Insider Monkey

10 Best Music Stocks to Buy Now

Ramish Cheema
Updated 9 min read

In This Article:

In this piece, we will take a look at the ten best music stocks to buy. For more stocks, head on over to 5 Best Music Stocks to Buy.

The music industry is made of dreams. Every day, thousands of artists look to make it big and bring in millions of dollars in royalty payments and create fan bases of thousands of people. Add to it the fact that music is also one of the oldest forms of entertainment known to humankind, with the first music made by prehistoric humans thousands of years ago. This was when members of the Ancient Chinese and the Indus Valley civilization used simple percussion instruments to create pleasant sounds.

Since then, the sector has evolved to the current day where we have countless different genres of music each suited to the listener's profile. Music has also evolved with human civilization, transforming from the classical era of the greats such as Beethoven and Mozart, to rappers such as 50 Cent and Eminem, and pop music sensations such as Taylor Swift and Katy Perry.  At the same time, the growth in technology has also provided artists with a global audience, with singers in America having followers in every continent on the globe.

Cumulatively, these factors also lead to sterling evaluations for the music industry. For instance, the global music recording industry was worth $58.2 billion in 2022 and is expected to grow through a compounded annual growth rate (CAGR) of 9.9% between then and 2030 to sit at an estimated $123 billion by the end of 2030 according to research from Global Industry Analysts. Geographically speaking, America accounted for more than a quarter of the market last year, as it commanded $15.9 billion of the total revenues. And, as is the case with several other industries, China will be the fastest growing region moving forward. The country's music recording sector will outpace the broader market in terms of growth through a CAGR of 14.9% and account for another quarter of the industry in 2030 through a value of $29.7 billion. To add context to these growth figures, Mordor Intelligence estimates that the music market should have an 8.5% CAGR between 2019 and 2027.

While music recording has grown over the passage of time, the biggest disruption in the sector particularly due to the rise of the Internet and consumer technology has come in the form of music streaming. Piracy has been the thorn in the sides of record labels and artists, and it first picked up pace in the 2000s when file sharing sites such as LimeWire would see users buy compact disks (CDs), copy their data on computers, and share the music with the world - all for free. Since then, the streaming sector has come quite far, and lucrative subscription offers have brought more people into the fold of legal music access.

and

Recommended Stories