Taylor Swift: Setting the Stage Ablaze
The music powerhouse, Taylor Swift, smashed records by raking in a staggering $1.82 billion in 2023, outpacing the revenue of most corporations. Her Eras Tour played a significant role in this feat, grossing over $1 billion through ticket sales and merchandise. Swift’s remarkable year included prestigious accolades such as being named TIME Person of the Year and winning top honors at the GRAMMYs.
The Global Music Industry Flourishes
It wasn’t just Swift who hit the jackpot last year. According to the annual IFPI report, the global recorded music revenue surged to $28.6 billion, marking a substantial 10.2% year-over-year increase.
A contrasting report from MIDiA Research paints an even more thriving picture, pegging the global revenue at an impressive $35.1 billion. Emerging revenue streams like expanded rights income contributed to pushing the revenue boundaries in the industry.
Streaming Dominates the Airwaves
Streaming emerged once again as a driving force behind the music industry’s growth. IFPI’s Chief Financial Officer highlighted the pivotal role of paid streaming subscribers in propelling total revenue growth, with global subscription streaming revenues hitting $14 billion, a remarkable 11.2% increase year-over-year.
With users worldwide, particularly in the US, favoring streaming services through smartphones over physical media or digital purchases, companies like Spotify, Apple, and Amazon have experienced significant growth. Spotify’s net addition of 31 million premium users coincided with a 10% subscription price hike in most markets.
Other streaming giants like Apple and Amazon have followed suit, riding the wave of the streaming boom.
Investing in Musical Fortune
As the music industry continues its upward trajectory, investing in this space presents a lucrative opportunity. Thematic ETFs like the MUSQ Global Music Industry ETF offer concentrated exposure to the diverse music ecosystem, covering streaming, content and distribution, live events, and technology, among others.
The MUSQ ETF, featuring key players like Spotify, Apple, Sonos, Universal Music Group, and Sony, provides a well-diversified investment option for those looking to capitalize on the music industry’s growth.