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From Vinyl to Streaming: Economic Sustainability and Globalisation in the Music Industry

Author

Listed:
  • Hristo Ivanov

    (University of National and World Economy, Sofia, Bulgaria)

Abstract

This paper examines the transition of the music industry from physical media (vinyl, CD) to digital streaming, with a focus on economic and environmental sustainability. Historically, physical formats offered high margins for labels but generated significant material waste. Streaming has stabilised the global music economy, accounting for 67.3% of recorded music revenue by 2023, yet it has introduced new structural pressures. Economically, the pro-rata royalty model intensifies income inequality, concentrating the majority of royalties among the top 1% of artists, while platforms struggle with persistently high licensing costs and thin margins. Environmentally, the shift replaces material waste with substantial, consumption-dependent energy demands from global data center infrastructure. The analysis concludes that streaming offers macro-level stability, but its long-term sustainability is threatened by creator precarity and escalating energy consumption.

Suggested Citation

  • Hristo Ivanov, 2026. "From Vinyl to Streaming: Economic Sustainability and Globalisation in the Music Industry," Nauchni trudove, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 181-196, August.
    • Handle: RePEc:nwe:natrud:y:2026:i:3:p:181-196
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    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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