The global recorded music market grew by 8.6% in 2025, reaching $47.1 billion in consumer spend, according to Futuresource Consulting’s latest research. Streaming continues to dominate, accounting for 86% of total consumer spend, while physical media delivered stronger-than-expected growth, driven by sustained demand for vinyl.
“Streaming remains the industry’s growth engine, but we’re seeing a change in tides where monetization matters just as much as subscriber acquisition,” says Dave Watkins, director of consumer electronics and entertainment, Futuresource Consulting. “Services are focused on differentiating experiences, converting free users to paid subscribers, and delivering more value through AI-powered discovery, premium audio, and exclusive fan experiences.”
Paid Subscriptions Track Upward
Global paid music subscriptions reached 865 million in 2025, representing a net addition of 71.5 million subscribers year-on-year.
As subscriber penetration approaches maturity in many developed markets, services are increasingly turning to premium tiers, AI-powered personalization, pricing strategies, and emerging markets to drive revenue growth.
The report shows growth opportunities increasingly shifting toward developing regions. Latin America recorded annual revenue growth of 15%, while APAC surpassed 400 million paid subscribers. Markets such as Brazil, Mexico, China, and India are expected to play an increasingly important role in shaping the future of music consumption through the remainder of the decade.
Physical Formats Retain Appeal
Meanwhile, physical music continues to defy expectations, as consumer spend on physical formats grew 7% during 2025. Vinyl remains a key value driver, with sales increasing by 10% in retail value to $3.77 billion, supported by collector culture, exclusive editions, and strong engagement from both established fans and younger audiences.
AI has quickly emerged as one of the most transformative forces across the music ecosystem. Streaming services are increasingly implementing AI to help streamline content discovery and personalization.
Meanwhile, labels and rights holders continue to explore licensing partnerships and content management strategies. At the same time, platforms are developing new approaches to identify and manage AI-generated music, with Deezer leading the way in tagging AI content and excluding full AI tracks from their algorithms.
To learn more about Futuresource’s Global Music Industry Market Outlook, visit here.
For more information, visit www.futuresource-consulting.com.
