"Listening to Music Instead of Watching Movies"... Sales Surpass in the Global Market

Impact of Music Streaming Activation and LP Revival

Reports have emerged that the global music industry has surpassed the film market in size. The boom in streaming platforms and the resurgence of LP records are credited with driving the growth of the music market.

According to a report by the International Federation of the Phonographic Industry and the International Confederation of Societies of Authors and Composers (CISAC), cited by major foreign media on the 25th (local time), the annual revenue generated worldwide from copyrighted music last year reached $45.5 billion (approximately 63.6 trillion KRW), a 10% increase compared to the previous year. This figure not only exceeds last year’s film industry revenue ($33.2 billion) but also surpasses the film industry’s peak revenue of $41.9 billion (58.6 trillion KRW) recorded just before the pandemic in 2019.

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Will Page, the author of this report and former chief economist at the music streaming platform Spotify, stated, "This is undoubtedly a boom period for the music industry," adding, "The film industry’s pain is the streamers’ gain." He further explained, "Streaming platform users tend to spend more on music than on filmmakers," and "If you had said in 2015 that music would catch up to the film market, you probably would have been laughed at."

The growth of the music streaming market has benefited record labels and artists. Their revenue increased by 12% year-on-year to $28.5 billion, accounting for about two-thirds of total sales. The remaining one-third was enjoyed by music publishers and composers who manage copyrights.

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The report indicates that sales of CDs and LP records have shown a steeper growth rate than streaming service revenues. In particular, LP sales increased by 15.4% compared to the previous year, and the report forecasts that by the end of this year, LP sales revenue in the United States alone will reach $1 billion, soon surpassing CD sales.

Foreign media explained, "For music publishers and composers, the value of live performances now exceeds the revenue generated simply by playing existing records in retail stores and hospitality venues," adding, "Old bands like Oasis have decided to reunite as the popularity of live music surges, and artists like Coldplay are increasing the number of nighttime performances, with artists actively working to generate revenue."