Report: Market For Music Is Thriving

MusicWatch, a market research firm focused on music consumption trends, 50 million more Americans are buying music in 2024 compared to a decade ago, in 2014. This significant increase highlights a robust growth in the U.S. music industry, driven largely by the rise of streaming services, alongside continued interest in physical formats like CDs and vinyl, as well as digital downloads.

The report indicates that in 2024, approximately 132 million Americans aged 13 to 70—roughly half of that age demographic—paid for a music subscription, such as on-demand streaming services or satellite radio. 

This surge in music buyers far exceeds the U.S. population growth of about 19 million over the same period, suggesting that the increase isn’t just a result of more people but a genuine rise in interest and willingness to spend on music. In total, when factoring in various forms of music purchases (subscriptions, physical formats, and downloads), the number of music buyers in 2024 significantly outpaces the figures from 2014.

Spending on recorded music has also risen. In 2024, Americans spent an average of $112 per capita on recorded music, up from $80 in 2014 (about $91 when adjusted for inflation), marking a roughly 32% increase over the decade. This growth reflects not only more buyers but also higher spending per person, even as the industry has shifted away from digital downloads—which dropped from $2.3 billion in 2015 to $329 million in 2024—toward streaming. Meanwhile, live music spending saw an even steeper rise, increasing 17% from 2023 to $281 per capita in 2024, driven by strong demand for concerts despite some inflationary pressures on ticket prices.

Interestingly, older formats haven’t disappeared. Despite a 61% decline in CD sales over the decade, 56 million Americans still listen to CDs in their cars, and 48 million use digital downloads while driving, showing that these formats retain a substantial audience. Vinyl has also seen a resurgence, contributing to the overall growth in physical music purchases. However, piracy persists as a challenge, with 14 million Americans admitting to stream-ripping music files in 2024, though it’s less pervasive than it was 20 years ago.

The MusicWatch findings align with broader industry data, such as the Recording Industry Association of America (RIAA) reporting an average of 100 million music subscriptions in 2024, with satellite radio provider SiriusXM ending the year with 31.6 million self-pay subscribers.