The U.S. recorded music industry posted record revenues of $8.7 billion based on streaming and vinyl figures, according to the RIAA’s mid-year report, but growth was just 4% — half the 8% growth in 2023 — amid thousands of layoffs at record labels, a flattening streaming boom and talk of a “transformative moment” in the coming months and years.
Highlights include streaming accounting for nearly 84% of total revenue for the fifth year in a row, with paid subscriptions of $5.7 billion accounting for nearly two-thirds of total revenue at midyear and an average of 99 million plans, compared to 96.5 million in 2023. However, subscription growth is down significantly from previous years, rising by just 2.5 million when compared to 2023 (6.5 million), 2022 and 2021 (about 8 million each).
Vinyl sales grew 17% year-over-year to $740 million mid-year, accounting for three-quarters of total physical revenue; total physical revenue rose 13% year-over-year to $994 million. For the fourth year in a row, vinyl sales outsold CDs in terms of units (24 million versus 17 million); CD revenue was relatively flat at $237 million, according to the report.
Advertising growth was also slower than in previous years, with on-demand services like YouTube, the ad-supported version of Spotify, Facebook and others rising 2% to $899 million. These ad-supported services contributed just 10% of total recorded music revenue in the first half of the year, according to the report.
Digital and personalized radio sales rose 2% to $672 million in 2024, driven by SoundExchange’s distribution of revenue from SiriusXM and Internet radio stations, as well as direct payments from similar services. SoundExchange distributions grew 4% to $517 million, while other ad-supported streaming revenue of $155 million declined 3%.
“This report marks a milestone moment in recorded music with revenues reaching a record $8.7 billion for the first half of 2024 as the music ecosystem continues to grow and evolve to serve more fans. Through a variety of licensing avenues from fitness apps to short-form videos, artists and labels are embracing innovation with responsible partners so more Americans can engage with their favorite music however, when and where they choose,” said RIAA Chairman and CEO Mitch Glazier. “This sustained growth fuels innovation and reflects the incredible value of music, laying the foundation for a healthy creative ecosystem where the visions of artists and songwriters can thrive across generations.”
