Growth Rate Slower Than China and Other Countries
The music industry in Europe is facing a challenge that could hinder its global competitiveness unless steps are taken to protect artists and rightsholders, says a new report from IFPI, an international labels trade body.
Despite Europe’s music sales surpassing $8 billion in 2023, making up over a quarter of global revenues and solidifying its position as the world’s second-largest region for recorded music sales after the U.S. and Canada, IFPI warns that other markets are growing more rapidly.
The report, focused on recorded music within the European Union, reveals that music sales among the 27 member states grew by 8.7% to 5.2 billion euros ($5.7 billion) last year. While this places the EU as the second-highest revenue generator after the U.S., other markets such as China, Sub-Saharan Africa, Mexico, and the Middle East are outpacing Europe in growth due to the widespread adoption of music streaming services.
Although these markets are starting from lower revenue bases compared to EU countries like France and Germany, their rapid growth signifies a warning to European music industry competitiveness. IFPI notes that some of these markets were virtually non-existent a decade ago.
The report titled “Music in the EU: A Global Opportunity” is released following European Parliament elections and ahead of the new European Commission’s introduction, which is expected soon. The EU lawmakers are tasked with enforcing legislation that impacts the music industry, such as the Digital Services Act and Digital Markets Act.
IFPI CEO Victoria Oakley emphasizes the importance of the EU in the music industry but also highlights the risk of falling behind other regions. Oakley urges policymakers to provide legal protection for music rightsholders, support ethical AI development, and create a competitive environment for the evolving music sector.
As the music industry in Europe faces challenges, IFPI suggests ways policymakers can assist creators and rightsholders, such as implementing the AI Act and upholding copyright laws to prevent the unauthorized use of music in AI training.
The report also highlights the performance of domestic acts in EU markets and the dominance of U.S. artists in global charts. While EU markets excel in promoting local talent, U.S. and Latin American artists continue to dominate the global music scene.
