Global Music Production and Distribution - Market Research Report (2014-2029)
New York, United States
Last Updated: June 2024
Q8712-GLRevenue
$40.4bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
91,440
Businesses
18,038
Wages
$X.Xbn
Global Music Production and Distribution industry analysis
Digital music has ultimately shifted how artists engage with fans, a transition that has had major implications for global music producers and distributors. Digital sales have plummeted as subscriptions to streaming platforms that provide massive libraries of albums surge. Physical sales have wavered but declined considerably as a share of revenue because of surging growth from streaming royalties. This pivot toward online music streaming platforms has not only revitalized the industry but also leveled the playing field for independent artists and labels. Despite this, the Big Three major labels, Sony, Universal Music Group and Warner Music Group, still dominate the industry. Industry-wide revenue has been growing at a CAGR of 3.8% over the past five years and is expected to total $40.4 billion in 2024, when revenue will jump by an estimated 3.5%, with profit set to climb to 12.6%.
Trends and Insights
- Streaming royalties drive growth. The shift to digital music has led music producers and distributors to shift their dependence from physical and digital album sales to streaming royalties.
- Streaming's taken over physical and digital album sales. The shift to streaming platforms like Spotify and Apple Music has significantly reduced the demand for physical and digital albums. However, physical album sales are still inching forward, thanks to vinyl collectors and superfans.
- Music producers and distributors thrive in North America. The US is the largest user of music licensing in advertising with the film and TV epicenter of Hollywood, driving the largest music producers and distributors to North America.
- Major labels still offer big advantages. Despite the rise of streaming, working with major record companies remains attractive to artists due to their strong control over publishing, licensing, and extensive media reach.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 3.8 % over the past five years, to reach an estimated $40.4bn in 2024.
Trends and Insights
Music producers and distributors adapt to the shift to streaming
- Streaming platforms like Spotify and Apple Music, which boast an expansive music library, have met consumers' desires for a varied supply of old and new music. This has siphoned demand from physical music consumption and digital downloads. While revenue generated from streaming platforms like Spotify and Apple Music is lower compared to album and song sales, music producers and distributors continued to enjoy growth based on volume.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Music producers and distributors will continue to rely on streaming and synchronization
- As digital album sales continue to plummet, music producers and distributors' growth will increasingly come from streaming and synchronization.
Biggest companies in the Global Music Production and Distribution
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Universal Music Group | 9,661.2 | 1,538.0 | 15.9 | |
Sony Corporation | 7,184.2 | 1,294.0 | 18.0 | |
Warner Music Group Inc. | 5,456.9 | 791.7 | 14.5 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Physical sales, Streaming royalties and digital downloads and Performance royalties. Physical sales is the largest segment of the Global Music Production and Distribution.
Trends and Insights
Physical sales dip amid the streaming boom
- This segment consists of selling CDs, vinyl records, DVDs and cassettes. While physical sales have only dipped, this segment's share of revenue has plummeted because of massive growth in streaming royalties.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Global Book Publishing
- Global Movie Production & Distribution
- Global Sports Betting & Lotteries
Complementors
- Global Advertising Agencies
International industries
- Independent Label Music Production in the US
- Major Label Music Production in the US
- Music Publishing in the US
- Audio Production Studios in the US
- Music Publishing in Canada
Table of Contents
About this industry
Industry definition
Operators in this industry sign musicians and artists to recording contracts, allocate budgets for artists' recordings, produce and master artists' work, distribute artists' music to retail and promote the artists' work through various advertising campaigns. This industry also includes music publishing, which involves leasing music as intellectual property for use beyond live performance such as in promotional material and other forms of media, notably, streaming services.
What's included in this industry?
Negotiating recording, publishing, licensing and distribution contractsProducing and mastering artist recordingsDistributing recordings to retail outletsManaging and promoting artist rostersDistributing music to online platforms, including streaming servicesCompanies
Universal Music GroupSony CorporationWarner Music Group Inc.Purchase this report to view all 3 major companies in this industry.
Related Terms
LABELP2PBIG THREEPerformance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Streaming royalties drive growth. The shift to digital music has led music producers and distributors to shift their dependence from physical and digital album sales to strea...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Streaming's taken over physical and digital album sales. The shift to streaming platforms like Spotify and Apple Music has significantly reduced the demand for physical and d...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Music producers and distributors thrive in North America. The US is the largest user of music licensing in advertising with the film and TV epicenter of Hollywood, driving th...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Business Locations Charts
- Share of global output by region in 2024
- Share of population compared to output in each region in 2024
- Data tables
- Share of global output by region in 2024
- Detailed analysis
- Geographic spread of the industry across Global, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Major labels still offer big advantages. Despite the rise of streaming, working with major record companies remains attractive to artists due to their strong control over pub...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The Big Three are increasing their legacy catalogs. UMG recently acquired Neil Diamond's entire discography, WMG now owns David Bowie's songbook and SME bought Bob Dylan's po...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Universal Music Group's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Sony Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Warner Music Group Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Universal Music Group, and factors influencing its performance in the industry
- Description and key data for Sony Corporation, and factors influencing its performance in the industry
- Description and key data for Warner Music Group Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The internet is music's main stage now. As more people get online, artists and labels gain more exposure, though piracy is still a thorn in the industry's side.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Streaming boosts profit but pays less than album sales. While streaming has cut operational costs for distributors, the revenue per stream is lower, meaning music producers n...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources globally include:
- United Nations Comtrade
- Organization for Economic Cooperation & Development
- World Bank
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Global Music Production and Distribution industry in Global in 2024?
The market size of the Global Music Production and Distribution industry in Global is $40.4bn in 2024.
How many businesses are there in the Global Music Production and Distribution industry in 2024?
There are 18,038 businesses in the Global Music Production and Distribution industry in Global, which has grown at a CAGR of 1.7 % between 2019 and 2024.
Has the Global Music Production and Distribution industry in Global grown or declined over the past 5 years?
The market size of the Global Music Production and Distribution industry in Global has been growing at a CAGR of 3.8 % between 2019 and 2024.
What is the forecast growth of the Global Music Production and Distribution industry in Global over the next 5 years?
Over the next five years, the Global Music Production and Distribution industry in Global is expected to grow.
What are the biggest companies in the Global Music Production and Distribution market in Global?
The biggest companies operating in the Global Music Production and Distribution market in Global are Universal Music Group, Sony Corporation and Warner Music Group Inc.
What does the Global Music Production and Distribution in Global include?
Negotiating recording, publishing, licensing and distribution contracts and Producing and mastering artist recordings are part of the Global Music Production and Distribution industry.
Which companies have the highest market share in the Global Music Production and Distribution in Global?
The company holding the most market share in Global is Universal Music Group.
How competitive is the Global Music Production and Distribution industry in Global?
The level of competition is high and increasing in the Global Music Production and Distribution industry in Global.
