Music industry revenues slow as pandemic-era CD boom fades

Growth in global recorded music revenues more than halved last year after a pandemic-era surge in demand for tapes and CDs went into reverse, adding to a broader slowdown across the industry as it grapples with the threat from AI.

Total music revenues rose 4.8 per cent to almost $30bn last year, according to IFPI, which represents the recording industry worldwide. That was down from more than 10 per cent growth in 2023, and marked the slowest growth for almost a decade. 

The slowdown was led by a fall in physical music revenues, which dropped 3.1 per cent to $4.8bn, compared with an unexpected 13.4 per cent jump the previous year, as consumers continued to spend on vinyl and tapes following a resurgence during the Covid-19 crisis.

Vinyl still grew modestly last year, with the format now becoming a market as much for collectors as music listeners. But sales of CDs and tapes fell. Meanwhile the US — the music industry’s biggest market — weakened, recording growth of just 2.2 per cent last year.

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