Expert Predictions For Music Streaming In 2025

Music fans across the UK are celebrating a record-breaking moment for music. Figures from 2024 show the industry pulling in about $2.95 billion, overtaking a previous record from 2001. Although prices have gotten higher in some areas, listeners haven’t lost interest in grabbing new releases.

Many believe this new high was driven strongly through streaming subscriptions, which passed the $2 billion mark. That said, physical purchases brought in over $400 million, with vinyl taking the lead. Observers say the mix of convenience and nostalgia might be the reasons for these results.

Taylor Swift’s latest release topped the album charts, selling more than 780,000 units. It was especially popular on vinyl, moving over 100,000 copies in that format. Analysts see this as a symbol of renewed enthusiasm for records in a digital age.

Why Are People Still Buying Records?

Vinyl continues to grow, jumping more than 10% in revenue for 2024 and landing at roughly $242 million. Fans often mention richer sound and a personal touch when picking up new and classic titles. Artwork and collectability seem to boost attraction even when digital access is widespread.

Reports show that CDs held steady, contributing around $156 million. Some folks enjoy the ease of track navigation without needing a constant internet connection. Many recall the fun of browsing shop shelves and are glad to see those traditions live on.

Streaming remains dominant, although rising fees might push more people to consider new ways of listening. Spotify raised its monthly rate again, and others could do the same. Many in the field think that a mix of online subscriptions and physical choices might maintain a strong flow of revenue.

Fans appear eager to support artists in multiple forms, from handy apps to cherished records on store shelves. That trend seems positive for both sides. Music lovers across the country are confident that this lively market will keep bringing fresh experiences in the years to come.

Experts Predict Streaming In 2025

With 2024’s success, it’d be interesting to see where the industry goes this year. Experts have shared where they see the industry going…

Our Experts:

• Dr Chris Anderton, Associate Professor in Cultural Economy, Southampton Solent University
• James Hannam, Course Leader Music Industries, Southampton Solent University
• Nikki Camilleri, Music Industry Expert, UK
• Rebecca Leigh, Educator and editor, Academized.com
• Jacob Varghese, Founder & Director, Noctil
• Louise Burke, Artist
• Francis Keeling, EVP Business Development, Orfium
• Vishal Ramakrishnan, Founding Member and Chief Business Officer, Round Group
• Luke Mendoza, Chief Strategy Officer, Beatchain
• Edward Ginis, CEO, OpenPlay

Dr Chris Anderton, Associate Professor in Cultural Economy, Southampton Solent University

“Music streaming growth has been slowing in the US and Europe in recent years, so I would expect to see some further acquisitions, mergers or collaborations between non-Western music companies and the global giants of streaming and recording. Similarly, there is huge potential for the recording industry to extend their licensing deals and collaborations into social media and online gaming where they can connect more closely with music audiences.

“There is also likely to be continued work to engage and monetise ‘superfans’ – those most engaged with particular artists, as the streaming space is moving towards a more highly individualised and fractured music market. This will include not only newer artists, but the vast catalogues of heritage acts and albums that can be leveraged by record companies for greater profit with relatively minimal investment.

“And there will continue to be innovation driven by AI startups, as the music industry and streaming platforms come to terms with how new ideas can drive engagement and growth, including ever-more personalised playlists that adapt intuitively to the needs of individual streamers.”

James Hannam, Course Leader Music Industries, Southampton Solent University

“Both opportunities and challenges appear in the music industry outlook for 2025.

“Opportunities for artists and music companies include the likely continued growth of streaming and the ongoing appeal of physical formats such as vinyl and CD (both of which held up well in 2024).

“The video game industry continues to provide multiple opportunities for music companies, artists and developers to collaborate, with key music-heavy titles such as GTA 6 due for release this year. And the impact of a memorable ‘sync’ in video games, films and TV is likely to continue, following the success of song placements for Kate Bush (Stranger Things, 2022) and Sophie Ellis-Bextor (Saltburn, 2023).

“Challenges are likely for small to medium-sized festivals. Dozens closed down in 2024 and this is likely to continue given the multiple issues faced in terms of licensing and tough ongoing conditions in the wider economy. These challenges will also affect small music venues and nightclubs, especially when considering current weekly working patterns (few office workers attend on Fridays) and the decline in alcohol use amongst Gen Z.

“Another challenge is the potential demise of TikTok in the US (scheduled for January 19th, pending a Supreme Court decision). TikTok has informed music business marketing strategies for several years and adapting to life without it in music’s primary territory would be challenging. We would expect Meta and YouTube to compete to fill the void, should TikTok be removed in the US.”

Nikki Camilleri, Music Industry Expert, UK

“In 2025, we expect to see a number of key trends emerging in music including a notable return to artist development. With music companies investing less in A&R, the prominence of DIY and independent services and proliferation of social media, artists need to learn to fan build both digitally and irl as well as convert their fans from third party platforms to an owned space to both grow and gain the support of industry. Owning fan data is a crucial trend for 2025 along with direct to fan marketing and nurturing superfans.

“After all, if we look at the average spending habits of super fans versus passive fans the ratio can be as jarring as having 5 superfans worth 250 passive fans in terms of revenue generated for the artist. (This is based of average spendign habits of passive vs. super fans). A superfan can be worth anywhere from 10 to 100 times more to an artist over their lifespan.

“Streaming itself will remain a prime consumption channel but it does feel it will grow less important to artists as gigging and merchandise prove to be the biggest earners for them. While engaging with fans digitally and having them listen to your music helps to drive fandom – streaming begins to feel more of a supporting way to engage online versus the key income stream or driving force behind success it once felt more aptly positioned as. How this will be addressed in 2025 is yet to be seen!”
 

Rebecca Leigh, Educator and editor, Academized.com

“For one thing, AI-based music personalisation will get even more complex – providing listeners with incredibly tailored experiences based on mood, movement, even in real-time. Sites will likely harness increased integration of virtual reality (VR) and augmented reality (AR) to deliver live concert experiences, and users will be able to attend performances from almost anywhere in the world.

“In terms of content, independent artists will flourish, thanks to direct-to-fan models and tools that give greater control over distribution. Streaming platforms could even add exclusive content such as live performances and early access in order to promote subscriber growth. The ever-present call for sustainability will also play a role in how platforms function, with environmentally friendly approaches growing more widespread.”

Jacob Varghese, Founder & Director, Noctil

“AI and AI-generated music will continue to be a big topic. While some industry players view AI as a threat, others recognise its potential to revolutionise the music business. And don’t get me wrong – I fully understand why music companies do not want to license content for AI training. The potential for copyright infringement is still high and music works shouldn’t be used without a proper license. The use of a music work by an AI model should still be properly credited and most importantly remunerated to the rightsholder and artist. Music shouldn’t be used for free.

“At the moment, government regulations (especially in Europe) are more beneficial for AI companies, rather than music companies. The current General TDM Exemption requires each rightsholder to opt out of each song and musical work – It creates technical and practical challenges to implement from both sides.

“Nonetheless, I believe there is a way forward. This includes AI companies and the music industry working together to create a pathway to build a business model around it that benefits all parties. A new licensing model may evolve in the coming years that is specific to AI companies. A simplified licensing model for specific AI use cases that do not require individual copyrights from various parties.”

Louise Burke, Artist

“By 2025, I believe music streaming will shift from the algorithm-driven chase for hits to a space that celebrates depth and artistry. I see platforms embracing smaller, community-focused ecosystems where artists and listeners connect meaningfully. Just as a well-crafted lyric carries the weight of a story, streaming will evolve into a medium for immersive, narrative-led experiences – a home for music that lingers, resonates, and transcends fleeting trends.”

Francis Keeling, EVP Business Development, Orfium

“The UK music industry experienced a 20-year high in 2024 in both consumption and revenue. The main driver for this growth is streaming and this trend is set to continue in 2025. Video streaming services are producing more content than ever, in numerous different territories and languages, with music being integral to all of these productions.

“According to the annual figures released by the Entertainment Retailers Association (ERA) streaming services like Spotify, YouTube Music, and Amazon generated the equivalent of 178 million albums, exceeding the previous record of 172 million albums sold in 2004 at the height of the CD boom. This figure underscores the dominance of streaming as the preferred method of music consumption in the digital age.

“With the continued growth of streaming, we expect to see significant growth in advertising across streaming platforms, and with that, increased monetisation opportunities for the music used in those ads. This will become an additional revenue driver for composers and rights owners. Stakeholders across the industry will have to continue to embrace technology to track all of this music usage and ensure artists and songwriters get paid fairly and accurately whenever their music is used on these streaming services around the world.”

Vishal Ramakrishnan, Founding Member and Chief Business Officer, Round Group

“The rise of the ‘superfan’ will continue to transform the music industry in 2025, redefining how artists connect with their most loyal followers. These passionate fans are no longer just supporters but integral to an artist’s success, driving engagement and revenue through meaningful, personalised experiences. However, realising its full potential hinges on overcoming a significant challenge: the fragmentation of industry data on a global scale.

“Technology and data insights are key to bridging this gap. By centralising disparate data sets, artists and marketing teams can better understand an artist’s superfans, enabling highly targeted engagement strategies. With a deeper understanding of what their superfans value, artists and labels can unlock new revenue streams beyond traditional streaming, paving the way for a more sustainable and fan-centric music ecosystem.”

Luke Mendoza, Chief Strategy Officer, Beatchain

“With 120,000 tracks being uploaded daily to streaming platforms, we are in an era where independent musicians can create and share more music than ever before. However, this abundance brings significant challenges for artists, both in being discovered by potential audiences and the industry and achieving sustainable monetisation.
In 2025 established music brands will have the opportunity to bridge the gap between artists and audiences created by this oversaturation.

“By leveraging advanced technology platforms to identify talent and connect it with the right audience at scale, these brands will cut through the noise and act as tastemakers to amplify good-quality music.

“Moreover, as streaming becomes increasingly global, independent music creator services will play a vital role in driving the international reach of indie stars from emerging markets such as India, Brazil, and regions like West-Southern Africa and MENA. Localised platforms and region-specific streaming services will be key in this evolution, offering tools and services that cater to artists within their unique cultural and linguistic contexts while simultaneously enabling their music to gain global recognition.”

Edward Ginis, CEO, OpenPlay

“In 2025, we’ll see a surge in AI-driven music creation, making attribution, rights management, and paying creators increasingly complex. At the same time, we expect further consolidation in the music industry, with independent music companies—and even technologies that have supported independent artists—being acquired by major players.

“This is why we need more entrepreneurs to step into the space and build innovative solutions that combat these challenges. From Day One, we built OpenPlay to provide the infrastructure for where the industry is going, empowering creators and entrepreneurs alike. This ensures the overall ecosystem remains diverse, scalable, and sustainable.”