Music Production, Publishing & Distribution NAICS 5122

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Industry Summary
The 4,100 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
May 7, 2025 - DOJ, FTC Launch Public Inquiry Into Live Music Business
- The US Department of Justice (DOJ) and Federal Trade Commission (FTC) announced a public inquiry into the concert and ticketing industries, according to the Hollywood Reporter. The move comes after President Trump signed an executive order calling for increased enforcement to crack down on ticket scalper bots. The president also called on the DOJ and FTC to submit a report within the next six months detailing recommendations for potential remedies. The new inquiry comes nearly a year after the DOJ and 40 state attorneys general filed a lawsuit against Live Nation, accusing the live music company of operating as a vertically-integrated monopoly through its ownership of the eponymous concert promoter and ticketing giant Ticketmaster.
- Downtown Music owned CD Baby has laid off staff due to an increasingly challenging environment for DIY and independent music distributors. DistroKid put 37 employees on “administrative leave,” in October 2024. Challenges for the sector include the elimination of payments to the smallest artists by streaming services, more creators failing to gain traction in an oversaturated market, and a $500 million UMG vs TuneCore lawsuit alleging infringement. “In an effort to support the changing needs of artists and the industry, we are consolidating certain CD Baby functions within Downtown and re-allocating resources towards long-term growth opportunities. Unfortunately, this has resulted in the elimination of certain roles and positions at CD Baby,” CD Baby said in a statement to Billboard.
- 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.
- Music production, publishing, and distribution industry revenue increased 2.8% year over year and 4.5% quarter over quarter during the third quarter of 2024, according to the US Census Bureau. Employment in the music production, publishing, and distribution industry and average wages for nonsupervisory employees increased slightly during the first month of 2025, according to the US Bureau of Labor Statistics. Personal consumption expenditures, an indicator of demand for music, increased moderately during the first 11 months of 2024, according to the US Bureau of Economic Analysis. Industry sales are forecast to grow at a 2.78% compounded annual rate from 2024 to 2028, 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 4,100 firms that employ about 23,000 workers and generate almost $21.6 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 38% 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

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