The New Rules of Music’s Growth Engine: Insights From MIDiA’s Merch & Ticket Buyer Survey

Key Takeaways

• Gen Z prefers hoodies, posters, jewellery over t‑shirts
• Hip‑Hop/R&B fans spend above‑average on merch
• Merch affordability concerns rise among half of buyers
• On‑demand merch startups enable niche artist sales
• Boutique merch agencies help create bespoke products

Summary

MIDiA Research reports that expanded‑rights revenue – merch, physical music and live tickets – surged 21.5% in 2025, outpacing all other music income streams. A survey of 1,000 U.S. fans shows Gen Z demanding more diverse, subtle merchandise such as hoodies, posters and jewellery, while mainstream t‑shirts lose appeal. Hip‑Hop and R&B fans not only dominate purchase volume but also spend above‑average across merch, physical releases and tickets. The findings signal a shift toward boutique, on‑demand merch solutions and heightened expectations around value and authenticity.

Pulse Analysis

The recorded‑music industry’s growth engine is rapidly shifting from traditional streaming royalties to what analysts call "expanded rights" – the combined revenue from merchandise, physical formats and live‑event tickets. MIDiA’s latest market‑share report shows a 21.5% year‑over‑year increase in this segment for 2025, dwarfing gains in streaming and publishing. This surge reflects both the rising cost of touring and fans’ willingness to invest in tangible connections with artists, positioning merch and live experiences as the new profit pillars for labels and management firms.

A deeper dive into consumer behavior reveals a generational sophistication that is reshaping product expectations. Millennials and Gen Z buyers, raised on algorithmic feeds and instant e‑commerce, now demand a broader, more personalized merch palette – from hoodies and keychains to niche items like incense or home fragrance. At the same time, fandom is fragmenting; while half of respondents still gravitate toward well‑known acts, younger cohorts are increasingly supporting underground and niche artists. This environment fuels the rise of boutique merch agencies and on‑demand production platforms that can deliver low‑volume, high‑customization runs without prohibitive costs, allowing even indie musicians to meet sophisticated fan tastes.

Genre dynamics add another layer of opportunity. Hip‑Hop and R&B not only command the largest share of merch, physical music, and ticket buyers but also generate above‑average spend, eclipsing traditional powerhouses like Pop and Rock. For labels, this means reallocating marketing budgets toward these high‑value segments and forging partnerships with creators who can authentically translate cultural relevance into merchandise. However, nearly half of surveyed fans view merch as increasingly unaffordable, and 39% feel exploited, underscoring the need for transparent pricing and fan‑first strategies. Brands that prioritize genuine engagement over pure extraction will build lasting loyalty, turning fandom into a sustainable revenue engine.