The Recording Industry Association of America (RIAA) has released its mid-year report for 2024, revealing a positive outlook for the recorded music industry in the U.S.. With a 4% increase in revenues, the industry has reached an estimated retail value of $8.7 billion in the first half of 2024. Streaming continues to be the driving force behind this growth, contributing to the highest number of music revenue sources in history- contributing approximately 84% of total revenues for the fifth consecutive year.
The first half of 2024 saw streaming revenues grow 4% at retail value, reaching a record high of $7.3 billion. Paid subscription services were a significant factor in this growth, generating $5.7 billion in revenue and accounting for 78% of streaming revenues. This highlights the continued preference for premium, ad-free listening experiences among music fans.
The number of streaming subscriptions also saw an increase, growing 3% to 99 million. This figure excludes limited-tier services and counts multi-user plans as a single subscription. The growing number of subscriptions indicates that more Americans are finding added value in music, reinforcing the role of streaming in the modern music landscape.
However, not all areas of streaming experienced the same level of growth. Limited-tier subscriptions, such as Amazon Prime and Pandora Plus, fell by 4% to $503 million. Additionally, ad-supported on-demand services like YouTube and Spotify’s free version grew only 2%, generating $899 million and contributing 10% to total mid-year recorded music revenues.
Digital and customized radio revenues, which include services like SiriusXM and internet radio, grew by 2% to $672 million. SoundExchange distributions, a key component of this revenue stream, increased by 4% to $517 million. However, other ad-supported streaming revenues fell by 3%, reaching $155 million.
Vinyl Surpasses Other Physical Formats
Physical music formats continue to defy the digital era, with vinyl leading the charge. Vinyl sales grew by an impressive 17%, generating $740 million and accounting for three-quarters of all physical format revenues. Vinyl outsold CDs for the fourth consecutive year, with 24 million units sold compared to 17 million CDs.
Overall, revenues from physical music formats increased by 13%, reaching $994 million. This trend underscores the enduring appeal of tangible music collections, especially vinyl records, which have become a cultural and aesthetic statement for many music enthusiasts.
Digital Downloads Continue to Decline
In contrast to the growth seen in streaming and physical formats, digital downloads continued their downward trajectory. Accounting for just 2% of US recorded music revenues in 2024, digital downloads are in decline for the 14th straight year. Digital album sales dropped to $88 million, while individual track sales fell to $82 million according to the RIAA.
A Growing, Diversified Industry
The RIAA’s mid-year 2024 report highlights the evolving landscape of the recorded music industry. Streaming remains at the forefront, but vinyl’s resurgence and the persistence of physical formats show that there is room for multiple avenues of music consumption. While digital downloads continue to fade, the industry is benefiting from a diverse range of revenue streams, leading to record highs in both retail and wholesale value.
With a 4% growth in recorded music revenues and streaming subscriptions reaching new heights, the industry is poised for continued success in 2024 and beyond.
Read full RIAA Mid-year 2024 report here.
