RIAA: Streaming Accounts For 62% Percent Of Music Revenue

The Recording Industry Association of America’s midyear report shows the growth of streaming continues apace, with retail revenues up to $4 billion, 17% more than last year, while wholesale is up 14.6% to $2.7 billion.

With paid subscriptions rising to 30.4 million (up from 20.2 million in 2016), revenues from services like Spotify, Apple Music and Amazon are up to $1.7 billion, a rise of 61%, accounting for 43% of total revenue.  Overall, streaming accounted for 62% of industry revenue, followed by digital downloads (19%), physical (16%) and synch rights (3%). Total value of digitally distributed formats in the first half of the year was $3.2 billion, up 21% from last year, contributing 84% of total industry value.

According to Variety, physical product shipments decreased just 1% to $632 million, with CD revenue down 3% to $431 million, while vinyl continued its resurgence, up 3% to $182 million, comprising 29% of total physical shipments at retail value, their highest share since the mid-‘80s, when CDs quickly became dominant.

Commenting on the results, RIAA Chairman/CEO Cary Sherman remarked, “Our story continues to be one of great promise, but our footing is fragile, and a sustained, durable recovery is jeopardized by a fundamentally uneven playing field.”

With paid digital downloads steadily decreasing ($757 million, down 24% from last year’s six-month report) to a mere 19% of industry revenues (down from $1.5 billion at the six month mark in 2013), Sherman cites the contributions of record labels in spreading streaming, partnering with more than 400 services worldwide, pointing to the investment of $4.5 billion in “discovering, nurturing and promoting artists.”