With the dawn of a new year, it’s time to speculate on what lies ahead in the ever-evolving world of music. Here are ten key predictions shaping the industry in 2025.
1. The streaming shake-up: Survival of the fittest
The Big Four of streaming—Spotify, Apple Music, YouTube, and Amazon Music—dominate the market, but a host of smaller platforms like Deezer, Tidal, and Bandcamp are vying for a share. Many niche services cater to specific regions, but razor-thin profit margins and complex licensing may force consolidation. Expect strategic partnerships, acquisitions, and some platforms folding under pressure this year.
2. Netflix dives into music streaming
Netflix thrives on growth and innovation, and music could be its next frontier. With nearly 300 million subscribers worldwide, the company might use its extensive reach to disrupt the music streaming landscape. By reallocating funds from video content, Netflix could offer a fresh alternative in the music sector.
3. AI will rewrite the rules of music creation
Artificial intelligence continues to reshape music in astonishing ways. In 2025, creating music with AI will likely become so accessible that anyone can do it. Personalised tracks could become a new digital currency, shared across social platforms like TikTok. This could lead to an ecosystem with fewer mainstream stars and less reliance on traditional record labels.
4. Vinyl overtakes CDs in Canada
CD sales have been steadily declining, with no signs of recovery, while vinyl continues its remarkable resurgence. In 2025, vinyl is expected to outsell CDs for the first time since the early 1990s. When factoring in second-hand sales, vinyl is already the king of physical formats.
5. Mainstream music fractures into niches
The days of collective musical experiences are fading. Streaming has shattered the gatekeeper model, allowing listeners to curate their own soundtracks from a massive pool of over 120 million songs. With an estimated 110,000 new tracks added daily, the notion of “mainstream” music is becoming increasingly irrelevant.
6. Old music gets new life
Major labels are increasingly turning to their archives rather than taking risks on new artists. Reissues, box sets, and special editions of older music are cheaper to produce and offer higher margins. In 2025, expect a continued focus on nostalgia as labels monetise their back catalogues.
7. Small music venues face uphill battles
Despite surviving the pandemic, many small venues are still struggling. Younger generations are attending fewer live gigs and spending less on drinks, the lifeblood of small clubs. Additionally, the high cost of attending major concerts often leaves little room in budgets for smaller shows.
8. Festivals face an uncertain future
Outside of major events like Glastonbury, music festivals are under pressure. Rising costs, particularly for insurance, and a trend of booking acts across multiple genres to attract diverse audiences are proving unsustainable. Smaller, more genre-specific festivals may fare better, catering to audiences with focused tastes.
9. High-fidelity audio makes a comeback
The rise of high-resolution streaming on platforms like Apple Music has rekindled interest in premium sound quality. Listeners are upgrading to high-end audio systems, and vinyl and CDs are benefiting from the resurgence of proper hi-fi. If smartphones begin supporting high-quality formats like FLAC, this trend will only accelerate.
10. A farewell to legends
Inevitably, we will lose more heritage acts in 2025. As many iconic artists reach the ends of their lives, fans are urged to seize any remaining opportunities to see them perform. Their music, however, will continue to resonate across generations.
The music world is poised for significant shifts in 2025. From technological advances to changing consumer behaviours, the industry is embracing transformation. Whether you’re a fan of vinyl, festivals, or exploring AI-driven creations, one thing is certain—music will continue to inspire and evolve.