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The Goldman Sachs Report
Revolutionizing the Global Music Industry
The music industry is at the cusp of a transformative era. The recent Goldman Sachs report sheds light on pivotal trends and innovations that promise to redefine the way we create, consume, and monetize music. Let’s dive into the core insights that will shape the future of this vibrant industry.
In this brave new world, we’re looking at an era of enhanced monetization. Streaming services are evolving, with price hikes for subscriptions and the introduction of super-premium plans designed for superfans. These innovations aren’t just incremental improvements—they’re game-changers.

By 2030, Goldman Sachs predicts a 13% revenue uplift potential from monetizing superfans. This is not just about higher prices; it’s about delivering unparalleled value that superfans are willing to invest in.
The traditional “pro rata” streaming payout model is archaic. It doesn’t serve the artist, the platform, or the listener in the way a modern system should.

Platforms like Deezer and Spotify are pioneering changes, modernizing this model to account for the increasing influx of new tracks, including those generated by AI. This is about creating a fair and sustainable ecosystem where creativity can thrive and innovation can flourish.
Emerging markets are the new frontier. They accounted for 60% of net subscriber additions in 2023 and are projected to drive 70% by 2030. This shift necessitates a rethinking of royalty distribution and capital allocation.

Major labels are now focusing on local talent, adapting to lower ARPU, and increasing competition. It’s not just about tapping into new markets; it’s about fostering local creativity and investing in diverse musical landscapes.
Generative AI is a double-edged sword. While initial fears have been mitigated, the industry is still in the experimental phase. Protecting music copyrights remains a formidable challenge. Yet, there’s a silver lining.

Goldman Sachs anticipates that commercial licensing deals between tech firms and rights holders will pave the way for monetizing music content used by generative AI. This is a revolutionary step toward integrating AI into the fabric of music creation and consumption, ensuring creators are rightfully rewarded.

The landscape of market share is shifting. In 2023, Sony Music saw modest gains at the expense of Warner Music, while independents and UMG held steady.

Meanwhile, Spotify regained market share, and YouTube continued its global ascent, often at the expense of local streaming services. These shifts aren’t merely statistics; they’re indicators of an evolving industry where adaptability and innovation are paramount.
The Goldman Sachs report is more than just a set of findings—it’s a roadmap for the future.
The Goldman Sachs report outlines the potential for improved monetization, the necessity of modernizing payout models, the growth driven by emerging markets, the opportunities and challenges presented by generative AI, and the ongoing shifts in market dynamics.

As we stand at the intersection of technology and creativity, these insights provide a guiding light. The future of the music industry isn’t just about more; it’s about better. It’s about creating experiences that resonate, that move us, and that connect us in ways we’ve never imagined.

The music industry is not just playing a vibrant tune; it’s composing a symphony for the ages.
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