Do you know what the current economy of the music industry in Thailand is like?

In recent years, the global music industry has faced rapid changes, particularly due to the growth of digital streaming, which has boosted revenue in the music industry by 18% in recent years. Based on this growth, leading record labels such as YG Entertainment and GMM Music have benefited from this trend. Today, ACU PAY will bring everyone to understand the Thai music industry’s economy.

In the past, the music industry relied on 80% of the physical sales revenue, but when it entered the digital age, the share of digital music revenue increased dramatically. Digital channel revenue now accounts for 80% of the total revenue in the music industry, reflecting a significant change in consumer behavior.

In 2023, the global music industry was valued at 28.6 billion dollars and grew by 10.2%, contributing 67.3% of digital streaming revenue, representing approximately 680 billion baht. According to these figures, the popularity of music streaming platforms is steadily increasing.

Digital Streaming User Growth

Today, there are 667 million digital streaming subscribers worldwide, growing 11. 2% is an amazing number. In Thailand, YouTube has the fastest growth in subscriptions in Asia. Moreover, Tencent Holding Limited sees an opportunity in the Thai music industry, the largest market in Southeast Asia.

GMM Music, the record label with the largest market share in Thailand, has achieved 27% revenue growth and has proven its strength in the construction and management of continuous revenue generation (Music IP).

Music IP Development and the Role of Record Label

Music IP is a key driver for the growth of record labels in the digital age. Companies with a large volume of Music IP can continue to generate revenue from music without investing in new content. GMM Music is a good example of building an ecosystem that can increase revenue from existing music.

GMM Music’s Music IP strategy is not only limited to producing music for artists but can use the produced content to manage revenue through Video and Audio Music Streaming, enabling the company to generate sustainable revenue and continue to grow in a competitive music market.

Music Industry's Future Predictions

According to Goldman Sachs, the music industry will triple its growth potential over the next 10 years, especially in developing markets such as Asia, a region with fast growth potential. Investment in global music companies such as Tencent’s Universal Music Group and GMM Music confirms the future of the music industry.

The music industry has entered a rapidly changing and growing era thanks to the growth of digital streaming and efficient management of Music IP. Leading record labels can leverage this change to increase revenue and sustainability in a competitive market. The support of government organizations and agencies will help the creative economy in the music industry grow sustainably in the future.

References from
dailynews / thansettakij / prachachat