EU Recorded Music Revenue Hits 6 Billion Euros in 2025 as Growth Outpaces China

The European Union's recorded music market generated €6 billion ($6.96 billion) in revenue during 2025, a 5.1% increase that added $340 million (€293 million) over 2024, according to the International Federation of the Phonographic Industry's newly released "Music in the EU" 2026 report. That straight revenue gain topped China's $335 million (€289 million) year-over-year increase for the same period, a milestone the IFPI highlighted in its analysis. The comparison applies to absolute revenue growth, not percentage growth.

Paid streaming drove the largest share of the EU's expansion. Revenue from paid streaming rose by $255 million (€220 million) in 2025, per the report. Ad-supported listening contributed a $56 million (€48 million) year-over-year bump, while physical formats including vinyl added $67 million (€58 million). The IFPI noted that half of the top 10 vinyl markets globally are EU countries, with Spain the fastest growing among them at 44.9% year-over-year growth.

Several EU member states posted double-digit recorded music revenue gains in 2025. Romania led with a 16.1% year-over-year jump, followed by Slovakia and the Baltics at 15.9%, Hungary at 15.5%, and Slovenia at 14.2%. Poland and Spain each grew 13.7%, Bulgaria 13.2%, Greece 12.7%, and Italy 10.7%. These figures come from the IFPI's country-specific breakdowns included in the report.

The report frames these gains against a backdrop of comparatively low subscription penetration, suggesting room for further expansion. Only 27% of EU residents use a music subscription, though not all of those are main accountholders. That figure compares with 47% in the United Kingdom and 54% in the United States, according to the IFPI's data. The gap between EU penetration and that of the US and UK markets is roughly twofold.

Domestic artists held a strong position in EU listening during 2025. Year-end top-10 tracks in relevant EU countries were released by domestic artists at an average rate of 53.5%, compared with 46.8% for the rest of the world, per the report. Acts from other EU nations contributed an additional 5.2% of those top-10 placements. The data points to cross-border listening within the bloc supplementing already robust local-artist consumption.

The revenue trajectory has translated directly into dealmaking strategy throughout 2026. Sony Music acquired Germany's Fame Recordings, France's Spookland, and Denmark's One Seven Music during the year, among other transactions. Sony Music also purchased the catalog of Sweden's Sound Pollution Songs. Each deal targets a different EU territory, reflecting the breadth of growth the IFPI report documents.

Warner Music has pursued its own EU expansion in parallel. Late last month, the Mökkitie Records catalog owner Warner Music partnered with Austria's Tonherd. Warner also launched Warner Records Germany, installing longtime Warner Music Central Europe executive Lea Londa at the helm of the new operation. These moves came weeks before the IFPI report quantified the regional growth that underpins such investments.

The IFPI's report also encompasses AI and streaming fraud policy proposals alongside its financial data, though the organization foregrounded the hard revenue numbers as the centerpiece of the document. The combination of rising revenue, low penetration relative to the US and UK, and active major-label dealmaking positions the EU as a market where labels, platforms, and independent distributors are competing for share in territories that have not yet reached saturation.

For creators operating in or targeting EU markets, the data suggests that local-language and regional repertoire commands a measurably larger share of top-chart positions than the global average. The 53.5% domestic-artist share in year-end top-10 tracks, paired with the 5.2% intra-EU cross-border contribution, indicates that EU listeners favor nearby repertoire at rates above the worldwide norm of 46.8%. Creators releasing music in EU languages may find a structural advantage reflected in these consumption patterns.

The next confirmation point is whether the EU's paid streaming penetration, currently at 27%, narrows the gap with the UK's 47% and the US's 54% in the IFPI's 2027 cycle. Country-level revenue data for 2026, particularly from the double-digit growth markets Romania, Slovakia, Hungary, and Slovenia, will show whether the expansion rates documented in this report are accelerating or plateauing.