Music industry funding reached almost $5 billion in 2024
Here are the trends, challenges and opportunities that could shape the music industry in 2025.
Music industry funding in 2024: A year of resilience and big investments
Despite a slowdown in the latter part of 2024, the music industry achieved nearly $4.64 billion in total funding- slightly surpassing 2023’s figures. This growth was heavily influenced by major investments in catalog acquisitions, with some of the year’s most significant deals including:
- Hipgnosis securing $1.5 billion through asset-backed securitisation (ABS).
- Concord raising $850 million via ABS.
- Iconic Artists Group investing $1 billion in catalog acquisition, including Rod Stewart’s intellectual property.
Catalog investments provided a boost to the industry, but challenges loom. With fewer iconic catalogs available and rising inflation impacting returns, there could be a potential slowdown in this funding stream for 2025.
Superfans: Driving revenue and funding?
Superfans emerged as a dominant theme in 2024, accounting for over 11% of funding raised. Startups like Mellomanic, Tune.fm, FanCircles, Hangout, and Trax led the charge in monetising devoted fan bases through innovative platforms and services.
This momentum is expected to continue as the industry shifts to Streaming 2.0, a new model designed to deepen fan engagement and unlock additional revenue. Notable developments include:
- Universal Music and Amazon Music partnering to enhance Weverse, a superfan-focused app.
- Warner Music continuing to develop its superfan offerings, initially slated for a 2024 launch.
- Spotify announced a “Deluxe” tier aimed at superfans, expected to be soon forthcoming.
As artists, labels, and streaming platforms refine their superfan strategies, this segment is poised for sustained growth in 2025, well into 2026.
Live and ticketing disruption
The live and ticketing sector also attracted significant funding in 2024. Startups in this sector accounted for over 13% of core music industry funding by volume last year.
New players are disrupting traditional models with innovative and niche offerings, spurring on funding:
- Posh is carving out a niche with small-event focused platforms.
- Celebratix is leveraging blockchain technology to revolutionise smart ticketing.
While these startups show promise, their ability to compete with industry giants remains uncertain. Additionally, new legal restrictions, particularly in the UK, may impact growth trajectories.
What will 2025 bring?
Whether funding remains consistent in 2025 remains mixed. Superfan-focused ventures and live-event innovations offer significant potential, but challenges such as inflation, consumer spending constraints, and legal hurdles could temper growth.
As the year unfolds, opportunities to capitalise on emerging trends will likely define the next phase of the industry evolution.