Music Production, Publishing & Distribution NAICS 5122
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Industry Summary
The 4,200 companies in the sound recording industry in the US produce and distribute musical recordings, publish music, and provide sound recording and related services. Recorded music companies, also known as record “labels,” generate revenue through the sale of physical products (CDs, vinyl albums) and digital products (downloads, streaming). Distributors generate revenue through wholesale sales of music to online and brick-and-mortar stores. Music publishers generate revenue from royalties received through the exploitation of musical compositions, which include licenses to reproduce and perform music.
Music Piracy
Piracy is one the music industry’s most serious issues and significant source of lost revenue.
Industry Concentration
The musical production, publishing, and distribution industry is highly concentrated and dominated by large multi-national firms.
Recent Developments
Nov 7, 2025 - First Virtual Artist Appears On Billboard Airplay Chart
- The first AI-powered virtual artist has appeared on a Billboard airplay chart. Virtual artists Xania Monet's hit “How Was I Supposed to Know?” appeared on Billboard’s Adult R&B Airplay chart in 30th place on November 1. Telisha Nikki Jones, the creator of Monet, told CBS that she takes lines from her poems and puts them into an AI music generator app, then adds prompts to create the songs. Bill Werde, a former editorial director of Billboard, said that he doubts that virtual artists will replace human artists in significant numbers anytime soon, however. AI has been affecting Japan. It’s been affecting Korea a couple of years ahead of us, Werde said. You have artists that have charted in these countries, and it hasn’t turned into this, you know, sort of groundswell of suddenly everyone is an AI artist. It remains more of a curiosity, and I think that’s what you’re going to see in the States as well.
- The annual revenue of US record production and distribution companies increased significantly from 2015 through 2024, according to the US Census Bureau. Integrated record production and distribution companies earned an estimated total of $11 billion in 2024, up 129% from the $4.8 billion earned in 2015. Streaming is by far the most popular method of music consumption but the boom it has experienced over the last 10 years or so is slowing, according to Statista. Global music streaming revenue increased 11.5% in 2022, which is a significant drop from the growth rate of 24.3% the year before. Growth dropped to a single-digit rate in 2024.
- Independent music is very close to reaching 50% market share worldwide on a distribution basis, according to MIDiA’s State of the Independent Music Economy report. Independent music had 46.7% worldwide market share in late October 2024. Independents held 34.2% of the global market on a distribution basis in 2023 with $14.3 billion in revenues. Non-major shares were particularly high in regions like Asia Pacific, sub-Saharan Africa, and Middle East and North Africa, according to MIDiA. The results show a continuation of an ongoing trend in which, with the open-access of online platforms, independents gain opportunities and major labels lose their gatekeeping power of music distribution, according to MIDiA.
- Employment in the music production, publishing, and distribution industry increased moderately and average wages for nonsupervisory employees increased slightly during the first seven months of 2025, according to the US Bureau of Labor Statistics. Music production, publishing, and distribution industry revenue increased 4.9% year over year and 6.7% quarter over quarter during the fourth quarter of 2024, according to the US Census Bureau. Industry sales are forecast to grow at a 2.65% compounded annual rate from 2025 to 2029, slower than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
Industry Revenue
Music Production, Publishing & Distribution
Industry Structure
Industry size & Structure
The average company operates out of a single location, employs about 5-6 workers, and generates over $5 million annually. Employment averages within the industry range from 3 to 17 workers, and average revenue ranges from $640,000 to $15 million annually.
- The music publishing and distribution industry consists of about 4,200 firms that employ about 25,700 workers and generate almost $21.7 billion annually.
- The music publishing and record production/distribution sectors of the industry are concentrated; the top 50 companies account for 93-96% of sector revenue. The sound recording sector of the industry is more fragmented; the top 50 companies account for 50% of sector revenue.
- Record production/distribution companies account for 20% of establishments; music publishers account for 19% of establishments; sound recording studios account for 49% of establishments; and other sound recording firms account for 12% of establishments.
- The largest music publishers and integrated production/distribution firms include Kobalt, Warner Music Group, BMG (Bertelsmann), Universal Music Group (Viviendi), and Sony Music Entertainment (Sony). Major digital music distributors include CD Baby, Ditto, and Octiive. Major recording studios include Capitol Studios, Conway Recording Studios, and Sterling Sound.
- The US accounts for the biggest percentage of music sales globally and is the largest exporter of music, according to IFPI.
Industry Forecast
Industry Forecast
Music Production, Publishing & Distribution Industry Growth
Source: Vertical IQ and Inforum
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