With The GRAMMYs Just Two Months Out, The Music Industry Is Still Going Strong - What Will It Look Like In 2030?

The music industry has continued to see growth, despite a tough macro environment. A recent report by Goldman Sachs shows its continued resilience and points to a bright future through the rest of the decade. 

Revenue Growth

According to the report, the music industry will bring in a staggering $153 billion by 2030, representing a roughly 7% CAGR.

Streaming's Dominance

Many people have worried about the streaming market becoming saturated. However, this has not come to fruition with streaming continuing to grow with no end in sight. The report expects a CAGR for the subsection of the industry of 12% and an 86% market share of recorded music by 2030.

Resilience

One of the most promising takeaways from the Goldman report is the resilience the analysts see in music. The report states that – "we expect consumer spend on music to remain resilient in a higher inflation/ weaker macro environment. Our analysis shows that music remains one of the most under-monetized forms of entertainment, with spending still 40% below its historical peak, while consumption continues to grow year after year". 

A Music-Focused ETF: For those who wish to invest in the music industry at large, a thematic ETF like the MUSQ Global Music Industry ETF MUSQ provides an opportunity. MUSQ invests in a swath of companies from crucial sectors of the worldwide music industry, focusing on areas with substantial value. The fund offers exposure to the entire music ecosystem, streaming, content and distribution, live music events and ticketing, satellite and broadcast radio, equipment and technology, and artificial intelligence.

The fund has an expense ratio of .78% and $13.6 million in AUM.

MUSQ has holdings in 46 companies. The top five within the fund are:

Amazon.com, Inc AMZN, weighted at 7.57%

Apple, Inc AAPL, weighted at 7.17%

Alphabet, Inc GOOGL weighted at 6.24%

Sony Group Corporation SONY, weighted at 3.42% 

SpotifyTechnology SPOT, weighted at 2.80%.

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