The Power of Taylor Swift
With a financial performance that outshone most corporations, Taylor Swift raked in a staggering $1.82 billion in 2023, cementing her status as the biggest music artist of the year. The success was largely attributed to her Eras Tour, which amassed over $1 billion in revenue from ticket sales and merchandise. Swift’s accolades, including being named TIME Person of the Year and winning major awards at the GRAMMYs, underscored her dominance in the music industry.
The Industry’s Surge
However, it was not just Swift who reaped the rewards. The annual IFPI report revealed that global recorded music revenue surged to $28.6 billion, marking a substantial 10.2% year-over-year increase. While the IFPI report has long been considered the gold standard, alternative research from MIDiA Research showcased an even more impressive figure of $35.1 billion, with a focus on expanded rights revenue and independent artists’ earnings.
Streaming Dominance
Streaming continued to be a driving force behind the industry’s growth, with global subscription streaming revenues reaching $14 billion according to the IFPI report. This segment accounted for nearly half of the total market, with paid streaming subscribers and price hikes contributing significantly to revenue growth. The shift towards streaming services, particularly on smartphones, reflected changing consumption habits worldwide, with companies like Spotify, Apple, and Amazon capitalizing on the trend.
As the music industry thrives and evolves, considering investment opportunities in this space could be worthwhile. ETFs offer a compelling option for investors looking to leverage the expertise of a dedicated team. The MUSQ Global Music Industry ETF, a thematic ETF, provides concentrated exposure to various facets of the music ecosystem, encompassing streaming, live events, technology, and more.
The ETF’s diversified portfolio includes key players such as Spotify, Apple, Sonos, Universal Music Group, and Sony, offering investors a comprehensive view of the music industry landscape.
Featured photo by Chaz McGregor on Unsplash.
