Associate Stephen Cartwright and Trainee Solicitor Charlie Edwards discuss the IFPI’s Global Music Report 2023 and comment on the state of the global music industry.
Revenue growth from recorded music slows down
Global recorded music revenues grew by 9% year-on-year in 2022, climbing to a total of $26.2 billion. This marked the global music market’s eighth consecutive year of growth. However, whilst this is encouraging, it is only half the level of 2021’s growth when revenues were up 18.5%.
Paid subscription streaming the driving force
Although the majority of users are still using advertising-supported streaming, according to the International Federation of the Phonographic Industry (IFPI), subscription audio streaming revenues grew by 10.3% to $12.7 billion and there were 589 million users of paid subscription accounts at the end of 2022 – this is an increase of 80 million from 2020.  Looking at streaming as a whole (both paid and advertising-supported streaming), according to IFPI, this equates to $17.5 billion which represents 67% of the total global recorded music revenues.
There was growth in other areas too with physical revenues remaining resilient, rising by 4% which marked the area's second consecutive year of growth. Performance rights revenue also increased by 8.6% showing a return to pre-pandemic levels. 
Which country has the biggest music industry?
Every region around the world saw music industry growth in 2022 and China joined the top five biggest music markets for the first time. The fastest growing region in 2022 meanwhile was Sub-Saharan Africa, growing by 34.7%. This is largely driven by South Africa which is the region’s biggest market.
Further, the top 10 acts in the world came from seven different countries, with South Korea leading the way with three acts (BTS, Seventeen and Stray Kids). Puerto Rican artist Bad Bunny is ranked at number4 and has undoubtedly played a big part in the growth seen in Latin America, which has close to tripled its revenue base in the last 5 years.
The top ten biggest music markets are listed below :
7. South Korea
While there remains strong growth in the market, even across physical sales, the latest IFPI report emphasises the increasing importance of streaming and how sensitive the industry will be to any change.
The accessibility of streaming platforms has undoubtedly allowed emerging markets such as Latin America to thrive however, Simon Robson, head of Warner Music Group’s international recorded music operations outside the U.S. and the U.K., warns that “it would help if music subscription pricing could reflect the realities of inflation, which, as we’ve seen with video streaming services, have been putting up their prices quite significantly.”
This was echoed by IFPI Chief Executive Frances Moore who said: “Record companies’ investment and innovation has helped make music even more globally interconnected than ever… However, as the opportunities for music continue to expand, so too do the areas in which record companies must work to ensure that the value of the music artists are creating is recognised and returned.” 
Click here to view the IFPI’s Global Music Report 2023 in full.