Goldman Sachs is optimistic about the music industry's rush to $200 billion, predicting that streaming subscription fees will enter a "periodic upward trend".

Recently, Goldman Sachs issued a research report on the music industry, expressing optimism about the industry's development prospects, while also predicting that streaming subscription prices will continue to rise. The firm believes that there is huge growth potential for users in emerging markets, but the willingness to pay issue still needs to be addressed. The report predicts that total music industry revenue will increase from $105 billion in 2024 to nearly $200 billion in 2035 - this figure includes the recording music, music publishing, and live performance sectors. The report focuses on the music subscription economy in depth. Goldman Sachs analysts explained that although they slightly lowered their growth expectations for paid streaming revenue in 2025 and 2026, they still "remain optimistic about the steady development prospects of the streaming industry in the long run." One of the important reasons supporting this long-term optimistic outlook is the emerging markets. The report shows that 60% of global new streaming subscription users in 2024 come from emerging markets; however, the streaming penetration rate in these regions is only 8% - "this means that there are still billions of potential users yet to be developed." The analyst team also turned their attention to subscription price adjustments in mature markets, and specifically compared the differences between the music streaming and video streaming sectors. They pointed out: "So far, the pricing level of music streaming still lags behind video on-demand streaming. Over the past decade, the monthly subscription price for video streaming in the United States has increased almost 15% every two years, while the price of music streaming has basically remained stagnant." However, Goldman Sachs believes that this situation is about to change. Managing Director Eric Sheridan wrote in the report: "We note that confidence in the industry that streaming services will 'raise prices once every 12-24 months' is steadily increasing."