consume music.
In 2020, the COVID-19 pandemic shut down live events, but the music industry hit the virtual stage instead. Artists and organizations quickly adapted, turning to livestreams and interactive online concerts. Platforms like Beyond Live even brought augmented reality into the mix, demonstrating that the show must go on—just in a whole new way!
Fast forward to today
Goldman Sachs predicts that streaming revenues will continue to climb, pushing global music industry revenue beyond $163.7 billion by 2030 [2], a testament to the industry's ongoing evolution. In other words, music keeps rocking and so does the way people listen!
Source: MIDiA’s Recorded Music Market Share Report, 3/13/2025
So, why does music remain strong even when wallets tighten?
Simple: it’s both a necessity and a luxury. Whether people are celebrating or coping with hard times, they may turn to music. A song can be an escape, a source of comfort, or the perfect background for any mood. Plus, technology has made it easier than ever to access music affordably, potentially keeping demand high even during economic turbulence.
The music industry also has a diverse setlist of revenue streams. Streaming platforms, music licensing, synchronization deals, live concerts, music equipment and even vinyl sales contribute to its financial harmony. And with the rise of subscription-based models, there’s a steady flow of revenue, potentially positioning the industry as relatively stable amid uncertain economic conditions. Even now, as markets home and away face inflation, supply chain struggles, and financial volatility, the music industry has continued to be resilient and perform at a steady tempo.
Tune into MUSQ
For investors looking to ride the wave of this ever-evolving industry, the MUSQ Global Music Industry Index ETF (NYSE: MUSQ) is one way to get in tune. MUSQ aims to capture the full spectrum of the music business, including streaming giants like Spotify, major music rights holders like Universal Music Group, and live entertainment like Live Nation.* By considering an investment in MUSQ, you seek exposure to an industry that has consistently adapted, regardless of economic conditions.
What may make MUSQ even more appealing is the industry’s projected future growth. Goldman Sachs estimates that paid streaming subscriptions will surpass 1.2 billion globally by 2030.[2] That’s a massive audience, and the companies in MUSQ are potentially poised for this.
Bottom line?
The music industry, like a classic song, finds new ways to stay relevant – the MUSQ ETF is like a backstage pass. If you’re looking for a sector that may adapt to economic ups and downs while continuing to thrive, considering an investment in MUSQ might just be music to your ears.
*For a complete list of MUSQ holdings, please click here. Holdings are subject to change.
Is your portfolio hitting the right notes? Explore MUSQ >>
[1] IFPI Global Music Report 2025. https://globalmusicreport.ifpi.org
[2] Goldman Sachs, Music in the Air Report, May 1, 2024. https://www.goldmansachs.com/pdfs/insights/pages/music-in-the-air--focus-on-monetisation,-emerging-markets-and-ai--updating-global-music-industry-forecasts-f/music-redaction.pdf
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).
Risk Disclosures
There is no guarantee the Fund will achieve its stated objectives.
In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles or social, economic or political instability in other nations.
Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.
In addition to the normal risks associated with investing, investments in small- or mid-capitalization companies typically exhibit higher volatility.
The Fund’s concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors.
The Fund is non-diversified.
The Fund is new and has a limited operating history for investors to evaluate. A new and smaller fund may not attract sufficient assets to achieve investment and trading efficiencies.
The Fund may invest in securities denominated in foreign currencies. Because the Fund's NAV is determined in U.S. dollars, the Fund's NAV could decline if currencies of the underlying securities depreciate against the U.S. dollar or if there are delays or limits on repatriation of such currencies. Currency exchange rates can be very volatile and can change quickly and unpredictably.
All investing involves risk, and asset allocation and diversification do not guarantee a profit or protection against a loss. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, might be worth more or less than their original cost. ETFs are subject to risks similar to those of stocks, as well as other risks specific to the particular ETF.
ETF shares are traded on exchanges, and are traded and priced throughout the trading day. ETFs permit an investor to purchase a selling interest in a portfolio of stocks throughout the trading day. Because ETFs trade on an exchange, ETF shares are bought and sold at market price (not NAV). The prices of ETFs may sometimes vary significantly from the NAVs of a ETFs’ underlying securities. Brokerage commissions will reduce returns.
Exchange Traded Concepts, LLC serves as the investment advisor. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.