A look at the music industry in 2023

A review of the Luminate end-year music report

The Luminate statistical platform's report on the global music industry in 2023 has been published. Luminate, as a leading company in providing media consumption data and market analyses, plays an important role in the music industry. By analyzing and examining data in various areas including online music streaming, consumer behavior, music product sales, and digital music markets, this company provides its clients—including music streaming companies, artists, producers, publishers, and brands—with data analysis tools and precise reports to better understand market trends and audience behavior. Below we review this report.

An overview of changes in music in 2023

2023 saw significant changes and advances in music. Various studies show who streams what kind of music, and when and where. In what follows we analyze the data and reports related to music in this year.

Global music streaming statistics

In 2022, total streams worldwide were 5.3 trillion, which in 2023, with a 33.7 percent increase, reached 7.1 trillion. Also, total audio streams rose from 3.4 trillion in 2022, with a 22.3 percent increase, to 4.1 trillion in 2023.

The state of music consumption in the United States

Music industry index data in the United States show that album consumption in this country, including on-demand streams and album-equivalent units, increased 12.6 percent in 2023 compared with 2022, from 974.9 million to 1.1 billion. Digital music consumption, including digital albums and streaming, also increased 12.9 percent, from 0.9 billion to 1.0 billion. Song streams, both audio and video, grew 14.6 percent from 1.3 trillion to 1.5 trillion.

Audio streams in 2023 experienced a 12.7 percent increase, rising from 1.1 trillion to 1.2 trillion. Combined physical and digital album sales also grew 5.2 percent, from 100.1 million to 105.3 million. Meanwhile, digital album sales fell 9.3 percent from 20.2 million to 18.3 million, but physical album sales, including vinyl, CD, and cassette, increased 8.9 percent from 79.9 million to 87.0 million.

The rising share of women in United States music

In an examination of the share of streams among top United States artists, women's share among the top 500 artists in 2023 increased by 4.2 percent relative to 2022. This growth indicates an increased presence of women in music and audience reception of their work.

Developments in country music

In country music, which has deep roots in American history and culture and was formed from a blend of various music styles such as folk, blues, gospel, and Western music, the share of streams of women's work increased by 2.6 percent from 2019 to 2023. However, this share has not changed much compared with 2022. Artists such as Morgan Wallen, Zach Bryan, and Luke Combs, with their performances in 2023, captured a major share of this market.

Unpopular oldies

An examination of the top 500 thousand songs in the United States in 2023 shows that 48.3 percent of on-demand audio streams belong to songs released in the past five years. This figure indicates audiences' interest in new works and the appeal of modern music. The share of older music, especially from before the 2000s, is considerably smaller.

Global song streaming statistics

In 2023, about 436 thousand songs were streamed more than one million times worldwide, an increase compared with 373.5 thousand songs in 2022. However, 45.6 million songs had no streams at all, indicating the very large number of works that have not been well received.

Audience profile of meditation and focus music

Reports indicate that three-fifths of listeners of music related to meditation, sleep, and focus are women. Also, 20 percent of these listeners are in the 45-54 age range and 19 percent are between 25-34. These people listen to classical and jazz music twice as much as others.

How Gen Z spends on music

Average monthly spending on music streaming increased in 2023, but even so, Gen Z spends on average 11 percent less than in previous years on music streaming services. Direct-to-fan music sales grew substantially this year and, with a 38.6 percent increase, reached 11.8 million, indicating a greater audience inclination to buy directly and support artists.

The role of superfans in the music industry

Passionate music fans account for the largest share of support for artistic works. These people spend 68 percent more than ordinary listeners on music each month and spend 126 percent more on purchasing artists' merchandise. This group of listeners plays an important role in promoting and growing new artists. Superfans spend 76 percent more than the average listener on purchasing physical music. They like to express themselves through their fandom and enjoy participating in a community that a particular fandom provides. The three main characteristics of these superfans are social signals, identity expression, and presence in a community of similar music fans.

K-Pop and J-Pop fans: the most passionate audiences

Fans of K-Pop and J-Pop music are among the most passionate audiences. Gen Z K-Pop fans spend on average 24 dollars a month on artistic products, which is 140 percent more than ordinary listeners. Gen Z J-Pop fans also spend on average 16 dollars a month on artistic products, which is 100 percent more than ordinary listeners. 60 percent of K-Pop fans and more than 100 percent of J-Pop fans are more inclined to want artists to release more products for them to support. Also, K-Pop fans are 50 percent more likely to purchase a product for a music event they did not attend. J-Pop fans in the United States are predominantly Gen Z, a higher percentage of them identify as LGBTQ+, and a larger number of them are men.

A shift in the share of languages in global music

The share of the English language among the world's top 10 thousand songs is declining, while Hindi has risen alongside the growth of India's streaming market. The share of English fell from 67 percent in 2021 to about 55 percent in 2023, while the share of Hindi rose from 3.8 percent in 2021 to 7.8 percent in 2023.

The role of social platforms in music

EDM and LoFi listeners have a strong interest in using community-focused platforms such as Discord and Patreon. These platforms are used as a tool for connecting with and supporting artists and play an important role in direct communication between artists and fans.

Films and series play an important role in introducing and spreading music to new audiences. Reports show that 42 percent of Gen Z women discover new music through films and soundtracks.

Final word

2023 was accompanied by numerous changes and advances in music. From rising spending and direct sales to the growing popularity of virtual concerts and a stronger presence of women in music, all of these point to transformations that are steering the music industry toward a more dynamic and diverse future.

 

Source: Luminate end-year music report