Music Industry 2025: Streaming Dominates, Vinyl Surges, and Global Revenue Hits New Highs
The global music market reached a new peak in 2025, with streaming services generating the bulk of revenue while vinyl sales climbed to a record‑setting $1.04 billion in the United States. The year also saw the industry’s first 5‑trillion‑stream milestone and a modest rise in overall revenue.
According to the International Federation of the Phonographic Industry’s (IFPI) Global Music Report 2025, recorded‑music revenues grew 4.8 % in 2024, reaching $29.6 billion worldwide. The report notes that subscription‑based streaming was the primary driver of this growth, while physical formats and digital downloads declined in share. In the United States, the Recording Industry Association of America (RIAA) reported that paid streaming subscriptions hit 100 million for the first time in 2024, and that vinyl sales surpassed $1 billion for the first time in a calendar year.
Luminate’s 2025 year‑end report confirms that global streams hit 5.1 trillion, a 9.6 % increase over 2024 and the highest single‑year total on record. The data also show that 99 % of all digital music streams come from the top 10 % of tracks, underscoring the concentration of listening on a small set of hits.
Digital sales continue to dominate the U.S. market. The RIAA’s 2025 revenue report states that 84 % of total U.S. music revenue in 2024 came from streaming and downloads, with streaming alone accounting for the majority of that figure. Downloads now represent only 2 % of U.S. recorded‑music revenue, a steep decline from the 43 % peak in 2012.
Physical formats have experienced a notable resurgence. Vinyl sales have risen for the nineteenth consecutive year, reaching $1.04 billion in 2025. The RIAA’s report highlights that vinyl revenue grew 9.3 % from the previous year, driven in part by high‑profile releases and the continued popularity of collectible editions.
The industry’s workforce remains robust. The RIAA’s 2024 data indicate that the U.S. music sector supports 2.5 million jobs, a figure that has remained stable over recent years. The average annual salary for industry employees was reported at $41,935 in 2018, slightly lower than the $42,333 average in 2012.
Industry trends point to continued consolidation and the influence of technology. Three major record companies—Universal Music Group, Sony Music Entertainment, and Warner Music Group—control roughly 65 % of the U.S. market. Meanwhile, the rise of artificial intelligence and changes to streaming pricing models are prompting discussions about potential shifts in royalty structures and the risk of increased piracy if access to music libraries is restricted.
In summary, 2025 marked a record year for music consumption, with streaming maintaining its dominance, vinyl achieving a milestone, and global revenue reaching new heights. The industry continues to adapt to evolving consumer habits and technological developments while sustaining a large employment base.
