Sound recording and music publishing, 2023

Released: 2025-01-24

Streaming sales continue to drive revenue growth in the record production and distribution industry in 2023

The Canadian record production and distribution industry earned $903.3 million in operating revenue in 2023, up 21.2% from 2021, the last time the survey was conducted.

Streaming sales continued to drive growth in the record production and distribution industry, rising by one-quarter (+25.8%) from 2021 to $517.2 million in 2023.

Streaming accounted for 79.2% of total sound recording sales in the industry in 2023, up from a 75.9% share in 2021. While sales of compact discs and digital downloads continued to decline in 2023, sales of other formats, including vinyl records, rose again, accounting for 13.0% of total recording sales.

The resurgence in this sales category was first noted in the 2021 survey, when sales of other formats, including vinyl, became the second-largest sales category, behind streaming.

Foreign-controlled companies operating in Canada continued to dominate the industry landscape, earning $545.7 million from the sales of recordings in 2023, up 19.6% from 2021. Independent Canadian-controlled companies, which experienced a slowdown in recording sales from 2019 to 2021, bounced back to reach $107.7 million in recording sales in 2023, a 25.8% increase from 2021.

Music publishers experience a slower pace of growth

Music publishers are the second-largest industry in the sound recording industries group, accounting for just under one-third (30.5%) of total operating revenue in 2023. Music publishers generate revenue by licensing musical works and administering copyright on behalf of songwriters and other owners of musical compositions.

In 2023, music publishers earned operating revenues of $491.9 million, up 13.3% from 2021, albeit at a slower pace compared with the growth recorded from 2019 to 2021 (+16.5%).

Sound recording studios see improved growth

Within the industry group, sound recording studios were the industry most affected by the COVID-19 pandemic. Many studios temporarily suspended operations during the pandemic, particularly those that relied primarily on earning revenue from live recording sessions with musical artists.

Additionally, delays in production projects affected studios that provided audio post-production services for clients in the film and television industries. However, operating revenue growth improved from 2021 to 2023, with operating revenues rising 10.2% to $169.0 million.

Future trends in the sound recording industries

While growth is expected to remain strong in the sound recording industries, growth rates for the record production and distribution industry could slow slightly, especially because streaming sales already account for a significant share of total recording sales.

While streaming is still a relatively recent technology, streaming sales in Canada grew by 29.5% from 2019 to 2021, followed by a 25.8% increase from 2021 to 2023. There may be less room for growth as the market moves closer to potential saturation.

The sound recording industries will also continue to navigate technological change, including challenges and opportunities presented by artificial intelligence.

Contact information

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