The music industry is changing
Sheridan and Laszczyk also expect other significant shifts in the industry. Among them is a move towards video—or, as they describe it, “a blurring of lines between different forms.” As a way to attract new users, Sheridan and Laszczyk say, “we’re seeing more players push video content onto their platforms.” Streamers are also bundling audiobook and music subscriptions to merge those two audiences.
Although generative artificial intelligence (AI) once prompted worries about the proliferation of new, AI-generated music on streaming platforms, there has been no evidence of that yet. “But AI remains a key topic,” Sheridan and Laszczyk say. “What we’re seeing is a collaboration between music publishers and platforms to try to protect the interests of artists from the disruptions of AI.”
The team has also changed its forecast for the ad-supported streaming market, now projected to grow at a compound annual growth rate of 5.7% between 2025 and 2030, versus 11.3% previously. “That’s a reflection of cyclical pressure,” Sheridan and Laszczyk say. “Given macroeconomic concerns, we see slower growth for ads in the near term. The ad-supported revenue model will take time to improve—but it will happen.”
This article is being provided for educational purposes only. The information contained in this article does not constitute a recommendation from any Goldman Sachs entity to the recipient, and Goldman Sachs is not providing any financial, economic, legal, investment, accounting, or tax advice through this article or to its recipient. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this article and any liability therefore (including in respect of direct, indirect, or consequential loss or damage) is expressly disclaimed.
Source: goldmansachs.com
