$14.2bn
$X.Xbn
25,171
765
$X.Xbn
Major record labels have finally adapted to the new age. While labels enjoyed strong growth before the Internet, the rise of illegal file sharing and the corresponding decline in album sales pressured the industry over the past two decades. The rapid adoption of streaming services has pushed album sales down even more and challenged major labels who needed to prepare for the fundamental shift to online music streaming. Still, things are on the mend for major labels as they have successfully adapted to the new streaming landscape. Major labels are increasingly focusing on optimizing music for streaming platforms. This has materialized through producing tracks with shorter intros, catchy hooks, and strong sonic qualities that stand out even when streamed at lower bitrates. Labels had to adapt their business models to generate revenue from streaming, which typically yields lower profit per stream than traditional album sales but makes up for this by mitigating many of the costs associated with physical releases.
Industry revenue has grown at a CAGR of 6.9 % over the past five years, to reach an estimated $14.2bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
---|---|---|---|---|
Warner Music Group Inc. | 1,901.2 | -67.4 | -3.5 | |
Sony Music Entertainment Inc. | 1,740.8 | 357.0 | 20.5 |
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Industry revenue is measured across several distinct product and services lines, including Physical sales, Digital downloads and Paid subscription streaming. Physical sales is the largest segment of the Major Label Music Production in the US.
Streaming music services have taken over
Record labels are responsible for finding musical talent, recording their work and selling it to retail outlets. The ability to oversee distribution of physical media and negotiate comprehensive publishing deals separates major labels from smaller independent labels. Major labels also commonly have deeper and broader talent rosters.
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NAICS 512230 - Major Label Music Production in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Revenue has grown as labels adapted to streaming. Album sales have continued to fall, but redrafting contracts and negotiating royalty rates has allowed major labels to more ...
Learn about an industry's products and services, markets and trends in international trade.
Streaming services have taken over. Major labels have been better able to monetize this channel than competing industries, boosting revenue and avoiding losses.
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
The West holds the most major labels. Los Angeles is a magnet for talented aspiring artists, giving major labels a steady stream of opportunities to find the next big star.
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.
Labels compete for talented artists. Establishing a solid reputation gives major labels bargaining power, but offered contracts must be competitive to secure a deal.
Learn about the performance of the top companies in the industry.
The Big Three are securing legacy catalogs. UMG recently acquired Neil Diamond's entire discography, WMG now owns David Bowie's songbook, and SME bought Bob Dylan's portfolio...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Intellectual property is secure. Major labels can rest easy knowing their artists' hard work is protected by US and international law. When breaches happen, trade organizatio...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Profit has contracted. Labels have had to adapt their business model to streaming, which typically yields lower profit per stream than traditional album sales.
Including values and annual change:
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Key data sources in the US include:
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:
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The market size of the Major Label Music Production in the US industry in United States is $14.2bn in 2024.
There are 765 businesses in the Major Label Music Production in the US industry in United States, which has grown at a CAGR of 10.0 % between 2019 and 2024.
The market size of the Major Label Music Production in the US industry in United States has been growing at a CAGR of 6.9 % between 2019 and 2024.
Over the next five years, the Major Label Music Production in the US industry in United States is expected to grow.
The biggest companies operating in the Major Label Music Production market in United States are Warner Music Group Inc. and Sony Music Entertainment Inc.
Negotiating recording contracts with artists and Purchasing the distribution and publishing rights to master recordings are part of the Major Label Music Production in the US industry.
The company holding the most market share in United States is Warner Music Group Inc..
The level of competition is high and increasing in the Major Label Music Production in the US industry in United States.