Volkswacht Bodensee - Global music market grows, calls for AI compensation: industry body

Music revenues rose 6.4 percent, marking the eleventh consecutive year of expansion, according to the International Federation of the Phonographic Industry, which represents more than 8,000 global record labels.

Streaming accounted for nearly 70 percent of annual revenue, with paid streaming subscriptions reaching 837 million subscribers worldwide.

But the IFPI warned against the increasing threat of AI-generated streams of fake content.

"Streaming fraud is theft, plain and simple," the group said in its annual report, calling instead for technology to "support and enhance creativity, not replace it."

AI-generated tracks regularly go viral, such as the runaway success of an AI cover of Belgian musician Stromae's "Papaoutai" at the end of January.

According to the report, Deezer revealed that it receives more than 60,000 AI-generated tracks every day.

AI music generation platforms -- such as US based Suno and Udio -- argue their work is covered by the American copyright loophole of "fair use," which does not require rights holders' consent.

The IFPI urged policymakers to uphold copyright protections.

"Music is embracing the future, demonstrated by record company partnerships with generative AI developers who respect the rights of creators," the group said.

Suno reached an agreement with record label Warner Music Group in November to compensate artists whose work is used to create AI-generated tracks.

Revenues from physical formats were up, including from vinyl which grew 13.7 percent.

Asia drove the rise in vinyls and CDs, while these formats were almost non-existent in the North Africa and Middle East market, where streaming accounts for 97.5 percent of revenue.

Taylor Swift was the biggest-selling global artist of 2025, followed by Korean group Stray kids and Canadian rapper Drake.

E.Gasser--VB