How the Music Industry Makes Money

The main revenue streams in music - recordings, publishing, live performance, licensing and merchandise - and who earns from each.

Music earns money in several ways.

Recorded music

Money from streaming, downloads and physical sales goes mainly to record labels and recording artists.

Publishing

Songwriters and publishers earn from the composition (lyrics and melody), separate from a specific recording.

Live performance

Concerts, festivals and private events. For many artists, live shows earn more than recordings.

Licensing

Music used in films, ads, TV, games and public places like cafés and malls.

Merchandise and brand deals

T-shirts, endorsements and sponsorships.

Global size

Global recorded music revenue reached nearly 30 billion dollars in 2024, according to the IFPI, with streaming the largest share.

Two copyrights

Every song has two copyrights:

The composition (songwriter/publisher).
The sound recording (label/artist).

The two cheques

When a song plays on a streaming service, one payment goes to the label for the recording and another to the publisher and songwriter for the composition.

Thinking musicians earn mainly from selling songs

Live shows, licensing and publishing are often bigger.

Key takeaways

Music earns from recordings, publishing, live shows, licensing and merchandise.
Songs have separate composition and recording copyrights.
Global recorded music revenue neared 30 billion dollars in 2024.
Live shows often earn artists the most.