State of the Music Industry 2026: Trends & Predictions

The music industry has made it through another year of ups, downs, and surprises. Although growth has slowed compared to previous years, it continues to move forward while constantly evolving. As 2026 begins, the industry finds itself in a period of adjustment, alongside growing questions around artificial intelligence, sustainability, fairness, and what the future of music should look like. What can artists expect from the year ahead, and which trends are likely to shape it?

Last year, we’ve spoken a lot about AI, a highly polarizing technology that some embrace and others vehemently reject. Although many artists and fans are vocal in their opposition to AI in music, the numbers show it is already widely present.

For instance, Deezer reported that by November 2025 it was receiving over 50,000 fully AI-generated tracks each day, making up around one-third of all new deliveries to the platform. At the same time, Spotify said it removed more than 75 million spam or low-quality tracks over a 12-month period as it strengthened protections against fraudulent and AI-related uploads. Looking at the numbers, it is clear that AI will continue to reshape the music industry in various ways and remain a widely discussed topic. So, what can we expect in 2026?

Let’s start with streaming platforms. Most services now accept AI-generated music, but they’re also implementing restrictions to protect artists and listeners alike. Deezer, for example, keeps fully AI-generated songs out of algorithmic recommendations and editorial playlists to prevent them from gaining more visibility than music made by real people. Additionally, it labels fully AI-generated songs as such to ensure greater transparency around AI use.

Spotify took similar steps in fall 2025 by rolling out stronger policies against unauthorized voice cloning and impersonation, new filters to catch spammy or fraudulent uploads, and support for industry-wide transparency & disclosure standards. The intention was to give artists more control over how AI intersects with their work while filtering out low-effort content and preventing AI-generated tracks from diluting the royalty pool.

The reason why transparency matters so much to listeners is because AI is becoming increasingly sophisticated, and studies and real-life examples show that it’s getting harder to distinguish AI-generated tracks from human-made music, even for listeners who think they can spot them. For instance, a 2025 survey by Deezer and Ipsos found that 97% of respondents failed to accurately assess whether the tracks they were shown are fully AI-generated or not. Most listeners were surprised by the results, and more than half said they felt uncomfortable with the findings.

Another striking example is the AI-generated band The Velvet Sundown, which released two albums in mid-2025 complete with a backstory and promotional images. The shock came when people who believed the band was real discovered it was entirely artificial, yet still convincing enough to rack up over a million monthly Spotify listeners. We can thus expect AI to continue improving throughout the course of the year, which means we’ll need to be more mindful about not getting tricked by bad actors, too.

So where does that leave us? One thing is clear: the debates around AI are far from over. We can expect more artists to embrace AI as a creative tool, using it to write lyrics, melodies, and arrangements, or to assist with these tasks. Others will continue to reject it entirely and double down on human-made art. This latter approach continues to have the support of a majority of both artists and fans.

Meanwhile, automatic mixing and mastering tools will continue to improve, making professional-quality production more accessible to creators without large budgets. For established professionals, however, this may make earning a living more challenging. As AI lowers barriers, competition increases, fewer clients may turn to traditional studios, and it could become harder for producers and engineers to maintain their place in the industry.

AI is increasingly shaping how we discover music. Tools like ChatGPT’s Spotify extension already allow listeners to explore tracks in a conversational way, hinting at entirely new methods for fans to find and experience music. Over time, these AI-driven tools could personalize listening more deeply than traditional algorithms, introducing fans to songs, artists, and niche genres they might never have encountered otherwise.

At the same time, AI is data-driven and tends to repeat patterns based on the inputs it receives, which can make it harder for smaller or emerging artists to break through. This is where human curation remains essential. DJs, curators, and playlist editors provide context, uncover unique tracks, and create listening experiences that AI alone cannot replicate, helping maintain diversity in taste and discovery.

Since we’re already talking about data, it’s worth addressing copyright and licensing, a pressing issue in the music industry. The rise of AI has raised several questions: Is AI being trained on copyrighted material without permission? Who owns AI-generated music? How should royalties be divided between human creators and AI contributions?

These questions are still evolving, and the industry is beginning to explore ways to respond. A recent example is the collaborative effort between Warner Music Group and Stability AI, which aims to advance responsible AI in music creation. By combining WMG's focus on principled innovation with Stability AI's expertise in commercially safe generative audio, the partnership represents an attempt to address some of these challenges and establish clearer standards for ethical AI use.

The bottom line is that the conversation around AI in music is far from over. If anything, it’s only just beginning, and the next few years will likely shape how artists, listeners, and platforms balance innovation with fairness and authenticity.

Our next prediction revolves around streaming and subscription fatigue. Streaming platforms have long faced criticism for underpaying artists, rising subscription costs, and, more recently, for loosening their rules around AI or including AI-generated tracks in playlists.

Another source of frustration for listeners is that they don’t actually own any of the music they pay to stream each month. It’s also about how people listen: often fast, algorithm-driven, and forgettable, much like content on social media. That’s why we believe physical formats like CDs, vinyl, and even cassettes might make a comeback as a reaction against consumerism and the intangible nature of streaming, since physical media and collectibles give listeners something permanent, something they can hold, display, and truly call their own.

Experts share similar views. In an interview with Hypebot, Romain Boudruche from We Are Rewind explains: “In 2026, we are clearly seeing the continued rise of nostalgic music formats. Vinyl has paved the way, but cassette tapes and CD players are now becoming a stronger cultural statement. Younger listeners are looking for tactile, intentional listening experiences that contrast with algorithm-driven streaming. (...) More broadly, we notice a cultural movement toward slowing down. People are seeking deeper engagement with the music they love, away from passive playlists. Cassette listening, with its linear nature, encourages exactly that: taking the time to listen to an album from start to finish, without skipping. This shift is influencing both device design and how artists think about albums as complete narratives.”

Even classic MP3 players are experiencing a bit of a revival, as fans look for ways to own music offline and reconnect with a more tactile listening experience. There is also an experiential side that streaming can’t replicate. Unboxing a record, flipping through liner notes, or admiring album art creates a connection to the music that goes beyond simply pressing play. Tangible formats bring back a sense of ritual and engagement that digital-only listening often lacks.

Moreover, we believe that limited editions, colored vinyl, and bundled releases, such as a CD with merch and digital codes, might become revenue drivers. Boudruche agrees: “Collectors and fans increasingly value physical objects that hold emotional meaning. Cassettes have become an accessible entry point for limited editions, artist collaborations, and exclusive releases. This trend strengthens the bond between artists and their audience and reintroduces the idea of music as a personal, tangible artifact, not just a digital file.”

The next trend worth watching in 2026 is the push toward higher‑quality audio. After years of anticipation, Spotify finally rolled out lossless streaming to its Premium subscribers in late 2025, letting listeners stream tracks in up to 24‑bit/44.1 kHz FLAC quality in more than 50 markets around the world. This puts Spotify more on par with rivals like Apple Music, Amazon Music, and TIDAL, which have offered lossless options for a while, and gives fans with better gear a reason to stick with or return to streaming. The same applies to spatial audio, which we’ll likely see more of this year.

For listeners who care about sound fidelity, lossless audio is a step toward recapturing some of the richness and detail that compressed formats lose. But to really hear the difference, you often need wired headphones or higher‑end speakers, because Bluetooth still doesn’t support true lossless quality. As fans grow more frustrated with subscription fatigue and the limitations of compressed streaming, these kinds of upgrades point to a deeper desire for quality and control over how we experience music.

Another trend we’re seeing in 2026 is that music is increasingly organized around emotions rather than genres alone. Throughout 2025, playlists on Spotify and other platforms began to lean heavily into emotional and mood‑based names and concepts, with curators crafting collections that reflect specific feelings, moments, or states of mind rather than genres.

This shift mirrors how listeners experience music today: it’s less about labels like pop or hip hop and more about how a track makes you feel. Interestingly, this focus on emotion also intersects with AI. AI can generate music that mimics moods and feelings, but there’s still something intangible about human‑crafted emotion that listeners recognize. Fans may gravitate toward songs and artists that convey authenticity, creating a space where real emotional expression in music becomes even more valuable.

Another trend shaping 2026 is a growing diversification in streaming, driven not just by pricing or features, but by ethics. More artists and listeners are paying attention to who runs the platforms they use, where the money goes, and what kinds of industries those companies are connected to. In some cases, this has led artists to remove their music and fans to rethink their subscriptions, even if it means switching services or juggling multiple platforms.

More broadly, this reflects a shift in how people engage with the music industry. Streaming choices are no longer just about convenience or catalog size, but also about values. For some listeners, supporting platforms that feel more artist-friendly, transparent, or ethically aligned is becoming part of how they choose where to listen. As a result, the streaming landscape is slowly becoming more fragmented, with space opening up for alternative platforms and more intentional listening habits.

Lower barriers to entry have made it easier than ever to start creating music, but they have also increased competition and introduced new challenges. Currently, there are more creators than ever. And while opportunities abound, sustainable paying work remains limited, particularly in areas like production, mixing, mastering, and songwriting.

As a result, a clearer divide is emerging between those who can sustain long-term careers and those who step back from professional ambitions altogether. At the same time, this has sparked a significant resurgence of hobbies. Many people are making music without the pressure to monetize it, treating it as a creative outlet rather than a career path.

Increasingly, creators are recognizing the stress that comes from trying to turn every hobby into income, and they are choosing to prioritize enjoyment and creativity over monetization. In that sense, not everything is moving toward professionalization; some of it is moving in the opposite direction.