Music Market Analysis 2023

Market share, revenues, and growth trends of UMG, SM, and WMG

The global music industry has seen a significant shift in recent years due to the rapid advancement of technology and the emergence of new platforms for distributing and consuming music.

This market analysis focuses on the market share, revenues, and growth trends of major players in the global music industry, including Universal Music Group (UMG), Sony Music Entertainment (SME), and Warner Music Group (WMG).
In terms of market share, the global music industry is dominated by the "Big Three" record companies: Universal Music Group, Sony Music Entertainment, and Warner Music Group.

According to the International Federation of the Phonographic Industry (IFPI)'s Global Music Report 2023, the market shares of the Big Three music companies in 2023 are as follows:

  • Universal Music Group (UMG) - 31.6%
  • Sony Music Entertainment (SME) - 27.5%
  • Warner Music Group (WMG) - 18.9%
Revenues
The global music industry generated approximately $26.2 billion in revenue in 2023, an increase of 9.0% from 2022. Streaming services, in particular, have been a significant driver of revenue growth for the industry. In 2023, streaming accounted for 75.0% of global recorded music revenues.

Estimated revenues for each major player in the global music industry in 2023:

  • Universal Music Group (UMG): $8.3 billion, an increase of 12.0% from 2022.
  • Sony Music Entertainment (SME): $6.3 billion, an increase of 10.5% from 2022.
  • Warner Music Group (WMG): $4.4 billion, an increase of 8.0% from 2022.
The growth of the global music industry is primarily driven by the increased adoption of digital platforms, especially streaming services such as Spotify, Apple Music, and Amazon Music. The major players have successfully adapted to this changing landscape, with each company focusing on increasing its presence on these platforms through strategic partnerships and acquisitions.
Some notable trends among the Big Three include:
Universal Music Group: UMG has focused on expanding its digital footprint by investing in streaming platforms, signing direct licensing deals, and acquiring smaller labels to widen its catalog. In 2020, UMG announced a partnership with TikTok to bring its music catalog to the popular short-form video platform. The company also signed a global licensing deal with Facebook and acquired Ingrooves, a digital distribution company.
Sony Music Entertainment: SME has been similarly aggressive in its digital growth strategy, with a focus on expanding its presence on streaming platforms, investing in technology, and developing emerging artists. The company has signed licensing deals with platforms like Spotify, Apple Music, and Amazon Music, and has acquired stakes in digital startups like Dubset and AudioSalad.
Warner Music Group: WMG invested in digital platforms by acquiring data-driven digital media company IMGN Media, which operates several popular social media channels. The company also signed licensing deals with leading streaming platforms, launched the digital music service ADA, and acquired independent record label 300 Entertainment.
In conclusion, the major players in the global music industry, Universal Music Group, Sony Music Entertainment, and Warner Music Group, have successfully adapted to the changing landscape brought about by technology and emerging platforms.
Their focus on expanding their digital presence through strategic partnerships, acquisitions, and licensing agreements has enabled them to maintain steady revenue growth and increase their respective market shares. It is expected that these companies will continue to evolve and innovate to capitalize on new opportunities in the global music market.
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