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. Music stocks are publicly traded companies that make money in one way or another from the music industry.
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 2026
These are some of the best music companies in 2026:
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Spotify Technology (NYSE:SPOT) | $105.7 billion | 0.00% | Entertainment |
| Sirius XM (NASDAQ:SIRI) | $6.9 billion | 5.27% | Media |
| Sonos (NASDAQ:SONO) | $1.8 billion | 0.00% | Household Durables |
| Live Nation Entertainment (NYSE:LYV) | $34.1 billion | 0.00% | Entertainment |
| iHeartMedia (NASDAQ:IHRT) | $546.6 million | 0.00% | Media |
| Warner Music Group (NASDAQ:WMG) | $15.8 billion | 2.44% | Entertainment |
1. Spotify
NYSE: SPOT
Key Data Points
Spotify (SPOT +2.92%) 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 281 million, growing 12% in the third quarter of 2025. It had more than 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 -0.13%) 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
NASDAQ: SIRI
Key Data Points
As the only satellite radio provider in the U.S., SiriusXM (SIRI -0.77%) 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 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 third 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 +2.12%) Kuiper.
3. Sonos
NASDAQ: SONO
Key Data Points
NYSE: LYV
Key Data Points
Live Nation Entertainment (LYV +6.39%), 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 the third quarter and said it sold 150 million tickets, up 4% 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
NASDAQ: IHRT
Key Data Points
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
NASDAQ: WMG
Key Data Points
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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Future outlook for the music industry
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.
Technology is likely to continue to affect the music industry as well. That includes new devices for listening to music like smart speakers, potentially new ways to access music like virtual reality, and new ways to create music like artificial intelligence (AI).
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