Music sales in the US grew in the first half by 17 percent year-on-year to USD 4.0 billion, according to the latest data from Strategic Data Analysis RIAA. While sales were up, they were still significantly lower than in 1999, when digital formats took off. Music revenues were hoisted by streaming, which took 62 percent of the total market.
Revenues from streaming platforms rose 48 percent to USD 2.5 billion, including sales from subscription services (such as paid versions of Spotify, TIDAL, and Apple Music), digital and customised radio services including those revenues distributed by SoundExchange (like Pandora, SiriusXM, and other internet radio), and ad-supported on-demand streaming services (such as YouTube, Vevo, and ad-supported Spotify). Across all the categories of streaming (paid subscriptions, digital and customized radio, and on-demand ad-supported streams) record high revenue levels were reached.
Within streaming, paid subscriptions were the biggest driver of growth in the half, up 61 percent to USD 1.7 billion at estimated retail value,. Paid subscriptions were the largest format in the US accounting for 43 percent of total revenue, pushed by continued strong user increases. The number of paid subscriptions reached a record high of 30 million on average, meaning they grew by nearly 1 million per month as compared to year before. Revenues from “limited tiered” subscription services, such as from Amazon Prime or Pandora Plus, amounted to USD 225 milliony. Revenues from on-demand streaming services supported by advertising advanced 37 percent to USD 273 million.
Revenues from sales of digital tracks and albums continued to decline, with digital download revenues falling 24 percent to USD 757 million. Digital downloads only accounted for 19 percent of total industry revenues. They had been the largest format until 2015.
