After a prolonged decline, are investments in music gaining momentum once more?

Data analysis reveals a contradictory situation: a notable increase at the end of the year amidst an overall decline throughout 2024.

https://daryo.uz/ru/2024/12/11/posle-dolgogo-spada-investicii-v-muzyku-snova-nabiraut-oboroty2024-12-12 10:37:02

After a Long Decline: Are Investments in Music Gaining Momentum Again?

Despite a drop in funding for the music industry in 2024 by 68% compared to 2023 (from $10.08 billion to $3.21 billion), November brought an unexpected surge in investments. According to data from the Music Industry Funding Tracker by DMN Pro, investments in the core segment of the industry reached $46.6 million, which is 27% higher than the figure for November 2023. This increase, following an uptick in October, sharply contrasts with the overall downward trend.

A key factor in the November growth was the lack of major investments in adjacent sectors, such as artificial intelligence. Specifically, the exclusion of the Stability AI deal ($50 million) in November 2023 adjusts the investment figure for the core segment of the music industry to $36.8 million.

In November 2024, the largest deal was a Series B round for Trolley ($23 million), while the smallest was a seed round for Conduction ($250,000). The average investment size remained virtually unchanged at around $9 million.

Although a significant portion of funding in 2024 came from several large deals (Concord — $850 million, Iconic Artists Group — $1 billion, totaling about 58% of the overall volume), even accounting for the impact of investments in adjacent sectors in 2023, the decline in funding for the core segment of the music industry was approximately 35%.

Thus, the sharp rise in investments in November 2024 does not alter the overall negative trend. Further developments at the end of the year and in 2025 will reveal whether this is a short-term spike or a signal of a market shift.