Canada’s recorded music market continues its impressive growth trajectory, reaching CAD$957.9 million in 2025 – a 5.6% increase from the previous year, according to the IFPI’s Global Music Report 2026 released today. This sustained expansion, marking the eleventh consecutive year of growth, solidifies Canada’s position as a significant player in the global music landscape. The report, a comprehensive analysis of the worldwide music market, highlights the key trends and challenges shaping the industry.
The global music industry as a whole is experiencing a renaissance, with total recorded music revenues surpassing $30 billion for the first time since 1999, as reported by both the IFPI and That Eric Alper. This growth is largely fueled by the continued dominance of streaming services, which are transforming how people consume music worldwide.
Streaming Drives Canadian Music Market Growth
In Canada, streaming remains the primary engine of revenue growth, accounting for CAD$747 million in 2025 – a 4.5% increase year-over-year. Within the streaming sector, subscription services continue to lead the charge, generating CAD$598.5 million, a 3.4% increase. Ad-supported streaming platforms, encompassing both audio and video formats, also experienced significant growth, rising by 9.4% to CAD$148.3 million. This demonstrates a diversifying revenue stream within the Canadian market, catering to a wider range of consumer preferences. Streaming now represents the vast majority of Canada’s total music revenue, confirming its status as a mature streaming market.
The shift towards streaming isn’t simply about access; it’s about convenience and personalization. Services like Spotify, Apple Music and Amazon Music offer curated playlists, algorithmic recommendations, and on-demand access to vast music libraries, appealing to a broad demographic. This accessibility has been particularly impactful in attracting younger listeners, who are increasingly abandoning traditional music ownership models in favor of subscription-based services.
Resurgence of Physical Formats
Although streaming dominates, the Canadian music market also witnessed a surprising resurgence in physical formats in 2025. Revenue from physical sales increased by an impressive 15.9% to CAD$122.2 million. This growth is largely attributed to the continued popularity of vinyl records, which have experienced a remarkable revival in recent years, appealing to collectors and audiophiles. Renewed interest in CDs and other physical formats also contributed to this positive trend. This demonstrates a continued demand for tangible music experiences, even in the digital age.
The appeal of vinyl extends beyond sound quality. Many consumers appreciate the ritual of listening to an album from start to finish, the artwork, and the overall aesthetic experience. Record stores have also seen a resurgence, becoming community hubs for music lovers. This trend suggests that physical formats aren’t simply a nostalgic throwback, but a viable and evolving part of the music ecosystem.
Performance Rights and Synchronization Revenue Increase
Beyond streaming and physical sales, performance rights and synchronization revenues also contributed to the overall growth of the Canadian music market. Performance rights revenues, generated from the public performance of music, increased by 4.8% to CAD$58.7 million. Synchronization revenues, earned from the use of music in film, television, advertising, and video games, rose by 11.0% to CAD$13.8 million. This reflects the increasing demand for music across various media platforms.
The growth in synchronization revenue is particularly noteworthy, as it highlights the importance of music in storytelling and brand building. Music supervisors play a crucial role in selecting songs that enhance the emotional impact of films, television shows, and commercials. This demand for music creates opportunities for artists and songwriters to reach wider audiences and generate additional income.
Industry Response and Future Outlook
Patrick Rogers, CEO of Music Canada, emphasized the success of Canada’s licensed and innovative music ecosystem. “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,” Rogers stated. “Maintaining that momentum requires a policy framework that protects rights, supports innovation and recognizes the value of recorded music in the digital economy.”
Music Canada, the trade association representing Canada’s major record labels – Sony Music Entertainment Canada, Universal Music Canada, and Warner Music Canada – plays a vital role in advocating for the interests of the Canadian music industry. The organization works with artists, independent labels, publishers, platforms, and other stakeholders to foster a dynamic and sustainable music ecosystem. Further information about Music Canada’s work can be found on their website.
Canada’s consistent growth within the global music market is also reflected in its ranking. The country remained a top ten global market in 2025, holding ninth position worldwide and achieving a compound annual growth rate of 6.9% between 2020 and 2025. This sustained growth underscores the resilience of Canadian recorded music investment and consumption. The IFPI, representing over 8,000 record company members globally, provides further insights into the evolving dynamics of the international music industry. More information about the IFPI and its work can be found on their official website.
Looking ahead, the Canadian music market is poised for continued growth, driven by innovation in streaming technology, the enduring appeal of physical formats, and the increasing demand for music across various media platforms. However, maintaining this momentum will require ongoing collaboration between industry stakeholders, policymakers, and consumers to ensure a fair and sustainable ecosystem for artists and creators.
Key Takeaways:
- Canada’s recorded music market grew by 5.6% in 2025, reaching CAD$957.9 million.
- Streaming remains the dominant force, accounting for the majority of revenue.
- Physical formats, particularly vinyl, experienced a significant resurgence.
- Canada ranks ninth globally in recorded music revenue.
- A supportive policy framework is crucial for continued growth.
The next major update on the Canadian music market is expected with the release of the Music Canada annual report in early 2027. Stay informed about the latest developments in the music industry by following Music Canada and the IFPI. Share your thoughts on the growth of the Canadian music market in the comments below!
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