How the Music Industry Is Booming in 2025

The Rise of the Modern Music Industry

Music streaming trends 2025 indicate a tremendous increase, with personalized AI-curated playlists dominating user engagement. The use of AI in music production has changed how musicians compose, mix, and release songs, allowing for greater originality across genres.

• Acumen Research and Consulting estimates that the worldwide Music Streaming Market would be valued USD 100,734 million by 2030.

Simultaneously, music marketing trends 2025 emphasize short-form video, influencer collaborations, and data-driven audience targeting. Meanwhile, music subscription growth continues to accelerate worldwide, particularly in emerging areas with low-cost mobile data connectivity. As the music industry innovation, creators are using blockchain and NFTs to manage rights and engage fans. The global music market expansion in Asia and Africa is fueling a wide range of music styles and cross-border collaboration.

What's driving the growth of Music Industry?

The music industry is booming as the demand for streaming services grows, resulting in a constant increase in global music market expansion. Music subscription growth has been a crucial factor, with Spotify, Apple Music, and YouTube Music dominating the market. As more listeners prefer subscriptions to physical media, music streaming trends have evolved to provide personalized and high-quality experiences.

AI in music production is altering the creative process by enabling musicians to explore and create. Furthermore, the growing popularity of virtual reality concerts creates new revenue streams for artists and permanently changes the live music experience.

• As reported by Acumen Research and Consulting, the Virtual Reality Market is anticipated to grow to $56.2 billion by 2027.

Streaming and Subscriptions

Music subscription growth has been spectacular, with more consumers choosing premium subscriptions, boosting music industry revenue. As music streaming platforms advance, AI in music production makes it easier for creators to create high-quality music, increasing the appeal of subscription-based services.

• According to the International Federation of the Phonographic Industry (IFPI), paid music subscription revenue will grow by 9.5% to $15.15 billion in 2024, with 752 million users (a 10.6% increase). Streaming accounted for 69% of global music income, which totaled $29.6 billion. A significant portion of this expansion was driven by emerging markets.

As the number of smartphone and internet users increases, more people are turning to music streaming apps and paying for premium services. This increased smartphone and internet penetration is a major contributor to the increase in music subscriptions. As a result, the music industry is growing, aided by internet accessibility and shifting customer preferences. With more people adopting online platforms, the music industry is growing both in terms of user base and revenue possibilities. Looking ahead, the trend shows no indications of slowing, indicating that the music industry is growing through 2025 and beyond.

• In the first half of 2024, India's smartphone market shipped 69 million devices, representing a 7.2% YoY increase. In the second quarter of CY24, 35 million smartphones were shipped, representing a 3.2% YoY increase, according to the International Data Corporation's (IDC) Worldwide Quarterly Mobile Phone Tracker.
• The National Telecommunications and Information Administration's Internet Use Survey highlights substantial progress toward the goal of internet for All. In 2023, 13 million more people in the U.S. were using the internet compared to two years earlier. Notably, internet adoption among low-income households rose from 69% in 2021 to 73% in 2023.

Meanwhile, the emergence of virtual reality concerts is reshaping revenue models for live performances, providing audiences with an immersive and innovative way to experience music.

Tencent Music Exceeds Q1 Forecasts with Robust Subscriber Growth

• Tencent Music Entertainment Group posted a first-quarter 2025 revenue of 7.36 billion yuan ($586.1 million), marking an 8.7% year-over-year increase and surpassing analyst projections of 7.27 billion yuan. This growth was driven by a 16.6% rise in music subscription revenue, which climbed to 4.22 billion yuan, alongside an 8.3% uptick in paying users, reaching a total of 122.9 million.

The music industry is growing and Tencent Music's Super VIP membership which includes long-form audio, karaoke, and high-quality sound, has grown in popularity among consumers. Despite this, income from Tencent Music's social entertainment services, which include the karaoke app WeSing and the live concert platform Kuwo Music, fell 11.9% to 1.55 billion yuan. This reduction occurs as the corporation complies with Beijing's anti-gambling legislation, which resulted in the withdrawal of certain live-streaming capabilities.

Nonetheless, the music industry is growing, driven by changing customer preferences and increased digital material. Tencent Music intends to capitalize on this trend as the music industry is growing by entering advanced talks to buy Ximalaya, China's largest online audio platform. This strategic initiative underscores Tencent's commitment to remaining competitive in an music industry is growing with rising demand for diverse audio material. Tencent's increasing portfolio is poised to solidify its position as a market leader as the music industry is growing on several digital fronts.

The Future: Music Streaming Trends 2025

Music streaming trends in 2025 are projected to focus around further AI in music production and the continued expansion of global music marketplaces. Virtual reality concerts will play an increasingly important role in providing people with a futuristic way to experience live music. Music subscription growth is expected to accelerate as customers grow accustomed to paying for on-demand, ad-free material.

Music marketing trends will also evolve, with a focus on targeted advertising powered by AI data. As the music industry is growing, these developments allow for more targeted and successful promotional efforts. With such innovations, the music industry is growing both in terms of audience reach and technology integration. Finally, these trends demonstrate how the music industry is growing through innovation and new revenue streams.