The global music industry just crossed a symbolic threshold.
Worldwide recorded music revenues reached USD $31.7 billion in 2025, surpassing $30 billion for the first time and marking the industry’s eleventh consecutive year of growth.
That figure, revealed within the IFPI‘s Global Music Report 2026, is more than double the industry’s nadir of $13.1 billion in 2014.
The new GMR report (which you can access through here) showed that global growth accelerated, too: the global industry expanded by 6.4% YoY in 2025, up from the 4.7% rate posted in 2024, adding USD $1.9 billion in a single year.
Speaking to MBW directly after the report’s launch on Wednesday (March 18), IFPI CEO Victoria Oakley is in a buoyant mood.
“Growth in our industry is obviously good for us, but good for artists, good for fans, good for consumers,” she says. “It was really nice to be able to announce good news.”
That good news included recorded music growth in every region, with four posting double-digit gains.
Paid subscription streaming saw revenues climb8.8% YoY, accounting for more than half of global revenues for the first time, while the number of users of paid subscription accounts worldwide rose to 837 million – inching ever closer to 1 billion.
The report’s geographic picture was equally striking. China, a market that has proven music fans are willing to pay for higher-priced premium subscription tiers (see Tencent Music’s 20m ‘Super VIP’ subs), leapfrogged Germany to become the world’s fourth-largest recorded music market, growing 20.1% YoY.
“More consumers are choosing to come to music [in China],” says Oakley, “and more of those consumers are paying more in multiple different ways.”
Latin America was the fastest-growing region overall at 17.1% YoY — its 16th consecutive year of growth — with Brazil climbing to No.8 and Mexico was the No.10 largest global market after overtaking Italy and Australia in 2025. “Latin America is growing really strongly,” says Oakley, pointing to artists like Bad Bunny and Rosalía as evidence that “you don’t have to sing in English” to top global charts.
Physical formats, meanwhile, staged a rebound, growing8.0% YoY globally, buoyed by a return to form for physical sales in Japan.
The full version of the Global Music Report Premium Edition 2026, which can be purchased here, digs deeper into each of these trends – with market-by-market revenue breakdowns, format-level data, and regional analysis covering more than 70 countries. (IFPI tells us that discounted access to the report and dataset is available for academic and non-profit organizations, as well as record labels, publishers, and distributors).
Outside of the high-growth emerging markets, the United States – the world’s single-largest recorded music market – grew just 3.3% YoY, an improvement on 2024, but evidence of the world’s most established streaming market’s maturity compared to the double-digit gains being posted elsewhere.
Oakley, though, is unfazed: “Anything that starts with a 3 is still a number that a lot of sectors would be envious of,” she tells MBW.
“I’m not worried about the US market,” she adds, pointing to global interest in Country Music and the success over the past 12 months of US artists like Taylor Swift, the world’s biggest-selling recording artist for a record sixth time.
“Growth in our industry is obviously good for us, but good for artists, good for fans, good for consumers.”
Victoria Oakley, IFPI
IFPI’s CEO joined the organization in June 2024 from strategic communications consultancy Portland, bringing nearly two decades in the British Diplomatic Service – including stints in Washington D.C., Brussels, and the Eastern Caribbean, where she served as High Commissioner – followed by a period as Google‘s Global Public Policy Director.
It’s a background that maps neatly onto the challenges, political, legal, and operational, facing the industry right now.
In our interview below, Oakley is candid about two threats she sees as defining challenges for the next chapter of the music business: streaming fraud, which she describes as “really lazy fraud” that is “really fixable” – and AI policy, where she warns that text and data mining exceptions risk undermining the licensing deals the industry is actively striking.
“I need governments to listen to us and to see that we are doing this,” she says. “What we really don’t want to see is legislation that pulls completely in the other direction.”
Here, Oakley discusses the IFPI’s 2025 global revenue figures, the markets driving growth, and why she sees “plenty of room” for the industry to keep climbing…
Photo Credit: ElenaR/Shutterstock
THIS IS THE $30 BILLION MILESTONE. HOW SIGNIFICANT IS THAT, PSYCHOLOGICALLY, FOR THE INDUSTRY?
I think it’s significant. If you look at that curved graph of where we were before streaming, and how we’ve had to build back up since, it’s really healthy to see that we’re now in our fifth peak.
I don’t think it changes how we talk to policymakers at all. We’ve always been an industry that is more present in people’s minds and perhaps has more clout than perhaps a $30 billion [industry normally would].
GROWTH ACCELERATED FROM 4.7% TO 6.4%. WHAT WERE THE BIGGEST FACTORS?
The biggest driver continues to be the increase in paid subscription streaming – more users, more people signing up, price increases, and also some of that interesting stuff you’re seeing in the tiers that certain platforms are offering.
“The biggest driver continues to be the increase in paid subscription streaming – more users, more people signing up, price increases, and also some of that interesting stuff you’re seeing in the tiers that certain platforms are offering.”
The other thing that’s driven the growth is this rebound of physical, which I find so fascinating. Vinyl is in its 19th year of consecutive growth. It’s no surprise that people still buy records. But what’s more surprising is the other physical formats. I was talking to friends about this at the weekend and saying, “Does anybody buy CDs anymore?” And yes, they do.
That has significantly come from the fact that the Asian markets – Japan and South Korea in particular – returned to growth in 2025 with strong K-Pop and J-Pop releases in the year, which is what’s driven that bump in physical.
HOW MUCH FURTHER CAN PAID STREAMING PENETRATION GROW GLOBALLY?
I think the room for growth is very clear. If this is increasingly consumers’ route of choice for listening to music, and if the platforms are continuing to innovate – whether that’s tiers, superfan engagement, or additional [services] – I see plenty of room for growth. More people are becoming subscribers, more people are paying more for different services within their subscription.
“People are paying for sport. People are starting to pay for TV. I’d like to see music as the next one in that step.”
India is the classic example. I was there recently, and it feels like lots of people are on one, if not two, streaming devices a lot of the time – and most of that is coming through the free tier. There’s lots of evidence [of paid conversion] being done successfully by other streaming services [for] TV, video on demand, and most famously, with cricket.
People are paying for sport. People are starting to pay for TV. I’d like to see music as the next one in that step.
CHINA OVERTOOK GERMANY TO BECOME THE FOURTH-LARGEST MARKET, GROWING 20.1%. WHAT’S DRIVING THAT?
China has its own impressive talent and repertoire, more and more of whom are coming to the fore. There are a number of platforms, many of which have increased their prices and are offering tiered, super-premium [services]. So you are seeing more consumers choosing to come to music, and more of those consumers paying more in multiple different ways.
One interesting differentiator between China and the next one up – the UK – is revenue from public performance and broadcast rights. Although these rights have been enshrined in Chinese law for a while, operationalizing it has proven quite tricky.
But there may come a time when China’s ability to fully make those collections kicks in, and coupled with continued growth, I think that could be really stellar.
LATIN AMERICA WAS THE FASTEST-GROWING REGION AT 17.1%. WHAT OPPORTUNITIES ARE YOU SEEING?
Latin America is growing really strongly. Brazil up to number eight, Mexico into the Top 10.
Latin music has been one of the huge beneficiaries of this democratization that’s come from streaming. People all over the world can be reached by Latin music, and it’s eminently accessible. A lot of people speak Spanish.
Credit: PressBad Bunny
But what you’ve also got is the Rosalía phenomenon: you don’t have to sing in English [to be a global superstar]. Bad Bunny (pictured) wins the Grammy for Album of the Year for an album entirely in Spanish. I think there’s a really exciting period ahead for Latin America.
NORTH AMERICA GREW 3.5%, ONE OF THE SLOWEST-GROWING REGIONS. WHAT DOES THAT TELL US?
Anything that starts with a three is still a number that a lot of sectors would be envious of. I used to work in consultancy, and lots of the businesses I used to look after would be delighted to announce 3% in growth. It is a very large and very well-established market already.
Credit: PressTaylor Swift was the world’s top-selling recording artist in 2025 – for the sixth year in a row
It continues to grow in multiple genres. The country music scene is phenomenal – it’s having a real push about finding its reach internationally. The biggest export focus for country music right now is Germany.
And look at Taylor Swift in this past 12 months. I’m not worried about the US market.
JAPAN RETURNED TO GROWTH AFTER A FLAT 2024. IS STREAMING GAINING GROUND THERE TOO?
One of the reasons there’s a global bump in physical is because there’s been a bump in Japan’s numbers. I think that’s mostly due to artists’ releases.
Snow Man released an album at the beginning of 2025 and Mrs GREEN APPLE released 10 half-way through the year. It must be the only place in the world where you can go to Tower Records and there are still eight floors selling records and CDs and videos. It feels like my youth.
Snow Man
But streaming is growing in Japan, and there’s an interesting conversation about when the tipping point comes. So far, the superfan piece in Japan has principally shown up around physical and ownership of products.
But if we start to see those premium tiers and different services – and even things using AI in an ethical and agreed way that allow you to engage differently with your artist – will that lead a generation to find that their superfan engagement can come through a streaming platform, rather than mostly through physical?
HOW CONFIDENT ARE YOU THAT CURRENT MEASURES ON STREAMING FRAUD ARE KEEPING PACE WITH THE SCALE OF THE PROBLEM?
At the moment, no. It’s not enough, because streaming fraud is still happening.
What we find particularly frustrating is [that] it’s really lazy fraud, and it’s really fixable. It requires all of those actors within the streaming value chain to come together and act on a similar set of principles.
“Unless we’re properly sharing [intelligence] amongst platforms and distributors, fraudsters just get shut down somewhere and move to another [platform]. You end up playing Whac-A-Mole.”
I need to see ‘know your customer’-type practices that are much tighter at the beginning – I think we can learn a lot from financial services. [We need] better vetting of material that [goes] onto platforms, good mechanisms to take down [fraud], and the critical piece: sharing.
Unless we’re properly sharing [intelligence] amongst platforms and distributors, fraudsters just get shut down somewhere and move to another [platform]. You end up playing Whac-A-Mole.
WHAT IS THE ONE THING YOU’D LIKE TO SEE FROM POLICYMAKERS ON AI?
I have a really clear view on this: We need governments to listen to us and to see that we are doing this. There are, I think, a dozen licensing arrangements in place, further partnerships and collaborations, and no doubt more to come – because we’re right at the beginning of this journey.
My concern is with policymakers who want to pass legislation that pulls completely in the other direction. We don’t want to see further text and data mining exceptions. We don’t want to see compulsory licensing.
It’s very simple. The music market will do this, and will do it well – just as it did in streaming, which is entirely based on licensing. What I don’t want to see is [a regulatory] vision that impedes that.
Music Business Worldwide
The global music industry has reached a significant milestone, with recorded music revenues surpassing USD $31.7 billion in 2025, marking the first time the industry has crossed the $30 billion threshold and achieving its eleventh consecutive year of growth. This growth, reported by the International Federation of the Phonographic Industry (IFPI) in its Global Music Report 2026, represents a remarkable recovery from a low of $13.1 billion in 2014. The industry saw an acceleration in growth, increasing by 6.4% year-on-year in 2025, compared to 4.7% in 2024, adding an impressive $1.9 billion in just one year.
IFPI CEO Victoria Oakley expressed optimism about the growth, emphasizing its benefits for artists, fans, and consumers alike. The report indicated that recorded music revenues rose across all regions, with four regions experiencing double-digit growth. Paid subscription streaming, a major revenue driver, increased by 8.8% year-on-year, accounting for over half of global revenues for the first time, as the number of paid subscription users worldwide climbed to 837 million, approaching the 1 billion mark.
Geographically, China emerged as a key player, overtaking Germany to become the world’s fourth-largest recorded music market, with a remarkable growth rate of 20.1%. This growth can be attributed to Chinese consumers’ willingness to pay for premium subscription tiers, as exemplified by Tencent Music’s 20 million ‘Super VIP’ subscribers. Oakley noted that more consumers in China are engaging with music and exploring various payment options.
Latin America was highlighted as the fastest-growing region, with a growth rate of 17.1%. This marked the region’s 16th consecutive year of growth, with Brazil and Mexico emerging as significant players in the global market. Oakley noted that artists like Bad Bunny and Rosalía demonstrate that non-English music can thrive on global charts, reflecting the accessibility of Latin music.
Physical music formats also saw a resurgence, growing by 8.0% year-on-year, driven by a renewed interest in physical sales in Japan. The report indicates a fascinating trend, with vinyl sales continuing their growth for 19 consecutive years, contradicting the belief that physical media is obsolete. Oakley emphasized that while the U.S. market, the largest in the world, grew by 3.3%, it remains a mature market compared to the accelerating growth in emerging markets.
Oakley, who joined IFPI in June 2024, has a rich background in diplomacy and public policy, which informs her perspective on the current challenges facing the music industry. She identified two primary threats: streaming fraud and the need for effective AI policy. Oakley described streaming fraud as « lazy » and emphasized the need for better collaboration among industry players to combat it effectively.
In discussions about growth potential, Oakley expressed confidence in the future of paid streaming. She noted that as more consumers opt for streaming services, the potential for growth is substantial, particularly in markets like India, where many people are using multiple streaming platforms.
The report also highlighted the challenges and opportunities that exist within the industry, particularly in regions like China and Latin America, where there is a burgeoning demand for music and unique local talent. Oakley discussed the significance of the increase in public performance and broadcast rights in China, which could further enhance the market’s growth if operationalized effectively.
While North America’s growth is slower, Oakley remains optimistic, citing the global interest in genres like country music and the ongoing success of U.S. artists such as Taylor Swift. She believes the U.S. market can still thrive despite its maturity.
Japan’s return to growth after a flat 2024 was attributed to successful local releases and a growing interest in streaming. Oakley emphasized the need for Japan to embrace premium tiers and creative engagement strategies to foster a new generation of music fans.
Regarding streaming fraud, Oakley expressed concern that current measures are insufficient, calling for stronger practices akin to those in financial services to ensure better vetting and intelligence sharing among platforms. She highlighted the importance of collaboration to effectively combat fraud in the streaming space.
On the topic of AI, Oakley urged policymakers to recognize the industry’s efforts in establishing licensing arrangements and collaborations. She expressed her apprehension about potential legislation that could hinder the industry’s growth, particularly concerning text and data mining exceptions that could undermine licensing deals.
In summary, the global music industry is experiencing a significant resurgence, driven by growth in streaming, the emergence of new markets, and a renewed interest in physical formats. While challenges such as streaming fraud and the implications of AI remain, the overall outlook is positive, with opportunities for continued expansion and innovation. The IFPI’s Global Music Report 2026 underscores the resilience of the industry and the potential for future growth, particularly in emerging markets and diverse music genres.
