According to the Global Music Report released today by the International Federation of the Phonographic Industry (IFPI), the industry generated revenue of $31.7 billion in 2025.
This 6.4% year-on-year increase marks the eleventh consecutive year of expansion, cementing a post-digital recovery that has transformed the face of entertainment.
Streaming continues to be the undisputed titan of the industry. In 2025, streaming revenues climbed past the $22 billion mark, now accounting for a staggering 69.6% of all global recorded music income.
The real story, however, lies in the “premium” shift. Paid subscription streaming—often considered the most stable revenue lighthouse—grew by 8.8%. With 837 million users now paying for music globally, the industry has successfully transitioned from the era of “free-to-all” to a value-based ecosystem.
“This growth is being driven by strong collaboration between artists and record companies,” stated IFPI CEO Victoria Oakley. She noted that this sustained capital flow is being reinvested back into diverse music communities, ensuring the next generation of global talent has a seat at the table.
In a surprising twist for the digital age, physical formats are experiencing a genuine renaissance. Far from being a relic of the past, physical sales grew by 8.0% in 2025.
Vinyl Records: The crown jewel of physical media grew by 13.7%, marking its 19th consecutive year of growth.
Performance Rights: Income from public broadcasts and live venues reached $2.9 billion, a modest but steady 0.3% increase.
While the numbers are celebratory, the report highlights two critical factors shaping the industry’s future: artificial intelligence and streaming fraud.
Rather than viewing AI as a pure antagonist, record labels are pivoting toward a “human-first” licensing framework. The goal is to ensure that AI-driven content supports human creativity rather than cannibalizing it.
Industry leaders are now calling on global policymakers to tighten copyright laws to ensure artists are compensated when their likeness or work is used to train generative models.
Victoria Oakley was blunt in her assessment of “streaming fraud,” describing it as a “direct threat” to the ecosystem. Fraudsters are increasingly using bots and manipulated content to artificially inflate play counts, siphoning money away from legitimate artists.
As the industry eyes the next report, the focus is shifting from simple “user acquisition” to “revenue protection.” With nearly a billion people soon to be paying for music, the challenge for labels will be balancing the high-tech potential of AI with the old-school integrity of the song.
WHAT YOU SHOULD KNOW
The global music industry is in its most robust state in decades, hitting a record $31.7 billion in 2025. While the 837 million paid subscribers are the primary engine of this growth, the key takeaway is the industry’s shift toward a “high-stakes” era of protection.
To sustain this momentum, the focus has moved beyond just gaining listeners to aggressively defending the value of human creativity—specifically by tackling streaming fraud and establishing ethical AI licensing to ensure that technological innovation enriches artists rather than exploiting them.
