The Growing Threat of AI in the Music Industry: Sales Remain Strong
Music streaming revenue in Hungary saw a significant increase last year, surpassing 2.6 billion forints (6.5 million euros). Globally, the total commercial revenue reached $29.6 billion in 2024, marking a 4.8% rise from the previous year.
The IFPI (International Federation of the Phonographic Industry) recently released its annual report, the Global Music Report, which included the 2024 statistics on physical and digital sales of the sound recording market. In Hungary, the domestic data was compiled by Mahasz (Hungarian Recording Industry Association).
The domestic sound recording industry in Hungary achieved revenue close to 12.2 billion forints (30 million euros) last year, showcasing an upward trend for the eleventh consecutive year. The revenue from music streaming in the country surged by over 2.6 billion forints (6.5 million euros), contributing to the total digital turnover that rose from 7.5 billion forints (18.7 million euros) in 2023 to 10.2 billion forints (25.5 million euros), reflecting a 35.3% increase.
Notably, the revenue generated by music streaming alone exceeded 10 billion forints (25 million euros) in 2024. Subscription audio streaming accounted for nearly 6.8 billion forints (17 million euros), advertising-based audio streaming for 761 million forints (1.9 million euros), and video streaming for 2.5 billion forints (6.2 million euros).
The digital revenue from Hungarian music also saw a rise, with approximately 3.5 billion forints (8.7 million euros) of the total digital music turnover attributed to digital sales of the domestic repertoire, primarily through streaming services.
Despite a decline in demand for CDs, the sale of vinyl records experienced a 12% increase in volume last year, with 269 thousand pieces sold, generating a corresponding rise in revenue. In total, 670 thousand physical audio carriers were sold in Hungary, amounting to 2 billion forints (5 million euros).
The IFPI’s Global Music Report highlighted the continuous growth in global recorded music revenues, which have increased for the tenth consecutive year. The report emphasized the pivotal role of subscription streaming, which expanded by 9.5% worldwide, accompanied by a 10.6% growth in subscription account users, reaching 752 million.
Victoria Oakley, the chief executive of IFPI, addressed the growing utilization of artificial intelligence in the music industry, emphasizing the need to safeguard artistic integrity and creativity. She called upon decision-makers to leverage AI to enhance human creativity rather than replace it.
Overall, the music industry in Hungary and globally continues to evolve, with streaming services playing a significant role in driving revenue growth and reshaping the music consumption landscape.
