Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has grown at a CAGR of 4.7 % over the past five years, to reach an estimated $13.8bn in 2025.
Trends and Insights
Key economic trends drive industry growth
- Album sales, particularly vinyl, have experienced a notable resurgence, with vinyl reaching its highest sales since 1984 and accounting for nearly three-quarters of physical format revenue in 2024. Returned growth in physical album sales provides major labels with diversified revenue streams and helps offset the plateauing of digital downloads. The continued popularity of physical formats, especially among collectors and superfans, strengthens the overall revenue base for major labels
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
Album sales will return to growth
- While album sales have consistently fallen over the past decade, major labels will benefit from growing sales of physical albums, restoring some of the industry's most high-margin revenue. Contrary to early fears, streaming has not entirely cannibalized physical music sales. Instead, streaming has complemented physical sales by introducing music to new audiences and encouraging fans to explore artists' entire discographies, including their back catalog available on physical formats. Still, album sales are past their prime and major labels won't be able to rely on them for consistent revenue.
Biggest companies in the Major Label Music Production in the US
| Company | Market Share (%)
2025 | Revenue ($m)
2025 | Profit ($m)
2025 | Profit Margin (%)
2025 |
|---|---|---|---|---|
Warner Music Group Inc. | 5,106.4 | 338.0 | 6.6 | |
Universal Music Group N.V. | 4,379.5 | 722.8 | 16.5 | |
Sony Music Entertainment Inc. | 2,146.4 | 187.0 | 8.7 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Physical sales, Digital downloads and Paid subscription streaming. Physical sales is the largest segment of the Major Label Music Production in the US.
Trends and Insights
Streaming music services have taken over
- Streaming services like Spotify and Apple Music have met the consumer demand for a varied music library and rapidly found success with younger audiences. Paid and ad-supported subscriptions have fully eclipsed all other revenue channels because they encourage casual listening, affordability and ease of use. Streams from listeners with paid subscriptions are a much higher percentage of revenue, as it takes nearly five times as many streams to generate a dollar on an ad-supported subscription to Spotify.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Record labels are responsible for finding musical talent, recording their work and selling it to retail outlets. The ability to oversee distribution of physical media and negotiate comprehensive publishing deals separates major labels from smaller independent labels. Major labels also commonly have deeper and broader talent rosters.
What's included in this industry?
Products and services covered in the Major Label Music Production industry in the United States include Negotiating recording contracts with artists, Purchasing the distribution and publishing rights to master recordings, Producing master recordings and Releasing, promoting and distributing sound recordings.Companies
Companies covered in the Major Label Music Production industry in the United States include Warner Music Group Inc., Universal Music Group N.V. and Sony Music Entertainment Inc.Purchase this report to view all 3 major companies in this industry.
Related Terms
Related terms covered in the Major Label Music Production industry in the United States include peer-to-peer, label and 360 deal.Industry Code
NAICS 512230 - Major Label Music Production in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Streaming remains the music industry's top revenue driver, with paid subscriptions and ad-supported models fueling major labels' growth. As streaming platforms evolve, royalt...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Streaming music services have overtaken all other revenue channels in the industry, driven by their convenience and vast music libraries. Major labels have adapted quickly, u...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2025
- Product innovation level
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Los Angeles dominates the US music industry by attracting top talent and supporting infrastructure. The city’s vibrant ecosystem, from legendary studios to major festivals, e...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2025
Tables
- Number and share of establishments in each state in 2025
- Number and share of revenue each state accounts for in 2025
- Number and share of wages each state accounts for in 2025
- Number and share of employees in each state in 2025
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The Big Three, Sony, Universal and Warner, dominate the global music industry, controlling over three-quarters of the market. Their vast resources and influence let them sign...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2020-2025
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The Big Three are securing legacy catalogs. UMG recently acquired Neil Diamond's entire discography, WMG now owns David Bowie's songbook, and SME bought Bob Dylan's portfolio...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2021 through 2025
- Major companies in the industry, including market share, revenue, profit and profit margin in 2025
- Overview of Warner Music Group Inc.'s performance by revenue, market share and profit margin from 2019 through 2025
- Overview of Universal Music Group N.V.'s performance by revenue, market share and profit margin from 2019 through 2025
- Overview of Sony Music Entertainment Inc.'s performance by revenue, market share and profit margin from 2019 through 2025
Detailed analysis
- Description and key data for Warner Music Group Inc., and factors influencing its performance in the industry
- Description and key data for Universal Music Group N.V., and factors influencing its performance in the industry
- Description and key data for Sony Music Entertainment Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Copyright law gives major record labels control over master recordings and enforces strict use of music. Labels must secure rights and vigilantly monitor for infringement, ma...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2015-2030)
- Assistance historical data and forecast (2015-2030)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Wages for skilled music professionals are rising rapidly as major labels compete for elite talent. Labels are building larger teams and offering generous pay packages and inc...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Industry Multiples (2018-2023)
- Industry Tax Structure (2018-2023)
- Income Statement (2018-2023)
- Balance Sheet (2018-2023)
- Liquidity Ratios (2018-2023)
- Coverage Ratios (2018-2023)
- Leverage Ratios (2018-2023)
- Operating Ratios (2018-2023)
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Major Label Music Production industry in the United States in 2025?
The market size of the Major Label Music Production industry in the United States is $13.8bn in 2025.
How many businesses are there in the Major Label Music Production industry in the United States in 2025?
There are 820 businesses in the Major Label Music Production industry in the United States, which has grown at a CAGR of 11.2 % between 2020 and 2025.
How may import tariffs affect the Major Label Music Production industry in the United States?
The Major Label Music Production industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Major Label Music Production industry in the United States?
The Major Label Music Production industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Major Label Music Production industry in the United States grown or declined over the past 5 years?
The market size of the Major Label Music Production industry in the United States has been growing at a CAGR of 4.7 % between 2020 and 2025.
What is the forecast growth of the Major Label Music Production industry in the United States over the next 5 years?
Over the next five years, the Major Label Music Production industry in the United States is expected to grow.
What are the biggest companies in the Major Label Music Production industry in the United States?
The biggest companies operating in the Major Label Music Production industry in the United States are Warner Music Group Inc., Universal Music Group N.V. and Sony Music Entertainment Inc.
What does the Major Label Music Production industry in the United States include?
Negotiating recording contracts with artists and Purchasing the distribution and publishing rights to master recordings are part of the Major Label Music Production industry in the United States.
Which companies have the highest market share in the Major Label Music Production industry in the United States?
The company holding the most market share in the Major Label Music Production industry in the United States is Warner Music Group Inc..
How competitive is the Major Label Music Production industry in the United States?
The level of competition is high and increasing in the Major Label Music Production industry in the United States.
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Competitors
Complementors
View all industries in United States
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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