As a form of entertainment, music is timeless, but the music industry itself has been seriously disrupted over the past generation. Aspiring artists now seek to develop a following through social media platforms and streaming services, and the live music industry continues to grow.
Power and influence in the music industry have been decentralized, which creates both opportunities and challenges for music industry companies. Manufacturers and sellers of equipment such as speakers and instruments, music streaming companies, record labels, event organizers, and terrestrial and satellite radio companies are all participants in the music industry.
Top music stocks in 2025
These are some of the best music companies in 2025:
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Spotify Technology (NYSE:SPOT) | $135.2 billion | 0.00% | Entertainment |
| Sirius XM (NASDAQ:SIRI) | $7.1 billion | 5.13% | Media |
| Sonos (NASDAQ:SONO) | $2.0 billion | 0.00% | Household Durables |
| Live Nation Entertainment (NYSE:LYV) | $34.6 billion | 0.00% | Entertainment |
| iHeartMedia (NASDAQ:IHRT) | $453.4 million | 0.00% | Media |
| Warner Music Group (NASDAQ:WMG) | $16.3 billion | 2.33% | Entertainment |
1. Spotify
Spotify 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.
NYSE: SPOT
Key Data Points
Spotify's paid subscriber base has now reached 276 million, growing 11% in the first quarter of 2025. It had almost 700 million monthly active users, which included ad-supported listeners.
Along its path to success, the company has beaten back consistent threats from Apple (AAPL +0.08%) 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 profitable on an International Financial Reporting Standards (IFRS) basis. The future looks bright for Spotify, as its revenue growth is solid and its margins should continue to expand.
2. Sirius XM Holdings
As the only satellite radio provider in the U.S., SiriusXM 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.
NASDAQ: SIRI
Key Data Points
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. However, Stern's contract expires in December 2025. Stern, who was 71 as of this writing, has denied rumors about retiring.
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 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 second quarter of 2025, the company had 33 million subscribers on SiriusXM and 5.7 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 +0.46%) Kuiper. At the same time, its relationships with automakers give it a unique advantage since its satellite radios are pre-installed in nearly every new vehicle in the U.S.
3. Sonos
Wireless speaker maker Sonos calls itself the inventor of multiroom wireless audio products. With around 100 streaming partners, including Apple Music, Pandora, and Spotify, Sonos finished its fiscal year 2024 with 50.4 million products registered in 16.3 million households.
NASDAQ: SONO
Key Data Points
After posting strong results earlier in its history, revenue growth has faded. 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.
The company also faces competitive threats from tech giants such as Amazon, Alphabet's (GOOG +2.51%)(GOOGL +2.73%) 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
Live Nation Entertainment, 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.
NYSE: LYV
Key Data Points
Demand for live events remains strong, and Live Nation is benefiting. The company posted record results in the second quarter and said it sold more than 130 million tickets, up 6% from a year ago. The business still has a bright future ahead, considering the strong demand among millennials and Gen Z for spending on experiences, and its monopoly-like advantage should ensure superior margins.
5. iHeartMedia
Formerly known as Clear Channel, iHeartMedia 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.
NASDAQ: IHRT
Key Data Points
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 business returned to revenue growth in 2024 after a decline in 2023, though. In 2024, revenue rose 3% to $3.85 billion as the company benefited from political advertising in the second half of the year. 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.
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
Legacy record labels, such as Warner Records, Atlantic Records, Asylum, and Elektra -- all of which are owned by Warner Music Group -- 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.
NASDAQ: WMG
Key Data Points
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.
Through the first half of fiscal 2025, revenue has fallen 3% to $3.15 billion, though management said it's gaining market share in new releases. It's also facing difficult comparisons with its strong performance in the quarter a year ago.
As of October, Warner Music was close to an agreement with Netflix (NFLX -0.28%) to license its intellectual property for movies and documentaries based on its performers and songs, showing another way it can monetize its catalog.
Pros and cons 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 recorded music, even as the way we consume recorded music has changed significantly. Let's take a look at the pros and cons of music stocks.
Pros:
- 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.
Cons:
- 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.
Factors to consider when choosing music stocks
The music industry is in flux, but it's become clear where the growth is in the industry. Music streaming, like Spotify, is growing, as is the market for live entertainment, represented by Live Nation. That shows that, in addition to existing growth rates, future growth opportunities and trends need to be considered when investing in music stocks.
Music consumption has shifted from channels like terrestrial and satellite radio to internet-based streaming. That doesn't mean that stocks like SiriusXM and iHeartMedia are losers, but investors should consider the structural headwinds for those kinds of companies.
Valuation also matters, and some investors, including Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), see value in SiriusXM, in part due to its solid dividend yield. Investors will also want to consider the impact of technological changes or the loss of major artists. For example, the departure of Howard Stern could hurt SiriusXM's subscriber base.
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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.
- Search for the 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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