Q3 2025 Music Industry Update: Streaming Strength and Shifting Audio Landscapes
The third quarter of 2025 brought steady, broad-based growth across the global music business. From rising subscription revenues to new premium tiers and evolving audio formats, the industry continues to reshape itself around streaming and creator-led content. Below is a quick look at the key developments shaping this quarter.
Spotify Continues Its Upward Momentum
Spotify delivered another strong quarter, reflecting the platform’s ongoing dominance in global streaming. The company reported 713 million monthly active users, an 11% year-over-year increase, and 281 million paying subscribers. Revenues rose to approximately €4.3 billion, up around 12% from the previous year, while operating income grew significantly to roughly €582 million. Premium ARPU held steady, reinforcing the reliability of subscription revenue as Spotify’s primary engine.
Read more: https://www.billboard.com/pro/spotify-q3-2025-earnings-revenue-subscribers-podcasts/
Tencent Music’s Premium Strategy Pays Off
In China, Tencent Music Entertainment (TME) leaned heavily into premium subscription models, particularly through the expansion of its “Super-VIP” offering. This strategy produced strong financial results: subscription revenue climbed 17.2% year-over-year, online music services grew more than 27%, and ARPPU increased by over 10%. While total monthly active users declined slightly, the number of paying subscribers rose to 125.7 million, suggesting a shift toward a more committed listener base.
Sony Music Benefits from Streaming and Visual Media IP
Sony Music Entertainment also reported a solid quarter, driven by steady growth across recorded music, publishing, and visual media. Overall music revenues grew by roughly 11.7% year-over-year, while publishing surged by about 15.6%, supported by strong streaming performance. A standout factor was the significant rise in visual media revenues — up around 70% — boosted by major franchises such as Demon Slayer: Infinity Castle. This continues to show the power of cross-media IP in driving music-related revenue.
Read more: https://www.billboard.com/pro/sony-music-quarterly-earnings-profits-demon-slayer/
TikTok and iHeartMedia Push Creator Audio Into New Territory
Rounding out this quarter’s developments is a major move in creator-driven audio. TikTok and iHeartMedia announced a wide-ranging partnership that will bring TikTok creators into long-form and broadcast audio formats. The collaboration includes a new TikTok Podcast Network, the launch of TikTok Radio across both broadcast and digital channels, and integrations with live events and co-branded programming. This marks another significant step in the blending of creator culture with traditional audio media, expanding opportunities for creator-led content to reach new audiences.
Read more: https://www.billboard.com/pro/tiktok-iheart-media-creator-podcasts-radio-shows/
