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 there can be good value for the amount of entertainment it provides. 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 Apr 16, 2026 at 12:56 AM EST | Fact-checked by Frank Bass

Key Points

Spotify leads in streaming with 290M subscribers, driven by podcast expansion.
Sirius XM dominates satellite radio, vital for in-vehicle entertainment.
Live Nation's revenue surged from live events, but faces antitrust actions.

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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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Spotify Technology (NYSE:SPOT)	$88.7 billion	0.00%	Entertainment
Sirius XM (NASDAQ:SIRI)	$8.9 billion	4.10%	Media
Sonos (NASDAQ:SONO)	$1.7 billion	0.00%	Household Durables
Live Nation Entertainment (NYSE:LYV)	$39.2 billion	0.00%	Entertainment
iHeartMedia (NASDAQ:IHRT)	$787.7 million	0.00%	Media
Warner Music Group (NASDAQ:WMG)	$17.1 billion	2.29%	Entertainment

Data as of May 15, 2026. Showing 6 of 6 tickers.

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NYSE: SPOT

Spotify Technology

Today's Change

(0.38%) $1.64

Current Price

$432.54

Key Data Points

Market Cap

$89B

Day's Range

$425.02 - $440.87

52wk Range

$405.00 - $785.00

Volume

1.3M

Avg Vol

2.2M

Gross Margin

32.21%

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2. Sirius XM Holdings

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NASDAQ: SIRI

Sirius XM

Today's Change

(-0.53%) $-0.14

Current Price

$26.22

Key Data Points

Market Cap

$8.9B

Day's Range

$26.20 - $26.66

52wk Range

$19.77 - $28.77

Volume

3.2M

Avg Vol

4.6M

Gross Margin

40.75%

Dividend Yield

4.10%

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As the only satellite radio provider in the U.S., SiriusXM (SIRI -0.53%) 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.

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. However, 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 -1.15%) Kuiper.

3. Sonos

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NASDAQ: SONO

Sonos

Today's Change

(0.34%) $0.05

Current Price

$14.69

Key Data Points

Market Cap

$1.7B

Day's Range

$14.62 - $15.00

52wk Range

$9.65 - $19.82

Volume

1.4M

Avg Vol

1.5M

Gross Margin

44.74%

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NYSE: LYV

Live Nation Entertainment

Today's Change

(0.91%) $1.53

Current Price

$169.99

Key Data Points

Market Cap

$39B

Day's Range

$168.30 - $173.12

52wk Range

$125.34 - $175.25

Volume

Avg Vol

3.1M

Gross Margin

23.30%

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Live Nation Entertainment (LYV +0.91%), which owns Ticketmaster, has a near-monopoly in concert ticketing, with more than 70% of the market. Recording artists are increasingly performing 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.

5. iHeartMedia

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NASDAQ: IHRT

iHeartMedia

Today's Change

(-8.54%) $-0.45

Current Price

$4.76

Key Data Points

Market Cap

$788M

Day's Range

$4.68 - $5.20

52wk Range

$1.11 - $6.56

Volume

1.4M

Avg Vol

1.1M

Gross Margin

49.73%

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Formerly known as Clear Channel, iHeartMedia (IHRT -8.54%) is the biggest operator of broadcast radio stations in the U.S. It finished 2024 with 250 AM stations and 619 FM stations and, in the same year, had the most No. 1-ranked stations across the top markets, including 24 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, and revenue in 2025 fell, revenue up 3.6% to $3.87 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 and write-offs in its goodwill.

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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

Today's Change

(0.37%) $0.12

Current Price

$32.81

Key Data Points

Market Cap

$17B

Day's Range

$32.36 - $33.33

52wk Range

$23.34 - $34.63

Volume

2.2M

Avg Vol

2.4M

Gross Margin

40.16%

Dividend Yield

2.29%

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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, Berkshire Hathaway, 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

Key Data Points

2. Sirius XM Holdings

Key Data Points

3. Sonos

Key Data Points

Key Data Points

5. iHeartMedia

Key Data Points

6. Warner Music Group

Key Data Points

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FAQ: Music stocks

Is it good to invest in music?

Who are the Big Three music companies?

Do music companies pay dividends?

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

Are music stocks resilient during economic downturns?

How do music companies generate revenue?

Top music stocks to consider

1. Spotify

2. Sirius XM Holdings

6. Warner Music Group

Benefits and risks of investing in music stocks

Benefits:

Risks:

Should you invest in music stocks?

Related investing topics

FAQ

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

4. Live Nation Entertainment

5. iHeartMedia

How to invest in music stocks

3. Sonos