Music Composition and Production: Industry Report

Summary

Recorded music remains a growing market. Global wholesale recorded music revenue reached US$31.7 billion in the latest available data, the eleventh consecutive year of growth ¹. Streaming drives most of that growth and accounts for 69.6% of global recorded music revenue ³. Independent artists and labels received half of the royalties Spotify paid ⁴, which matters for composers and producers who release their own work. Survey data on AI use in production varies widely: assistive tools are common, while fully generative tools are used by a small minority ⁵⁶. The main risks are low per-stream payouts, conflicting vendor survey results, and the absence of verified data on production budgets, fees and employment. The outlook points toward continued concentration of value in subscription streaming and licensing, and toward AI use that centers on assistive production tasks. The evidence base for these points is thin, and this report labels where it is.

Key findings

1. 1

   Streaming is the core revenue engine

   Global recorded music revenue reached US$31.7 billion, and streaming accounted for 69.6% of it, worth over US$22 billion. Downloads and other digital formats fell to 2.5% of global revenue.

   Confidence: High
2. 2

   Independent rights holders receive a large share of platform royalties

   Spotify reports that independent artists and labels accounted for half of all royalties it paid in the latest period. The figure is company-reported and not independently audited in the pack.

   Confidence: Medium
3. 3

   Assistive AI use is far more common than fully generative use

   A vendor survey of 1,734 producers found 32% use AI tools, mostly for stem separation, EQ and mastering. Only 6% use fully generative tools such as prompt-based song creation.

   Confidence: Medium
4. 4

   AI adoption estimates conflict by definition and sample

   A LANDR study of 1,200 respondents reports 87% of producers use AI-powered tools, while Tracklib reports 32% use AI tools. The gap reflects different samples and definitions, so neither figure should be read as a market-wide rate.

   Confidence: Qualitative
5. 5

   Per-stream payouts are low and not verified at platform level

   Estimated average payouts are about US$0.003 per stream on Spotify and US$0.0088 on Amazon Music, drawn from a blog calculator and distributor estimates. Platform-published rates were not found.

   Confidence: Qualitative

1Industry definition and scope

This report covers the professional market for music composition and production: writing, arranging, recording, producing and mixing music for release, licensing or client work. The value chain runs from creation and production through distribution, licensing and monetisation to audience engagement. Most verified data in the pack concerns recorded music revenue, which the industry association measures at wholesale level ¹².

Definitions conflict across sources. IFPI figures refer strictly to wholesale recorded music revenue and exclude other revenue streams ². MIDiA estimates a broader market of US$39.5 billion that includes merchandise, live and brand rights ³. This report treats the IFPI figure as the verified baseline and the MIDiA figure as an estimate on a wider scope.

The geographic scope is global, with US comparatives where the sources provide them ¹. The reporting period is the latest available data. Segments covered are streaming, performance rights and digital downloads, together with production tools and AI use among creators. The sources do not define a professional composer or producer, so this report uses the working description above.

Definitions follow each source's own scope. Where scopes differ, the report says so.

2Market size, structure and value chain

Global wholesale recorded music revenue reached US$31.7 billion, the eleventh consecutive year of growth, with 6.4% growth in the latest period ¹. Performance rights revenue reached US$2.9 billion, up 0.3%, the fifth successive year of growth, which suggests a slower-growing segment ¹. The USA, the largest single recorded music market, grew 3.3% ¹.

Streaming is the dominant segment. Paid subscription streaming was identified as the key driver of global growth ², and streaming accounted for 69.6% of global recorded music income, worth over US$22 billion ³. CISAC-affiliated societies reported a record EUR 13.97 billion collected for creators, of which EUR 12.59 billion went to music creators, as summarized by a secondary market site ¹⁰.

The value chain has five links: creation by composers and producers, production in studios or home setups, distribution through platforms and distributors, rights management through publishing, master and performance rights, and monetisation through streaming payouts, performance income and licensing. Key stakeholders include labels, independent artists and labels, streaming platforms, collective societies and tool providers.

Spotify reports paying more than US$11 billion to the music industry in the latest period, up more than 10% ⁴. The same company source estimates that Spotify accounts for roughly 30% of recorded music revenue ⁴. This is an estimate, and the pack does not reconcile it with IFPI totals. Payouts may include publishing and other rights that IFPI excludes, so the two figures should not be combined.

• Global wholesale recorded music revenue 31.7US$ billion Observed Global, Latest available data [1]
• Streaming share of global recorded music revenue 69.6percent Observed Global, Latest available data [3]
• Spotify royalties paid to the music industry 11US$ billion Observed Global, Latest available data [4]

Market values use IFPI wholesale data. Broader MIDiA and CISAC figures are reported separately and are not added to IFPI totals.

3Customers, demand and adoption

Demand comes from several groups: listeners on paid subscription services, platforms that need catalog, independent releasers, and clients who buy music for sync and brand work. Global paid music subscription users reached 837 million ². This points to large listener demand, but it does not show how much of that demand reaches composers or producers directly.

Producers' own demand for tools is measurable in part. In a vendor survey of 1,734 producers, 32% said they use AI tools, mainly for assistive tasks such as stem separation, EQ and mastering ⁵. The same survey found that 83% of producers support mandatory disclosure of AI use ⁵. The survey is vendor-commissioned and reflects stated attitudes, not verified purchasing.

Rights holders are divided on generative AI. MIDiA reports that majors are pursuing responsible generative AI licensing, while many independent artists are firmly against any generative AI use ⁷. These positions shape what clients and audiences are likely to accept, but the pack includes no verified client purchasing criteria.

Barriers and purchasing criteria are not well documented in the pack. Production budgets, production cycle lengths and studio versus freelance fee splits are not available from verified sources. Accessibility of production tools and audience expectations for accessibility are also not covered by the sources, so this report makes no claim on them.

• Paid music subscription users 837million accounts Observed Global, Latest available data [2]

Survey claims are attributed to their commissioning organization and are not generalized beyond their samples.

4Competitive landscape and key players

Three provider types compete for the creator market: streaming platforms, rights and distribution intermediaries, and AI tool providers. Streaming platforms such as Spotify, Amazon Music and YouTube set payout terms for recorded music ⁴⁹. Spotify is the largest of these in the pack, with payouts of more than US$11 billion ⁴. Platform payouts are a company-reported figure and the pack provides no independent market share data beyond the company estimate.

Independent creators compete with larger firms for the same royalty pools. Spotify reports that independent artists and labels accounted for half of its royalties ⁴. The pack does not provide market concentration measures such as share held by the largest labels, so concentration claims cannot be verified.

AI tool providers present survey results that favor their own products. LANDR reported that 87% of producers use AI-powered tools in a study of 1,200 respondents ⁶. The study is vendor-commissioned, so its claims should be read as marketing evidence. Suno, an AI music app, is used regularly by 8% of creators in a MIDiA survey, and 45% of creators used no AI music apps in the past year ⁷.

Business models differ. Platforms earn subscription and advertising revenue and pay royalties from pools. Distributors and rights intermediaries earn commissions on releases. AI tool providers sell software or access. Comparing their economics is limited by the lack of verified revenue data for tools and intermediaries.

Vendor and company claims are attributed to the organization that made them.

5Technology, operations and workforce

Professional use of AI is concentrated in production and post-production. A 1,100-creator music survey cited in an arXiv preprint found that 58% of professional producers used AI for audio restoration, 38% for mixing assistance and 33.9% for automated mastering ⁸. The preprint notes that professional musicians use AI mainly at the production and post-production layers rather than in finished-track generators ⁸. The survey period and geography are not stated in the source, which limits how far the figures can be cited.

Survey results differ by definition, which makes direct comparison difficult. The table below sets out the main figures and their caveats.

Productivity effects and workforce data are not available. The pack contains no verified figures on freelance employment counts, skills demand, talent supply or production times. This report therefore cannot quantify productivity change or workforce shifts.

The table reports results as published. Differences reflect samples and definitions, not measured change over time.

6Regulation, standards, risk and sustainability

The pack does not identify a jurisdiction with binding rules on AI disclosure, copyright or music production. Binding requirements cannot be confirmed from the sources. Mandatory disclosure of AI use appears only as a survey response, with 83% of surveyed producers supporting it ⁵. This is an expressed preference, not a rule, and no proposal or regulator is cited.

Rights management is supported by collective societies. CISAC-affiliated societies collected record sums for creators ¹⁰, and performance rights revenue grew in the latest period ¹. The pack does not include specific licensing terms or deal values. Generative AI licensing deal values and terms were not verified from primary sources, so this report does not describe them.

Industry positions on responsible AI use are voluntary. Majors are pursuing responsible generative AI licensing, while many independent artists oppose any generative use ⁷. These are industry positions and voluntary practices, not binding standards.

Privacy, safety, environmental and social factors are not covered by verified data in the pack. The report makes no claims about them.

Operational risks come mainly from data quality. Per-stream rates come from blogs and distributor estimates that differ between sources ⁹. Vendor surveys have commercial interests ⁵⁶. A preprint survey has no identified author, period or geography ⁸. Readers should weigh these figures accordingly.

Binding rules, proposals and voluntary guidance are separated. This is not legal advice.

7Challenges, opportunities and case examples

The main constraint for independent creators is low per-stream income. Estimated average payouts are about US$0.003 per stream on Spotify, US$0.0088 on Amazon Music and US$0.00087 on YouTube ⁹. These rates come from a royalty calculator and distributor estimates. Seven of nine rates derive from one report based on independent artist royalty statements ⁹, but no authoritative platform-published rate was found.

Opportunities follow from the growth of streaming and the share of royalties going to independents. Independent artists and labels received half of Spotify's royalties ⁴, and streaming provides most of recorded music revenue growth ²³. Creators who build catalog and release consistently may benefit, though the pack provides no data on how many do.

Case example one: Spotify reports more than US$11 billion paid out and an independent share of 50% ⁴. Its business model depends on royalty pools shared among rights holders, so independent creators' income depends on catalog scale and listening share.

Case example two: LANDR reports that 87% of respondents use AI-powered tools ⁶. The company is a tool provider, so its survey supports its own market position rather than an independent measure.

Case example three: MIDiA's survey shows 8% of creators use Suno regularly, while 45% used no AI music apps in the past year ⁷. This illustrates that generative tools have a small but visible user base, and that large parts of the creator market do not use them.

Comparable examples are limited. The pack offers few named providers and no verified data on production budgets or fees, so the case examples are indicative only.

Chart values are estimates and are shown for comparison only.

8Outlook and strategic implications

In the near term, the strongest evidence supports continued growth in subscription streaming. Revenue has grown for eleven consecutive years ¹, and paid subscription users reached 837 million ². Writer's interpretation: value is likely to stay concentrated in streaming, so creators who rely on it will need to track platform terms closely.

In the medium term, assistive AI use is likely to keep growing, since it is already the most common form of use ⁵⁸. Fully generative use is currently limited ⁵⁷. Writer's interpretation: AI is more likely to change production and mastering workflows than to replace composition or production roles outright, though the pack does not test this directly.

Uncertainties are significant. Licensing deal terms for generative AI are not verified ⁷. Survey figures conflict ⁵⁶. Per-stream income estimates are not platform-verified ⁹. Writer's interpretation: the next evidence most needed is verified production budgets, fee data and employment counts.

Practical implications differ by stakeholder. Independent creators should track royalty terms and distribution options, since independent rights holders hold a large share of royalties ⁴. Studios and production businesses should watch assistive tool adoption and disclosure expectations ⁵. Platforms and rights holders should monitor licensing policies, since industry positions on generative AI are divided ⁷.

No quantitative forecast is included because the pack contains none for this market.

9Conclusion

Recorded music is a large, growing market led by streaming, with independent rights holders receiving a substantial share of platform royalties. AI use in production is common for assistive tasks and limited for fully generative tools. The most defensible takeaways are that streaming drives value, per-stream income is low and unverified, and survey evidence on AI use is inconsistent by definition.

How this was built

Sources

1. 1

   GLOBAL MUSIC REPORT: GLOBAL RECORDED MUSIC REVENUES GROW 6.4% AS RECORD COMPANIES DRIVE INNOVATION

   IFPI Industry association

   ifpi.org
2. 2

   Global recorded music revenues hit $31.7B, up 6.4% YoY; users of paid music subscriptions reach 837M

   Music Business Worldwide (reporting IFPI Global Music Report) News report

   musicbusinessworldwide.com
3. 3

   Music industry statistics: recorded music reached $31.7 billion in the latest period

   Market Intelligence Tools (compiling IFPI figures) Market research

   marketintelligencetools.com
4. 4

   From $11B in Payouts to What We're Building for Artists

   Spotify (Charlie Hellman, Head of Music) Company report

   newsroom.spotify.com
5. 5

   Music Producers and AI (as reported in MusicTech)

   Tracklib (survey reported by MusicTech) Vendor report

   musictech.com
6. 6

   New Study Reveals 87% of Producers Already Use AI Tools in Their Creative Process

   Ari's Take (reporting LANDR study) Vendor report

   aristake.com
7. 7

   The music industry remains divided on generative AI. Where will that leave us?

   MIDiA Research Market research

   midiaresearch.com
8. 8

   Dream machine, the next creative economy

   arXiv preprint (author not identified in result) Peer-reviewed

   arxiv.org
9. 9

   Streaming Royalty Calculator (Updated)

   Rhymeflux (citing Duetti Music Economics Report data and distributor estimates) Vendor report

   rhymeflux.com
10. 10

    Music Streaming Royalties Statistics: Data Points on Payouts, Per-Stream Rates, and Songwriter Income

    VoxBooster (citing CISAC and IFPI) Market research

    voxbooster.com