Goldman Sachs Predicts 90% Music Industry Revenue Growth by 2035

Goldman Sachs has recently published a report expressing optimism about the music industry's growth prospects. The report forecasts that the industry's total revenue will increase from 1050 billion dollars in 2024 to nearly 2000 billion dollars by 2035. This growth is anticipated to span across three major sectors: recorded music, music publishing, and live performances.

The report provides an in-depth analysis of the subscription economy within the music industry, predicting that streaming subscription fees are set to enter a phase of regular increases. Despite a slight downward adjustment in the growth expectations for paid streaming revenue in 2025 and 2026, the long-term outlook for the streaming industry remains positive. This optimism is driven by the significant growth potential in emerging markets, where 60% of new streaming subscribers in 2024 are expected to come from these regions. However, the penetration rate of streaming services in these markets is currently only 8%, indicating a vast untapped user base.

The analysis also focuses on the adjustment of subscription prices in mature markets, comparing the differences between music streaming and video streaming services. Currently, the pricing level of music streaming services lags behind that of video-on-demand streaming services. Over the past decade, the monthly subscription price for video streaming services in the United States has increased by approximately 15% every two years, while music streaming prices have remained relatively stagnant.

However, Goldman Sachs believes that this situation is about to change. The report notes that there is growing confidence within the industry that streaming services will undergo price increases every 12 to 24 months. This shift is expected to drive the growth of the music industry, making it an attractive sector for investors. The industry's resilience and adaptability in the face of technological changes have positioned it well for future growth, with new opportunities likely to emerge as the industry continues to evolve.