Is it good to invest in music?

Music stocks have had mixed results in recent years. Some, like Spotify, have soared, while others, like SiriusXM and Sonos, have struggled. The music industry is changing quickly, which adds risk.

Who are the Big Three music companies?

The Big Three in music refer to the three dominant record labels: Universal Music Group, Sony Music Entertainment, and Warner Music Group. Each has several record labels under its umbrella.

Do music companies pay dividends?

Yes, some music stocks pay dividends. SiriusXM is noted for being a strong dividend payer, and Warner Music Group also offers an attractive dividend.

Is it better to invest in individual music stocks or ETFs?

Investing in individual music stocks gives you more control over what you own, especially since exchange-traded fund (ETF) options are limited in the music industry. If you're looking for an ETF, the best option is the MUSQ Global Music Industry Index ETF (NYSEMKT: MUSQ).

Are music stocks resilient during economic downturns?

The music industry isn't a monolith, and different stocks operate in different stock market sectors. A stock like Spotify, which charges a relatively low price for a monthly subscription, is likely to be resilient in a recession since it provides good value for regular listeners. By contrast, other music stocks like Live Nation or Sonos are more dependent on discretionary spending. Advertising is also cyclical, which will affect terrestrial radio companies.

How do music companies generate revenue?

Music companies generate revenue in a wide variety of ways. Some sell subscriptions to listen to music. Some promote concerts and sell tickets. Others license recorded music. Radio stations make money through advertising, and electronics companies make money by selling devices to listen to music.

6 Best Music Stocks to Buy in 2026

If you're looking for exposure to the music industry, this list will get you started.

By Jeremy Bowman – Updated Sep 15, 2026 at 1:35 PM EST | Fact-checked by Frank Bass

Key Points

Spotify leads U.S. podcast platforms, growing its paid subscribers to 300 million.
Sirius XM faces challenges from improved internet and 5G development despite a stable user base.
Live Nation posted a 9% revenue increase in 2025, dominating concert ticketing with over 70% market share.

Music itself is timeless, but the industry behind it, including music stocks, has been completely transformed. Streaming displaced physical sales. Social media replaced the traditional record label pipeline. Live events became the primary revenue engine for artists, and the power that once sat with a handful of major labels is now spread across a much wider ecosystem.

That shift creates an interesting investment landscape. Music stocks span a surprisingly broad range of businesses: streaming platforms, record labels, live event organizers, satellite and terrestrial radio companies, and manufacturers of instruments and audio equipment. Each sits at a different point in the music value chain, with different growth profiles and risk factors to match.

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Top music stocks to consider

Top music stocks include streaming services like Spotify, satellite radio companies like Sirius XM Holdings, smart speaker maker Sonos, concert promoter and ticketing company Live Nation Entertainment, iHeartMedia, a terrestrial radio and streaming service, and Warner Music Group, an owner of several record labels and a music publisher.

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Current price	Industry
Spotify Technology (NYSE:SPOT)	$114.5 billion	$558.26	Entertainment
Sirius XM (NASDAQ:SIRI)	$9.9 billion	$29.52	Media
Sonos (NASDAQ:SONO)	$1.8 billion	$15.66	Household Durables
Live Nation Entertainment (NYSE:LYV)	$40.4 billion	$170.24	Entertainment
iHeartMedia (NASDAQ:IHRT)	$422.6 million	$2.64	Media
Warner Music Group (NASDAQ:WMG)	$15.3 billion	$29.05	Entertainment

Data as of Sep 15, 2026. Showing 6 of 6 total entries.

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1. Spotify

NYSE: SPOT

Spotify Technology

Premium Feature

Moneyball Superscore

80/100

Today's Change

(0.35%) $1.95

Current Price

$558.26

Key Data Points

Market Cap

$115B

Day's Range

$548.50 - $561.82

52wk Range

$405.00 - $745.00

Volume

1.5M

Avg Vol

1.8M

Gross Margin

32.70%

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Spotify (SPOT +0.35%) pioneered legal music streaming more than a decade ago. It has since expanded beyond music by acquiring several podcast franchises. The streaming giant now counts high-profile creators such as Joe Rogan and Bill Simmons among its podcasters.

Spotify's paid subscriber base has now reached 300 million, growing 10% in 2025. It had more than 750 million monthly active users, which included ad-supported listeners.

Along its path to success, the company has beaten back consistent threats from Apple (AAPL -0.52%) and others. It now tops the iPhone maker in podcast listeners, making it the No. 1 podcast platform in the U.S. and showing that the pure-play audio stock is beating the tech giant.

Spotify's profits are starting to ramp higher after years of investment. The company should benefit from the subscription business model, which means that most of its incremental revenue flows directly to the bottom line as the marginal cost of adding a subscriber.

The company is now solidly profitable on an International Financial Reporting Standards (IFRS) basis with an operating margin of around 15%. The future looks bright for Spotify, as its revenue growth is solid and its margins should continue to expand.

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2. Sirius XM Holdings

NASDAQ: SIRI

Sirius XM

Premium Feature

Moneyball Superscore

56/100

Today's Change

(0.51%) $0.15

Current Price

$29.52

Key Data Points

Market Cap

$9.9B

Day's Range

$29.28 - $29.73

52wk Range

$19.77 - $32.66

Volume

3.6M

Avg Vol

4.1M

Gross Margin

40.40%

Dividend Yield

3.68%

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As the only satellite radio provider in the U.S., SiriusXM (SIRI +0.51%) stands out for relying on satellites to transmit its music and other audio content. The company can provide reliable service in places where internet-based music platforms fall short. SiriusXM is most often used inside vehicles since most car models have its technology pre-installed.

The company provides a range of audio entertainment, including music, sports, news, talk, and traffic and weather updates. Its brand may be best associated with Howard Stern, the shock jock who attracted a lot of attention in 2005 when he took his talk radio show to SiriusXM. Stern recently signed a contract extension for three years through 2028, and his show is expanding to HBOMax.

Sirius also acquired Pandora in 2019, increasing its exposure to music streaming. However, the company lags well behind Spotify in that area.

The satellite radio company has historically increased its revenue at only a modest pace because growth in the on-demand music business has favored streaming services. Revenue has been roughly flat since the start of 2023. As of the end of 2025, the company had 33 million subscribers on SiriusXM and 5.6 million on Pandora.

Improved internet connectivity and the expansion of 5G networks pose a longer-term threat to Sirius XM, as do new technologies like Elon Musk's Starlink and Amazon's (AMZN -2.02%) Kuiper.

3. Sonos

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NASDAQ: SONO

Sonos

Premium Feature

Moneyball Superscore

55/100

Today's Change

(0.51%) $0.08

Current Price

$15.66

Key Data Points

Market Cap

$1.8B

Day's Range

$15.14 - $15.68

52wk Range

$12.44 - $19.82

Volume

1.7M

Avg Vol

Gross Margin

46.52%

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Wireless speaker maker Sonos (SONO +0.51%) calls itself the inventor of multiroom wireless audio products. With around 100 streaming partners, including Apple Music, Pandora, and Spotify, Sonos is the leading pure-play company in its niche of the music industry. It finished its fiscal year 2025 with 53.4 million products registered in 17.1 million households.

After posting strong results earlier in its history, revenue growth has slowed in recent quarters. A problematic app update earlier in 2024 also plagued the company, leading to the ouster of CEO Patrick Spence and the layoff of about 200 employees. In fiscal 2026, the company has returned to growth on the top and bottom lines under CEO Tom Conrad, showing its streamlining efforts have paid off.

The company also faces competitive threats from tech giants such as Amazon, Alphabet's (GOOG -1.24%)(GOOGL -1.26%) Google, and Apple, all of which are investing significant resources in their own smart speakers. Investors in Sonos should be aware of these competitive pressures.

4. Live Nation Entertainment

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NYSE: LYV

Live Nation Entertainment

Premium Feature

Moneyball Superscore

73/100

Today's Change

(-0.73%) $-1.25

Current Price

$170.24

Key Data Points

Market Cap

$40B

Day's Range

$168.42 - $171.36

52wk Range

$125.34 - $189.25

Volume

1.9M

Avg Vol

2.2M

Gross Margin

23.16%

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Live Nation Entertainment (LYV -0.73%), which owns Ticketmaster, has a near-monopoly in concert ticketing, with more than 70% of the market. Recording artists increasingly perform at live events to earn money, since CD and physical album sales are essentially dead, and music festivals have become more popular in the era of social media.

Demand for live events remains strong, and Live Nation is benefiting. The company posted record results in 2025 with revenue up 9% to $25.2 billion.

In April, a jury found that Ticketmaster and Live Nation had an anticompetitive monopoly, which could force the company to sell off some assets, including its concert venues. The company is fighting the verdict and has filed briefs requesting the judge to rule in its favor or start over with a new trial.

Investors should pay attention to the outcome of the legal battle as the consequences for the company should be significant.

5. iHeartMedia

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NASDAQ: IHRT

iHeartMedia

Premium Feature

Moneyball Superscore

50/100

Today's Change

(-3.48%) $-0.10

Current Price

$2.64

Key Data Points

Market Cap

$423M

Day's Range

$2.60 - $2.71

52wk Range

$2.45 - $6.56

Volume

724.8K

Avg Vol

712.8K

Gross Margin

50.35%

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Formerly known as Clear Channel, iHeartMedia (IHRT -3.48%) is the biggest operator of broadcast radio stations in the U.S. It finished 2025 with 619 FM and 249 AM broadcast radio stations, in the same year, had the most No. 1-ranked stations across the top markets, including 25 top-ranked stations in the 50 biggest markets.

The company also operates iHeartRadio, a digital audio streaming service that gives users access to both streaming music and the digital feeds of radio stations nationwide. Broadcast advertising is the company's primary source of revenue, but competition from platforms like Spotify seems to be eating into the company's market share.

The company has struggled to grow revenue in recent quarters due to headwinds in the terrestrial radio market. Overall revenue was up 0.3% to $3.86 billion. It's also taken impairment charges of almost $1 billion in each of 2023 and 2024, showing the declining value of terrestrial radio licenses. In 2025, it took an impairment charge of $214 million due mostly to charges related to its FCC licenses. Results have improved in 2026 with reveneu up 4.7% in the second quarter.

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Historically, the company's advertising model has been highly profitable, and its reach gives it a competitive advantage since iHeartMedia can offer advertisers the most exposure in radio by far. However, the digital radio space is crowded with competition from Spotify, Sirius XM, and others, and terrestrial radio appears to be in long-term decline, so the future could be challenging for iHeartMedia.

6. Warner Music Group

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NASDAQ: WMG

Warner Music Group

Premium Feature

Moneyball Superscore

66/100

Today's Change

(-0.67%) $-0.20

Current Price

$29.05

Key Data Points

Market Cap

$15B

Day's Range

$28.43 - $29.09

52wk Range

$23.34 - $35.42

Volume

2.7M

Avg Vol

2.1M

Gross Margin

40.06%

Dividend Yield

2.63%

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Legacy record labels, such as Warner Records, Atlantic Records, Asylum, and Elektra -- all of which are owned by Warner Music Group (WMG -0.67%) -- still help high-profile musicians with marketing, management, and production. Ed Sheeran, Cardi B, and Bruno Mars all have contracts with labels owned by Warner Music Group.

The company earns most of its money from recorded music and also generates revenue from music publishing, which is the acquisition and licensing of musical compositions. Both of those categories are growing as the recorded music business enjoys a significant boost from the rapid growth in music streaming.

In fiscal 2025, which ended in September 2025, revenue rose 4% to $6.71 billion, and management said it's gaining market share in recorded music streaming. In fiscal 2026, growth has accelerated in part from its joint venture with Bain Capital, which has acquired $650 million in music catalogs so far.

In March, Warner Music announced an agreement with Netflix (NFLX -3.01%) to license its intellectual property for movies and documentaries based on its performers and songs, showing another way it can monetize its catalog.

How to invest in music stocks

Investing in music stocks follows the same process as buying any other publicly traded company. To do so, just follow the steps below.

Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the music stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in music stocks

There are pros and cons to investing in music stocks. Music is a timeless interest, and there will always be a business surrounding it. That includes both demand for live events, as music and concerts continue to be a strong draw for young adults, and for recorded music, even as the way we consume it has changed significantly. Let's take a look at the benefits and risks of music stocks.

Benefits:

There's consistent global demand for music entertainment.
Music festivals and concerts are highly popular with young adults.
New technologies and media have made it easier for audiences to find new music.
Leaders like Spotify and Live Nation show music stocks can be big winners.

Risks:

Technology can change quickly, rendering leaders obsolete and changing business models.
Demand can fluctuate depending on the popularity of top artists.
Changes in technology and tastes make the industry risky.
Tech giants pose a threat to the music industry.

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Methodology: How these stocks were chosen

Music stocks represent a small niche on the stock market, so investors have relatively limited opportunities to invest in pure-play music stocks.

The companies on this list offer investors a range of options in the music industry and are leaders in their respective categories.

Spotify dominates music streaming; SiriusXM has a monopoly in satellite radio; Sonos is the largest pure-play specialist in smart speakers; LiveNation leads the market for live music and ticketing; iHeartMedia is the leader in terrestrial radio, and Warner Music Group is one of the biggest record labels and music publishers.

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Should you invest in music stocks?

Looking forward, the music industry is likely to shift further to streaming-first consumption. While terrestrial and satellite radio won't disappear, the ubiquity of internet connections and car interfaces that make apps like Spotify easy to access should drive market share toward streaming, which gives listeners the most control over what they hear.

Similarly, the growth of streaming has put pressure on recording artists by killing the recorded music business model. That has led to more artists touring as their primary form of earning money, and social media culture has also driven demand for concerts and music festivals. That trend seems likely to continue, which is good news for Live Nation, notwithstanding the finding that it has an illegal monopoly.

Technology is likely to continue to affect the music industry as well. That includes new devices for listening to music like smart speakers, new ways to access music like virtual reality, and new ways to create music like artificial intelligence (AI).

Music stocks are risky as the industry is susceptible to technological disruption and rapid change, but the success of Spotify and other stocks shows that there is significant upside for businesses that establish competitive advantages and deliver growth.

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FAQ: Music stocks

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About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

TMFHobo

@TMFBowman

Jeremy Bowman has positions in Amazon and Netflix. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Netflix, Sonos, and Spotify Technology. The Motley Fool recommends Live Nation Entertainment. The Motley Fool has a disclosure policy.

Best Music Stocks to Buy in 2026

If you're looking for exposure to the music industry, this list will get you started.

Key Points

Top music stocks to consider

1. Spotify

Key Data Points

2. Sirius XM Holdings

Key Data Points

3. Sonos

Key Data Points

4. Live Nation Entertainment

Key Data Points

5. iHeartMedia

Key Data Points

6. Warner Music Group

Key Data Points

How to invest in music stocks

Benefits and risks of investing in music stocks

Benefits:

Risks:

Methodology: How these stocks were chosen

Should you invest in music stocks?

Related investing topics

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FAQ: Music stocks

Is it good to invest in music?

Is it good to invest in music?

Who are the Big Three music companies?

Who are the Big Three music companies?

Do music companies pay dividends?

Do music companies pay dividends?

Is it better to invest in individual music stocks or ETFs?

Is it better to invest in individual music stocks or ETFs?

Are music stocks resilient during economic downturns?

Are music stocks resilient during economic downturns?

How do music companies generate revenue?

How do music companies generate revenue?

About the Author

Read Next

Stocks Mentioned

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

Top music stocks to consider

Key Data Points

Key Data Points

Key Data Points

6. Warner Music Group

Benefits and risks of investing in music stocks

Benefits:

Risks:

Methodology: How these stocks were chosen

Should you invest in music stocks?

3 Best Tech Stocks to Buy in 2026 and How to Invest

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7 Best Travel and Tourism Stocks for 2026 and How to Invest

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FAQ: Music stocks

Is it good to invest in music?

Is it good to invest in music?

Who are the Big Three music companies?

Who are the Big Three music companies?

Do music companies pay dividends?

Do music companies pay dividends?

Is it better to invest in individual music stocks or ETFs?

Is it better to invest in individual music stocks or ETFs?

Are music stocks resilient during economic downturns?

Are music stocks resilient during economic downturns?

How do music companies generate revenue?

How do music companies generate revenue?

4. Live Nation Entertainment

3. Sonos

How to invest in music stocks

Key Data Points

Key Data Points

Key Data Points

5. iHeartMedia