Music industry calls for AI regulations as revenues continue to grow

Global recorded music revenues grew 6.4 percent and reached $31.7 billion in 2025, the 11th consecutive year of growth, according to the International Federation of the Phonographic Industry, the organization representing the recording industry worldwide.

Figures released in IFPI's Global Music Report 2026 on March 18 demonstrate that continued work and investment by record companies and their partnerships with artists around the world drive positive market growth, with every region seeing growth.

Engagement with paid streaming services is once again the key driver, with revenue from the format growing by 8.8 percent and accounting for 52.4 percent of global revenues. There are now 837 million paid streaming subscription users.

Asia saw strong growth in 2025, with a 10.9 percent increase. The region maintained its status as the largest contributor to global physical revenues, accounting for 45.1 percent in 2025. The world's second-largest market, Japan, returned to growth in 2025 with an 8.9 percent increase, while China overtook Germany to become the fourth-largest global market, with strong revenue growth of 20.1 percent, the fastest-growing market in the top 20.

Record companies are at the forefront of the next generation of AI innovation. The report details their active engagement in developing music licensing models to generate revenue opportunities for artists, aiming to build an ecosystem where AI and human artistry thrive together.

The report also notes that the music industry faces an increasing threat from streaming fraud. By artificially generating plays for manipulated or fake content, bad actors are siphoning vital revenues away from the artists and others who power the music economy. While record companies are taking robust action, they are calling for organizations at every stage of the streaming value chain to take steps to prevent, detect, and act on fraudulent activity, the report says.

Record companies are proactively working to define music's relationship with AI. They are engaging with developers who recognize and respect intellectual property rights to enhance the creative process and bring extraordinary, exciting experiences to fans.

"The goal is to make AI a force for good, not a force for harm. Our approach is based on three principles: legislate, litigate, and license. AI can unlock creativity, but when it shifts from creativity to exploitation, that's the problem," says Simon Robson, president of EMEA Recorded Music with Warner Music Group.

"Our job is to create new and growing revenue opportunities for our artists, and we do that through licensing deals for both existing business models and brand-new products. This proactive approach is what has enabled this industry to be a growth business over the last decade and a half. So, AI has tremendous potential, and we want to get it right. However, it's important to understand that protecting artists and ensuring the market isn't eroded by bad actors is also core to our role," says Dennis Kooker, president of Global Digital Business with Sony Music Entertainment.

"Great music from incredible artists, aided by record company partnerships and investment, is driving global growth — with more people than ever before paying to engage with it on streaming services worldwide," says Victoria Oakley, CEO of the IFPI, commenting on the release of the Global Music Report.

"More importantly, this growth means even greater financial returns for artists and reinvestment into an increasingly broad range of music communities worldwide."

"Music is embracing the future, demonstrated by record company partnerships with generative AI developers who respect the rights of creators. They are partners that explore how technology can be harnessed to support and enhance creativity, not replace it. We are asking policymakers to support this work by upholding the copyright laws that are the bedrock for this progress," she says.

"The entire music community must take action to tackle the threats facing our industry. Streaming fraud is theft, plain and simple. The organizations with the data, scale and leverage to prevent this fraudulent activity, including streaming services, content aggregators and distributors, must take decisive action." (source: China daily)