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Goldman Sachs Lowers Global Music Industry Growth Forecast, Wiping Out $2.5 Billion

Goldman Sachs lowered its global growth expectations for the music industry for the next five years in its Music In The Air report published Tuesday.

Nonetheless, Goldman analysts said they expect the value of music rights and companies to remain “resilient” amid an uncertain macroeconomic backdrop, and that more frequent streaming subscription price increases and individualized service plans will provide support. Researchers said these “meaningful changes to our streaming assumptions” stem from a structural shift of more consumers preferring shortform as opposed to longform videos, less upside gained from emerging platforms and the impact of near-term uncertainty. Those factors also caused Goldman to expect slightly lower subscriber and average revenue per user growth among streaming platforms.

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