According to the organization’s latest findings, Canada saw revenue growth, reaching $957.9 million, but dropped one place in the rankings to become the ninth-largest global music market.
When it comes to music, Canada continues to punch above its weight on the world stage.
According to the newly released IFPI (International Federation of the Phonographic Industry) Global Music Report, Canada’s recorded music revenues grew for the 11th consecutive year in 2025.
The annual study provides a deep dive into the global music market, analyzing issues and trends within the industry.
The report finds that Canada experienced a 5.6% increase in recorded music market growth last year to reach $957.9 million.
That’s a notable jump from last year’s findings, which flagged a relatively small growth of 1.5%, reaching $660.3 million USD. However, the 2024 figures were in comparison to an unusually high 2023, which was elevated by a large one-off performance rights revenue payout.
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Despite the revenue peak, Canada dropped one place in the global rankings, now the ninth-largest market across the world.
“We do punch above our weight,” says Patrick Rogers, CEO of Music Canada, the trade association representing Canada’s three major record labels. “That punching above our weight is based on strong copyright laws and strong fundamentals in the marketplace.”
Streaming Is Key To Revenue Success
Music Canada and IFPI credit streaming as a key catalyst.
Revenues overall increased 4.5% to $747 million, while subscription streaming revenues grew 3.4% to $598.5 million and ad-supported streaming (audio and video combined) rose by 9.4% to $148.3 million.
“The idea that you can listen to any song ever recorded, when you want, how you want, through the service of your choice, is really powerful,” Rogers says.
Yet, physical music climbed by 15.9% to $122.2 million, led by vinyl, CD and other formats. While they’re major figures, Rogers says, the “growth numbers” can’t be compared to the era of piracy, when some listeners were illegally downloading their music in the late 90s and early 2000s, decreasing physical media sales. Nearly three decades later, streaming has made music accessible to everyone.
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“Canadians have revalued the value of music to a point in which people are happily paying for music again,” he explains.
It’s not just Canada. The music market experienced growth worldwide in 2025. For the first time, recorded music revenue surpassed $30 billion for the first time. The total figure is the highest mark since 1999, not accounting for inflation. Paid subscription streaming saw an increase of 8.8%, taking up 52.4% of the worldwide ecosystem.
While the U.S. saw growth of 3.5%, the biggest revenue boost is occurring in Latin America, which the IFPI has dubbed “the fastest-growing region.” It saw a 17.1% growth, but is down from last year’s 22.5% rise.
The Synch Boom
An increase in revenue, the report finds, can be attributed to the music we hear through our screens.
In Canada, performance rights revenues increased 4.8% to $58.7 million and synchronization revenues jumped 11.0% to $13.8 million — illustrating a demand for recorded music across film, television, advertising and gaming use.
“Canada’s strong performance reflects the success of a licensed and innovative music ecosystem that connects fans with the music they love while enabling continued investment in artists, new releases and long-term career development,” says Rogers.
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Tate McRae’s Cross-Continental Star Power
IFPI points to one Canadian artist who has successfully exported globally: Tate McRae. While the RCA Records-signed artist didn’t rank on IFPI’s Global Artist Chart, the report highlights her major boom in the music industry.
When her single, “You Broke Me First,” hit the airwaves in 2020, it wasn’t an overnight success, but in the months following, McRae’s loyal fanbase drove the song’s streams. The release crystallized how her label interacts with her work: patient and data-informed, but instinct-led.
RCA’s global infrastructure and investment amplified McRae’s effect globally, with early U.K. support helping break her internationally, and the label’s investment in promotion across key markets.
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McRae’s team used touring and live performances as an accelerant, before and through her release cycles — always keeping her name in the conversation. It paid off: last year, she notched a career milestone, with nearly $111 million grossed on her Miss Possessive World Tour, in support of her chart-topping third studio album, So Close To What.
“We enjoy a really good relationship with her,” the label’s CEO, Peter Edge, says. “She’s collaborative. We’re moving in the same direction. She pushed us to rethink strategies – she’s a modern-day artist, and we’re here to support her vision.”
AI's Role in the Industry
The report identifies two main policy priorities: fostering a new relationship with generative AI and combating streaming fraud through an AI lens. The former was a major theme in last year’s report, spotlighting one of the most polarizing developments in music and technology that continues to be one of the defining issues in the industry today.
While the industry debates ethical uses of AI in music, the report shows that record labels are not shying away. In fact, they are actively seeking out opportunities to develop music licensing models that generate revenue opportunities for artists.
Meanwhile, a rising topic within the global music industry is streaming fraud, through artificially generating plays for manipulated or fake content, depleting artists’ revenue.
It has led to several controversies surrounding Canadian artists. Last year, Winnipeg singer-songwriter Leith Ross spoke out after eight AI-generated singles were added to their Spotify profile. In January, the streaming platform removed four songs uploaded to Canadian icon Anne Murray’s page. Ross joined homegrown heavyweights like Sarah McLachlan and MacDeMarco in SOCAN’s campaign to stop unlicensed AI music.
“Especially in the streaming model right now, every sort of fraudulent stream pollutes the data for streams that really matter to artists, here in Canada,” Rogers says.
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While there has been a call to action, the industry will continue to discover new strategies and tactics.
“The labels are heavily involved in working with the platforms to create places where platforms where the world's best music mingles with new music and exciting music and genre music, but it's not a breeding ground for slop that is designed to take money out of that marketplace.”
Read the full IFPI report here and more global highlights here.
