According to figures released in the International Federation of the Phonographic Industry’s (IFPI’s) 2024 Global Music Report, sub-Saharan Africa was the only region to surpass 20% growth as revenues climbed by 24.7%, fuelled by gains in paid streaming revenues (+24.5%). Sub-Saharan Africa was also the fastest growing region in 2022 after posting a 34.7% increase.
South Africa remained the largest market in the region, contributing 77% of regional revenues and growing by 19.9%.
“It’s an exciting time for the music industry in Sub-Saharan Africa,” IFPI sub-Saharan Africa director Angela Ndambuki said. “Without a doubt, the strategic investment by the record companies over the years in the region has catapulted the growth of the region’s recorded music industry. Streaming numbers have grown year on year and the potential of the region is promising, especially with the spectacular performance of African artists on the global stage.”
The report shows that total global trade revenues reached $28.6bn in 2023, constituting a ninth consecutive year of growth. Every region across the globe experienced positive growth, with five of the world’s seven regions posting double-digit percentage gains.
Streaming revenues accounted for the majority of revenue growth and total share of the market. Subscription streaming revenues alone grew by 11.2% and made up almost half (48.9%) of the global market.
In 2023, the number of paid subscriptions to music streaming services surpassed 500 million for the first time and there are now more than 667 million paying users.
There was strong growth in other formats, too, particularly physical revenues (+13.4%) and gains in income from performance rights (+9.5%). This is the third consecutive year in which both digital and physical revenues have increased simultaneously.
“The region’s collective management industry now more than ever must intentionally and positively exploit revenue generation opportunities in the performance rights sector, both in broadcast and public performance,” Ndambuki said. “IFPI continues to support music licensing companies to spur compliance, especially among broadcasters who continue to exploit sound recordings without fairly compensating record companies and self-released artists. There must be a concerted effort by stakeholders including governments, users of music and industry players to work towards improving policies and compliance to grow the region’s music business. This is Africa’s moment, we must not lose the momentum.”
Summary of regional growth in 2023
- Sub-Saharan Africa +24.7%: Sub-Saharan Africa once again had the fastest growth of any region and was the only one to surpass 20% growth: revenues climbed by 24.7%, fuelled by gains in paid streaming revenues (+24.5%). South Africa remained the largest market in the region, contributing 77% of regional revenues after growth of 19.9%.
- US and Canada +7.4%: Representing the greatest share of global recorded music revenues (40.9%), there was a gain of 7.4% in 2023 in the US and Canada. Revenues grew at a faster rate than in 2022 (+5.1%). Revenues from the US, the world’s single largest recorded music market, rose by 7.2%. In Canada, another top-10 market, revenues jumped by 12.2%.
- Europe +8.9%: Representing more than a quarter of global revenues (28.1%) after revenue growth of 8.9%, Europe remained the second largest region in the world for recorded music revenues in 2023. The region’s three biggest markets all recorded healthy growth: the UK (+8.1%), Germany (+7%) and France (+4.4%).
- Asia +14.9%: The third-largest region globally, revenues in Asia rose by 14.9% in 2023, driven by strong gains in physical and digital revenues, and continuing a multi-year upward trajectory. The two largest Asian markets saw healthy growth: revenues from Japan, the world’s second biggest market, were up by 7.6% and there was steep growth in China (the fifth largest market) of 25.9%, the fastest rate of increase in any top 10 market.
- Latin America +19.4%: In the 14th consecutive year of revenue growth, recorded music revenues in Latin America rose steeply in 2023 by 19.4%, once again outpacing the global growth rate. There were double-digit percentage climbs in revenues in Brazil (+13.4%) and Mexico (+18.2%), the region’s largest markets. Streaming was the key driver and made up 86.3% of the region’s revenues.
- Australasia +10.8%: Australasia posted double-digit percentage growth of 10.8% in 2023, an increase on the 8.3% rise in 2022 and boosted by an increase in subscription streaming revenues (+13.5%). Revenue growth accelerated in Australia, a global top 10 market, up by 11.3%. In New Zealand, revenues increased by 8.4%.
- Middle East and North Africa +14.4%: Streaming revenues dominated once more in MENA with a 98.4% share of the market in that region. Total MENA revenues rose by 14.4% in 2023, exceeding the global growth rate.
“The figures in this year’s report reflect a truly global and diverse industry, with revenues growing in every market, every region and across virtually every recorded music format,” IFPI chief financial officer and interim joint head John Nolan said. “For the third year in succession, both physical and digital formats grew with a strong rise in the users of paid streaming subscribers – as well as price increases – contributing significantly to total revenue growth.”
“This growth results from record companies’ sustained investment in artists and their careers – more than $7.1bn annually on A&R and marketing alone – and the impact it has on music ecosystems all over the world. Fans are increasingly valuing music, with unprecedented choice and access to new releases, with 2023’s IFPI Global Charts including a diverse range of new genres and artists. This is testament to the talent of these artists, the passion of their fans, and the work of record labels both in championing artists and providing the best possible foundations for their global success.”
IFPI chief legal officer and interim joint head Lauri Rechardt added: “The sustained growth of the recorded music market is encouraging, but it’s also right for us to acknowledge the challenges the industry faces, including streaming fraud, digital piracy in all its forms and, of course, the threat from the abuse of generative artificial intelligence if it is not developed responsibly and with respect for artists’ and labels’ rights.”
Access IFPI’s 2024 Global Music Report here.
