Jukebox
March 4, 2025
The global music industry is projected to reach $163.7 billion by 2030, marking an era of unprecedented growth and opportunity. According to Goldman Sachs' latest "Music in the Air" report, the industry is set to grow at a 7.6% compound annual rate, making it an increasingly attractive space for investors interested in music royalties.
Key Trends Driving Industry Growth
Streaming Price Increases After a decade of static pricing, major streaming platforms like Spotify and Apple Music implemented their first significant price increases in 2023, with more expected. This shift suggests stronger revenue potential for rights holders and royalty investors, as streaming revenues directly impact royalty payments.
Emerging Markets Expansion Emerging markets are becoming a major driver of streaming growth, expected to contribute 70% of new subscribers by 2030. While these markets currently generate lower revenue per user, they represent a massive growth opportunity for future royalty earnings.
Focus on "Superfans" The industry is developing new premium offerings for highly engaged listeners, with Goldman Sachs estimating a $4.5 billion market opportunity. These super-premium tiers could generate additional revenue streams that flow through to royalty holders.
Modernizing Royalty Models Streaming platforms are updating their payment models to better reward professional artists and authentic music, potentially providing more stable and fair royalty distributions to rights holders.
What This Means for Music Royalty Investors
These trends point to a maturing industry with multiple growth drivers. While traditional recorded music revenue is expected to grow at 8.1% annually through 2030, new revenue streams from emerging markets, price increases, and superfan monetization could provide additional upside for royalty investors.
The report suggests that now is an important time for the music industry, with improving monetization and expanding global reach creating opportunities for those invested in music rights. As the industry continues to evolve, understanding these trends can help inform investment decisions in music royalties.
Want to learn more about how you can invest in music royalties? Visit our Guide to Investing in Hit Songs
