Summarize this content to 2000 words in 6 paragraphs in Arabic Stay informed with free updatesSimply sign up to the Media myFT Digest — delivered directly to your inbox.Growth in global recorded music revenues more than halved last year after a pandemic-era surge in demand for tapes and CDs went into reverse, adding to a broader slowdown across the industry as it grapples with the threat from AI. Total music revenues rose 4.8 per cent to almost $30bn last year, according to IFPI, which represents the recording industry worldwide. That was down from more than 10 per cent growth in 2023, and marked the slowest growth for almost a decade. The slowdown was led by a fall in physical music revenues, which dropped 3.1 per cent to $4.8bn, compared with an unexpected 13.4 per cent jump the previous year, as consumers continued to spend on vinyl and tapes following a resurgence during the Covid-19 crisis. Vinyl still grew modestly last year, with the format now becoming a market as much for collectors as music listeners. But sales of CDs and tapes fell. Meanwhile the US — the music industry’s biggest market — weakened, recording growth of just 2.2 per cent last year.The new figures come as music industry executives grapple with fears over the impact of AI on copyright laws, with the UK government currently considering whether to allow AI companies to scrape and copy music unless companies specifically “opt out”. The proposals have triggered a backlash from artists who fear the plans risk undermining the sector. Victoria Oakley, chief executive of IFPI, said that it was “very clear that the developers of generative AI systems ‘ingesting’ copyright-protected music to train their models without authorisation from the rights holders poses a very real and present threat to human artistry”.Meanwhile Dennis Kooker, president of global digital business at Sony Music Entertainment, said: “AI technology companies are lobbying governments around the world to create exceptions and loopholes in this law. We have seen these positions laid out in the recent filings here in the UK and last week in the US.”Sony revealed this month it had taken down more than 75,000 examples of AI-generated material featuring its biggest stars, including Harry Styles, as part of its battle with fakes. In its report, IFPI said: “Music faces the increasing threat of streaming manipulation, where bad actors are stealing money that should be going to legitimate artists.”Paid subscriptions to services such as Spotify, YouTube Music and Apple Music continued to drive music revenues last year, however. Paid subscription streaming revenues rose 9.5 per cent — which when combined with advertising-supported services meant that the streaming market overall topped $20bn — while users of subscription accounts grew 10.6 per cent to 752mn globally.However, executives say that some of the larger markets are now reaching a point of comparatively high take-up, meaning that there has been slower growth in adding new subscribers. Music platforms are now also concentrating on growing average revenue per consumer, such as by raising prices and creating new tiers of “premium” services.Every region saw an increase in revenue in 2024, but the largest increases were in more emerging markets in the Middle East, Africa and Latin America.
