Will the physical world dominate streaming? I hope so!
The recorded music market has undergone dynamic changes in recent years, and 2023 was no exception. According to the latest MIDiA Research report, global recorded music revenues grew by 9.8 per cent year-on-year to reach an impressive $35.1 billion1.
Streaming, which has been a major growth driver in the industry for years, reached revenues of $21.9 billion. However, what really catches the eye is that sales of physical music media, such as vinyl and CDs, also saw significant growth.
Analysis of the data shows that while streaming remains the dominant force, the physical world is not far behind. The increase in sales of physical media may come as a surprise to many, given how digitalisation and the availability of music online have changed the way we consume music.
So can we expect the physical world to dominate streaming in the near future? While the gap between the two segments is still significant, the upward trend in sales of physical media may suggest that the gap may be narrowing.
It is worth noting that vinyl, which only a few years ago was considered a relic of the past, is now enjoying a renaissance. Music lovers value the sound quality and experience that the analogue medium offers.
In conclusion, while streaming still reigns supreme in the recorded music market, the increase in interest in physical music media may indicate that it is no longer the only option for consumers. The increase in sales of physical media may not signal the end of the streaming era, but it certainly shows that for many people, music is more than just digital files.
