By Haddon Libby
The economics of country music reflect a thriving industry propelled by streaming, live performances, and crossover appeal, a far cry from the modest landscape of fifty years ago..
In 2024, country music achieved 118 billion on-demand audio streams in the U.S., up from 113.1 billion in 2023, marking its second consecutive year surpassing 100 billion streams. Streaming is the dominant revenue source, with Spotify distributing $10 billion to the music industry in 2024, including over $5 billion to independent artists and labels. Chart-topping hits like Morgan Wallen’s “Last Night,” Shaboozey’s “A Bar Song (Tipsy),” and Beyoncé’s “Texas Hold ‘Em” drove streaming numbers, while Beyoncé’s Cowboy Carter led album charts. The genre’s streaming surge is powered by Gen Z and Millennials, who make up 50% of listeners, with platforms like TikTok turning tracks into viral sensations. This digital shift has democratized access, enabling new artists to bypass traditional gatekeepers and reach global audiences.
Live music is a cornerstone of the music style’s economic success. Festivals like Stagecoach, which outsold Coachella in last year, generate millions for local economies through tourism, job creation, and spending on accommodations and dining. Arena tours by Wallen (One Night at a Time), Luke Combs, and Post Malone (Big Ass Stadium Tour with Jelly Roll) attracted massive crowds across the U.S. Country’s live presence has expanded internationally, with Shania Twain performing at Glastonbury and the UK launching its first Country Airplay chart in 2024, topped by Conner Smith. While Nashville’s Grand Ole Opry remains a cultural hub, performances now span diverse markets, from urban centers to global stages, amplifying revenue.
Album sales, however, have plummeted. In 2024, digital album sales dropped to 1.7 million units, a sharp decline from 33.3 million a decade ago. Vinyl maintains a niche, accounting for 28.1% of album sales in 2023, but CDs fell from 63.9% in 2019 to 43% in 2023. Crossover albums by Beyoncé, Post Malone, and Kacey Musgraves, which blend country with pop, hip-hop, and R&B, have sustained sales by attracting diverse listeners. These projects highlight country’s evolving sound and its ability to draw new revenue streams from non-traditional fans.
Country’s mainstream appeal is a key economic driver. In 2023, the genre claimed the top three Billboard Hot 100 spots for the first time, a trend that continued in 2024 with songs like Chris Stapleton’s “White Horse” and Beyoncé’s chart-toppers. Artists like Post Malone, Shaboozey, and Lana Del Rey (teasing a 2025 country album) fuse genres, broadening the audience and boosting income. Yet, this crossover stirs controversy. Beyoncé’s Cowboy Carter faced pushback from traditionalists, and incidents like The War and Treaty encountering a racist prop at a festival underscore ongoing inclusivity challenges.
In 1975, country music’s economics were far simpler. Revenue stemmed from vinyl records, 8-tracks, cassettes, and radio royalties. Albums like Willie Nelson’s Red Headed Stranger and Dolly Parton’s Bargain Store sold through record stores, with no digital platforms. Radio, including the Grand Ole Opry broadcast, was the primary promotional tool, monetized through ads. Live performances were small-scale, held in honky-tonks, state fairs, or local venues, lacking the infrastructure for large festivals. The audience was predominantly white, working-class, and older, concentrated in the US South and Midwest. Crossover hits like Glen Campbell’s “Rhinestone Cowboy” were rare, and country had minimal global reach. Major labels like RCA and Columbia controlled the industry, with the Outlaw movement (Nelson, Waylon Jennings) just beginning to challenge Nashville’s polished sound. The music industry’s economic impact was a fraction of today’s $212 billion.
Comparing the eras, country music in 2025 thrives on streaming, global tours, and genre-blending, unlike 1975’s reliance on physical sales and regional audiences. Technology empowers new artists, with 25% of Spotify’s top earners in 2024 being new acts. Artists like Lana Del Rey and Sabrina Carpenter plan country projects, and AI-driven releases will diversify income. Country’s evolution from a niche genre to a global economic force positions it for further growth, provided it addresses inclusivity challenges within the $212 billion music industry.
Haddon Libby is the Founder and Chief Investment Officer of Fiduciary RIA firm, Winslow Drake Investment Management. For a free portfolio review, please visit us at www.WinslowDrake.com.
