Sub-Saharan Africa leads the way as global music industry revenue hits $28.6bn

Onome Amuge

The recorded music market in sub-Saharan Africa experienced unprecedented growth in 2023,as the region saw the highest growth rate of any region, with paid streaming revenues growing by 24.5 per cent. as reported by the International Federation of the Phonographic Industry (IFPI), the organisation that represents the recorded music industry worldwide. 

According to IFPI’s global music report, the global recorded music industry saw record-breaking growth in 2023, driven primarily by the increasing popularity of paid streaming services, according to IFPI. It also revealed that total trade revenues for the industry reached an impressive $28.6 billion, the ninth consecutive year of growth.

Paid music streaming subscriptions continue to be a major driver of growth in the recorded music industry, according to IFPI. Subscription streaming revenues grew by 11.2 per cent in 2023, making up almost half (48.9%) of the global recorded music market. The number of paid subscriptions surpassed 500 million for the first time, reaching a total of 667 million. Though the adoption of paid subscriptions varies by country, the growth was driven by factors such as the ease of use and value for money of subscription services, and the increasing availability of music across a wide range of devices. 

The growth of streaming is not the only factor driving the global recorded music industry’s resurgence. The report also noted strong growth in other formats, such as physical sales and performance rights. In fact, this was the third consecutive year in which both digital and physical revenues increased simultaneously, a testament to the industry’s ability to adapt to changing market conditions. The increase in physical revenues (up 13.4%) is particularly notable given the decline of physical media in recent years. Performance rights income also saw a healthy increase (up 9.5%), emphasising the important role that live performance and other public uses of music play in the industry.

The report highlighted the fact that the global recorded music industry’s growth in 2023 was truly a global phenomenon, with positive stories of growth from all corners of the world. In particular, five out of the seven regions tracked by IFPI saw double-digit percentage gains, including Africa, Asia, Europe, Latin America, and North America. 

Growth in the world’s regions

The United States and Canada represented the largest markets for recorded music in the world, accounting for 40.9 per cent of global revenues. In 2023, revenues in these markets grew by 7.4 per cent, faster than the previous year’s growth of 5.1 per cent. The United States, the world’s largest music market, saw revenues increase by 7.2 per cent, while Canada, another top 10 market, saw revenues jump by 12.2%. 

Europe emerged the second largest region for recorded music revenues, accounting for 28.1 per cent of the global market. The region saw revenue growth of 8.9 per cent in 2023, a testament to the strong consumer demand for music in Europe. The region’s three largest markets – the United Kingdom, Germany, and France – all recorded healthy growth, with the UK leading the way with 8.1 per cent growth. Germany and France also saw solid increases of 7.0 per cent and 4.4 per cent, respectively.

Asia was ranked the third largest region for recorded music revenues, and in 2023, the region saw a notable increase of 14.9 per cent. Japan, the world’s second largest music market, saw revenues rise by 7.6 per cent, while China, the world’s fifth largest market, experienced a remarkable 25.9 per cent increase in revenue, the fastest rate of increase among the top 10 markets. 

 For the fourteenth consecutive year, Latin America has seen a rise in recorded music revenues, with a steep increase of 19.4% in 2023. The region’s growth rate was once again higher than the global average, driven by double-digit percentage increases in Brazil and Mexico, the region’s largest markets. Streaming was the primary driver of this growth, accounting for 86.3% of the region’s total revenues. 

The Australasia region saw another year of double-digit growth in 2023, up 10.8% over the previous year. This is the fourth year in a row that the region has experienced double-digit growth, with subscription streaming being the main driver, growing by 13.5%. Revenue growth in Australia, one of the world’s top 10 music markets, accelerated to 11.3%, while New Zealand saw an increase of 8.4%. 

The Middle East and North Africa (MENA) region saw continued growth in its recorded music revenues in 2023, with streaming revenues accounting for an impressive 98.4 per cent of the market. Overall, revenues increased by 14.4 per cent, a rate that outpaced the global average. 

Commenting on the developments in the sub-Saharan region,Angela Ndambuki, IFPI’s director for sub-Saharan Africa,, noted that the region’s music industry is at an exciting juncture. She attributed the region’s growth to the strategic investments made by record companies over the years, which have helped to propel the industry forward. Ndambuki also highlighted the role of streaming in driving the growth of the region’s music industry, noting that streaming numbers have been increasing year after year. In addition, she pointed to the global success of African artists as a testament to the region’s potential.

According to Ndambuki, the collective management industry in the region has a significant opportunity to generate more revenue from the performance rights sector, both in broadcast and public performance.

“There must be concerted effort by stakeholders including government, 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,” he stated.

Commenting on the latest edition of the Global Music report, John Nolan, chief financial officer and interim joint head of IFPI, noted that the data reflects a truly global and diverse industry, with revenues growing in all markets, regions, and formats. He also highlighted the rise in the number of paid streaming subscribers, as well as price increases, as significant contributors to the industry’s overall revenue growth. In addition, Nolan pointed out that the diversity of the recorded music industry is reflected in the variety of formats and platforms in which music is consumed, including physical, digital, and live.

He added: “This growth results from record companies’ sustained investment in artists and their careers – more than $7.1 billion 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.

“Music has shown time and time again that it can evolve and innovate but the report demonstrates it is the partnership between artist and label which is at the heart of the growth of music markets worldwide with the ensuing positive impact these have on their local economies.”

Lauri Rechardt, chief legal officer and interim joint head of IFPI, echoed Nolan’s sentiments, noting that while the growth of the recorded music industry is encouraging, there are still challenges that need to be addressed. Among these challenges is streaming fraud, digital piracy in all its form, and the misuse of artificial intelligence (AI) technology, including the use of AI to generate music without proper attribution or payment to artists and labels. Rechardt stressed the importance of addressing these challenges to ensure a healthy and sustainable future for the industry.

“Music fans greatly value authenticity and our industry has a strong track record of licensing music and supporting the development of new services that create these experiences for fans. That said, we still need effective tools and the support of authorities to tackle unauthorised uses and to ensure the music ecosystem remains one that is sustainable for the long-term,” Rechardt stated.