Fans are listening to Indie-label artists more than ever.
As part of the annual Indie Week event held by the American Association of Independent Music (A2IM) in New York, Luminate’s Haley Jones and Chris Muratore joined IndieDojo’s Bill Wilson for a presentation assessing the state of this vibrant segment of the industry.
The headline: Independent music is enjoying strong market share, accounting for 35% of total music consumption* in the U.S. year to date, according to Luminate data. The indie share of album sales is even larger, representing 40% of overall album sales year to date.
Country, Latin, Jazz and Dance/EDM songs from indie labels outpace the overall on-demand audio streaming indie label share of 35%, with all comprising more than 39% of their respective genres’ streams
While hip hop and pop still dominate overall share, the fact that independent artists in these four other genres command nearly two-fifths of all streaming traffic highlights their continued growth.
The music industry is experiencing a dramatic transformation as independent artists are capturing unprecedented levels of audience attention and revenue. Data from 2024 and early 2025 demonstrates that fans are indeed listening to independent-label artists more than ever before, marking a significant shift in how music is consumed, discovered, and monetized in the digital age.
Independent Artists Dominate Streaming Numbers
The most compelling evidence of this trend comes from streaming data. In the UK alone, independent artists accounted for 55% of total streams in the first quarter of 2025. This milestone reflects the sector’s remarkable growth and changing listener preferences toward more diverse, authentic musical content.
On Spotify, the world’s largest music streaming platform, independent artists and labels collectively generated more than $5 billion in 2024, representing approximately half of all Spotify royalties. This $5 billion figure represents a $500 million increase from 2023, demonstrating accelerating growth in the independent sector.
The mid-tier streaming market tells an even more compelling story. According to Luminate’s 2024 Midyear Music Report, 62.1% of artists who accumulated between 1 million and 10 million U.S. on-demand audio streams in the first half of 2024 were independent. This represents a significant shift from traditional major label dominance in these crucial streaming tiers.
More than 29,000 artists reached the 1-10 million streaming tier in the first half of 2024—an increase of approximately 1,400 compared to the second half of 2023. Similarly, the 10-50 million streaming tier now features over 5,000 artists, marking an increase of 267 artists from the previous period.
Global Market Share Growth
The independent music sector’s growth extends far beyond streaming platforms. Independent record labels now command substantial market share globally, with recent data showing they make up 46.7% of the global recorded music business based on ownership. This represents a significant increase from previous years and demonstrates the sector’s growing influence.
In terms of revenue contribution, independent labels generated 34.6% of all market share as of 2022, with some estimates putting their global market contribution at 37.6% and $5.6 billion to the industry. The growth trajectory suggests these figures have likely increased further by 2024.
Social Media and Discovery Platforms Fuel Growth
The rise of independent artists is intrinsically linked to new music discovery methods, particularly through social media platforms. TikTok has emerged as a powerful catalyst for independent music success, with 60% of the platform’s top 10 global songs in summer 2024 being independently distributed.
Notable independent hits that dominated TikTok included “Gata Only” by FloyyMenor and Cris MJ (distributed by UnitedMasters), which topped TikTok’s global chart with 15 million creations and surpassed 1 billion streams on Spotify. Tommy Richman’s “Million Dollar Baby (VHS)” ranked third globally on TikTok while topping the platform’s US chart.
Music discovery has fundamentally shifted toward social platforms, with 65% of music consumers reporting they discover new artists through independent music platforms or social media rather than traditional radio or TV. Among Americans who consider it important to keep up with music, 40% use Instagram, 36% use TikTok, and 32% use Facebook for music discovery.
The financial success of independent artists has reached remarkable levels. Nearly 1,500 artists generated over $1 million in royalties from Spotify alone in 2024, with 80% of these artists not having a song in Spotify’s Global Daily Top 50 chart. This demonstrates that success in the independent sector doesn’t require mainstream chart dominance.
The number of artists earning substantial amounts has surged dramatically. 22,100 artists earned over $50,000 on Spotify in 2024, a massive increase from just 7,400 artists in 2017. Artists earning over $500,000 rose by 205% during this same period.
Global revenue patterns show that 75% of artists’ royalties came from outside their home countries for those generating more than $1,000 in royalties, highlighting the international reach that streaming platforms provide to independent artists.
Challenges and Opportunities
Despite this growth, independent artists face significant challenges. With over 60,000 tracks uploaded daily to streaming platforms, competition for attention remains intense. The democratization of music distribution means that while barriers to entry have lowered, standing out in an oversaturated market requires sophisticated marketing and community-building strategies.
Monetization remains challenging, with streaming services typically paying between $0.003 and $0.005 per stream. This means artists often supplement streaming income through merchandise, live shows, licensing deals, and crowdfunding initiatives.
Physical music sales present both opportunities and obstacles. While vinyl sales have grown significantly—with 6.7 million vinyl albums sold in the UK in 2024 (a 9.1% increase)—only 12.8% of independent artists have released music on vinyl, with 54.4% citing production costs as the primary barrier.
The Future of Independent Music
The data overwhelmingly supports the statement that fans are listening to independent-label artists more than ever. This trend represents more than just changing consumer preferences—it reflects a fundamental restructuring of the music industry powered by technology, social media, and direct artist-fan relationships.
Independent artists benefit from greater creative freedom, higher revenue shares, and direct audience connections. For listeners, this translates to more diverse musical offerings, authentic artist interactions, and the discovery of unique sounds that might not emerge from traditional major label systems.
The rise of the “mid-tier artist”—those consistently earning millions of streams without major label backing—suggests a more sustainable and diverse music ecosystem is emerging. As streaming algorithms become more sophisticated and social media platforms continue to democratize music discovery, the trend toward independent music consumption appears likely to accelerate further.
This transformation represents one of the most significant shifts in music industry dynamics since the advent of digital distribution, fundamentally altering how artists build careers and how fans discover and consume music in the 21st century.