The music industry is on the brink of a transformative period, according to the latest forecasts from Midia Research, a prominent entertainment industry analytics firm. Their highly-anticipated Global Market Music Forecasts report, released in June, paints an optimistic picture, projecting an unprecedented 51% surge in global recorded music industry revenues, reaching a staggering $42.4 billion by 2030. Moreover, retail spending in the music industry is expected to experience exponential growth, estimated to reach an impressive $87.1 billion by the end of the decade.
One of the most captivating findings is the projected rise in paying subscribers to music streaming services worldwide, expected to reach a staggering 1.1 billion by 2030. This surge in subscribers is predicted to be driven by emerging markets in Asia Pacific, Latin America, and other regions, emphasizing music’s universal appeal that transcends geographical boundaries.
Remarkably, Midia Research’s forecasts closely align with those of Goldman Sachs, a leading investment banking company. Goldman Sachs’ Music In The Air June report predicts a slightly higher recorded music trade revenue of $50.1 billion by 2030, along with a similar figure of 1.2 billion paid subscribers. The convergence of these projections from two highly respected entities instills confidence in the music industry’s promising future.
While both Midia Research and Goldman Sachs focus on consumer revenue, musician, content creator, and analyst Benn Jordan offers a more cautious perspective. In his recent findings, he raises concerns about potential layoffs at industry giants Moog, Apple, and Spitfire Audio. Although he hopes his predictions will be proven wrong, he highlights valid concerns that warrant attention. One significant development outlined by Jordan is the acquisition of Native Instruments by Francisco Partners, along with other music companies, for an extraordinary sum. This acquisition has raised doubts about Native Instruments’ long-term prospects and sparked speculation about the integration of Spitfire Audio into a subscription service, potentially leading to job cuts.
Surprisingly, even tech titan Apple is not immune to Jordan’s forecast, as he predicts the possibility of layoffs at the company, a scenario not seen since 1997. Despite Apple’s groundbreaking role in revolutionizing the music industry with iTunes and Apple Music, shifts in market dynamics and consumer preferences may impact the company’s workforce.
As the music industry charts a course into uncharted territory, these forecasts serve as essential guides for industry players and investors. The projected surge in revenues and subscribers brings promise for artists, producers, and record labels, heralding a new era of opportunities. However, Benn Jordan’s concerns remind us of the importance of adaptability and innovation in navigating the changing landscape of music technology. The journey ahead promises both excitement and challenges.
Written by: Artificial Intelligence Technology