Analytic Dreamz: Notorious Mass Effect - "MUSIC INDUSTRY 2025: WORLDWIDE GROWTH SLOWS TO DECADE LOW"

Episode Date: August 4, 2025

Linktree: ⁠https://linktr.ee/Analytic⁠Become A Patron Of The Notorious Mass Effect Podcast For Additional Bonus Audio And Visual Content For All Things Nme! Join Our Patreon Here: ⁠https://ow.ly/oPsc50VBOuH⁠Join Analytic Dreamz on Notorious Mass Effect for a deep dive into the German music market's slowdown in Segment 2025. Explore H1 2025's 1.4% revenue growth (€1.16B), down from 7.6% in 2024, with streaming dominating at 81.2% (€939.5M). Physical sales dropped 13.2%, with CDs (-20.1%) and vinyl (-2.6%) declining. Germany holds the #4 global spot, but China’s rapid growth threatens its rank. Analytic Dreamz unpacks BVMI insights, AI licensing debates, and analyst warnings from Midia Research and Goldman Sachs. Stay tuned for trends shaping the music industry’s future!Privacy & Opt-Out: https://redcircle.com/privacy

Now this specific segment, we are going to be diving deep into the entire music industry. As far as the halfway point, the entire music revenue grew by only 1.4%. Now you're probably thinking to yourself, isn't growth what we're wanting as far as the music industry? Well, you would definitely be correct. But as far as comparing it to the halfway point of 2024, it is down from 7.6%. So as far as an entire year, it is on track to be a decrease of 7.8% as far as compared to the full growth year of 2024. Now, of course, these are valued at retail prices, not net proceeds and of course, analytic dreams video on Spotify to see the video along with the audio.

Because this specific report right here is essentially, from the German music market. So they went through and basically gave a detailed report of the entire music industry as far as the halfway point. So when you're looking at this and when you're looking at the overall audio streaming and then compared to actual purchases, you realize that the permanent downloads, which earns artists more money is down 1.6%. So overall audio streaming is up for. from 79.3% in the halfway point of 2024 to 81.2. So when you're looking at it from a overall perspective and putting it simply for other people to let them know

how the music industry is on a decline as far as revenue, it's simply because people would rather press a button and stream music than purchase it, which is very interesting as I also cover the entire music, not music. I also cover the entire gaming industry. So when it comes to that, whenever I'm talking about Xbox and Microsoft claiming to not make any, to not be making any money off of the gaming sector, whether it's Xbox or the developers, which is why they're laying off so many people, you know, that's what they say, but the stock

prices are up. Make that make sense. So anyways, when it comes to the streaming and the overall revenue, digital formats had 87.5% of the entire revenue. And of course, as video streaming and other is 14 is 4.8% of the revenue. So ultimately I want to get into the physical sales and how it's on the decline and while that's the main reason for a lot of this music industry shenanigans going on as far as people not seeming to be able to not tour like they have to tour to make money. So now you see a lot of acts coming out of the woodworks to tour. You see a lot of rappers and singers streaming and trying to get into the content space because now with their overall industry on a decline as far as people

less willing to actual buy the physical version they're rather press stream on your album or single then purchase it as far as a physical coffee so looking at the decline as far as physical specifically it is down 13.2 percent because if you look at the physical formats it accounts for 12.5 percent of revenue and then it is down 2.2% as far as the entire tracking of the year is considered. And then you have total physical revenue, which is 22.4 million. And then that is also a 26.3 million drop. CD sales as far as revenue was 85.6 million and that is a 20% drop as far as compared to last year so now putting these things in perspective specifically as far as streaming as far as physical

copies you can see how one music industry is being cheap in by the streaming platforms but what is what have what have artists been saying about that and gaming and gaming publishers or developers are starting to catch up on what art has been going through as far as in the music industry the Xbox game pass i will say to this day is the greatest bang for your buck if you're or a gamer wanting to play multiple games for one subscription price. But of course, for the people developing all of those games that's on the game pass, guess what? They are walking away with less money because now, instead of purchasing that game for $70,

you get to play three or four, five games all for a $20 a month subscription. So you can see how the gaming industry is just now catching up to how crazy the model is that used to, you have to purchase the full thing and even play it. Now, you can hop into a subscription model and sometimes it's a free trial for Xbox Game Pass and get to play entire AAA games day one,

like Expedition 33. What's other games on there? Doom the Dark Ages, I think that's the title of it. And then you have the latest game Wu Chang, Wu Chang Fallen Feathers, which I'm currently playing. And then you have,

call this football you had a whole trial a 10 hour trial so all of that you get for the game past subscription and you come to realize like hold on now we're not going to make the same amount of money if we keep giving away this content for essentially free price because it's on this subscription model that's exactly what the music industry has been going through for quite some time so that being said diving deeper into the global market reaction Germany did say that as far as global music market, China is just 72.7 million behind with double the growth rate. And you're probably wondering to yourself, how's the music industry down? But China is doubling in growth rate.

Well, ladies and gentlemen, you must have not been following the podcast because of course I've deep dive into K-pop demon hunters like there's no tomorrow. And of course, as you can see right here, K-pop demon hunters is essentially one of the greatest projects that came out of China more specifically when you look at the the charts it is the third most played project in the world as you can see right here analytic dreams video on Spotify to see the video along with the audio but as far as k-pop demon hunter's soundtrack it is july 29th and essentially when this project came out it was see, June 20th.

So more than a month after it was its initial release, it's still holding the top three spot as far as the third most play project in the world. So now when you go back to also having not only BTS, but Black Pink and a lot of other conglomerants out there, like big hit entertainment, that's just printing money hand over fist

because now people are starting to get more client to the K-pop field, which, you know, as far as the podcast, that's why I say I cover the entire music industry, because I've been talking about the immense impact of BTS, the immense impact of Black Pink, or more specifically, Jenny from Black Pink, which if you don't know, won the show, the HBO show, The Idol, I think it was called The Idol. Let me see. The Idol, the weekend, HBO. Yeah, it's called The Idol. So season one of the Idol, it won best choreography at some type of Emmy, right? The reason for that is because Jenny from Black Pink had a specific scene in that show

that was just straight up phenomenal. Now, as far as the entire show, let's just say it was far from phenomenal. But you know, the weekend, that man able to say is going to keep trying to prove that he is the next or the second coming to Will Smith, right? So anyways, getting back to music. So when it comes to China, they're doing great, right? Double the growth rate. And they said that China could surpass Germany in 2020.

and challenge the UK and challenge the UK for the third biggest market in the music industry. So now when you're looking at the Latin community, when you're looking at K-pop, when you're looking at Bollywood, all of these different genres because of the evolution of technology, people are more aware of. So to see the music industry on the decline, but to see China doubling its growth rate is very interesting, especially in the landscape of today, when people would rather stream your song or album rather than purchase it. And then you come into the overall CEO speaking up because they said to themselves, if we keep losing money, I'm going to lose my job. You know what mean? They probably don't want to do that. They'll probably just lay off 7,000 more employers like

Microsoft did. Oh, my fault. Hold on my fault. Shepard, just look at the state of gaming, like, what is going on? Sometimes I think to myself, what is going on in the gaming and music industry, because as of right now, they are both struggling with the same monstrosity, which is the depreciation and the overall lowering and value as far as cheapening the product. If you're going to cheapen the product, you can't be mad at when the entire music industry is not bringing in as much money as the last year, right? Because now people are looking at the overall product and saying to themselves, I know that's not my favorite artist putting out a country album.

I know that's not my favorite artist trying to pander towards the TikTok crowd. I know that is not my favorite artist, 60, 70 years old trying to beef with a 30 year old. But then you know what I'm saying? I was like, damn, look at the state of hip hop. Like, what's going on? So some of these artists are going out bad, are going outside, or going out all type of as far as because of less revenue coming in the door as far as their specific market but as a totality everybody can kind of feel like hey at least we all lose the money together right because total revenue like i said is down as far as compared to uh 2024 because if you look at it halfway into 2025 we have approximately 1.16 to 1.36 billion as far as as

generated in um 2025 and then of course when you look at uh 2024 is is down 7.6 percent because 24 had a lot well as far as seven per i'm not mathematician but you know it's down 7.6 percent from 24 so mathematicians y'all do the math on that one but anyways because that's you know a billion seven point three percent you know you got some you got some equations you got some equations to do but anyways um getting into the audio streaming it acquired 1.1 billion dollars in the halfway point of this year and of course it's down 12.7 percent compared to 2024 streaming market value it has 81.2 percent and of course that's up from 79.3 percent from last year and then you have permanent download revenue which this is the big one in my opinion

This is approximately 16.2 to 19 million as far as a halfway point of 2025, but it is down to 1.4% from 1.6% as far as compared to the halfway point of 2024. And then you have video slash other digital revenue, which is 55.5 million to 65.2 because these are all estimates, but this is from the German music market. Apparently they're pretty reputable. So that's why I wanted to cover it like I am as far as, deep going deep into what, um, what they gave us. Cause I was wanting to see. Yeah. Uh, what is that? I don't even know what that is.

Okay. I was wanting to show y'all the picture again right quick. So y'all can see that this is coming actually from, uh, a new source that's used to giving us data like this. It's not just some I made it up type of metric, right? So then you have physical sales revenue, um, 12.5. which is down 2.2% compared to 2024. You have CD sales, CD sales, which is down 20% compared to 2024, making $72.9 million through 85.6 million. That's an estimate, of course. And then vinyl

sales, you have $64.8 million to $76.1 million. And that is down 2.6% as far as compared to the halfway point of 2024. for and then to round it off total physical revenue decline is 13.2% overall. But then you know what I'm saying? I was like, damn look at the state of hip hop like what's going on? Sometimes I look at the state of the music industry and I'm like at some point we got to get it together because of course I think the entertainment model as of right now is being cheap is cheapening the overall experience. So that way whenever these revenue

decreases come back. It shouldn't be a surprise. Y'all are cheapening the product, letting people listen to the entire bodies of work, entire discographies for a subscription price, which to me, I think that's phenomenal. As a consumer, I'm not going to lie. Us music fans have been eating for quite some time because guess what? If the game has existed 10, 20 years ago, the whole entire gaming industry will look different. But of course, they're quickly finding out. It just happened as far as game pass really having notable triple a titles but it just happened that developers are coming out saying that the xbox game pass is not a sustainable model where we heard that before as far as a subscription model every artist named mama have came out to tell

us that instead of paying i forget how much albums are because i don't even have a cd player but let's just say an album is fifteen dollars right and now you can go to spotify and get a seventeen dollar subscription and you can listen to everything in that store So instead of going to that store paying your hard-earned money as far as that $15 for one project, so meaning you have to make sure you're going to like it, now you could just go to Spotify, to Apple Music, pay that subscription price, and now you have the whole store. So that is why the overall product is cheapen. And that's why the revenue, as far as total physical revenue decline, is at 13.2% as far as

the halfway point of 2025 compared to the halfway point of 2025 compared to the halfway point of 2024. So with that being said, I didn't want to beat a dead horse. I definitely wanted to do a segment on this because of course, me calling myself analytic dreams, I would be, well, it's a PG podcast. So you already know what I was about to say. If somebody else was able to break this down before I did, as far as letting y'all know that the music industry as a whole is on a decline, but technically the streaming is on the rise. So with that being said, click my link to you in my bio. Let me know one of my social medias, what do you think is the solution to increasing the music industry revenue? And do you believe as a consumer, they should take the hit so that you can stream on platforms

rather than purchasing full albums or singles?