The U.S. recorded music industry experienced a slight year-over-year revenue increase of 0.9% in the first half of 2025, totaling $5.59 billion in wholesale value, according to the Recording Industry Association of America (RIAA)'s midyear report released Tuesday.
Notably, the RIAA has transitioned to wholesale reporting this year—aligning with global standards like the IFPI's—to better reflect industry economics, though it complicates direct comparisons to past retail-based figures.
Key Highlights:
- Paid Subscriptions Surge: Total premium music subscribers reached 105.3 million, a net addition of 6.3 million from H1 2024 (outpacing that period's +2.5 million growth). This drove subscription revenues up 6.3% YoY to $2.89 billion, crossing the 100-million milestone and underscoring sustained demand despite price hikes from platforms like Spotify.
- Streaming Overall: While subscriptions shone, other streaming categories (e.g., ad-supported and programmatic) saw declines, tempering the format's total contribution of ~$4.68 billion (84% of revenues, up ~3.8% YoY).
- Physical Sales Slump: Revenues from physical formats dropped significantly, with vinyl stabilizing at ~$457 million (over 75% of physical share) but CDs and other media declining amid market saturation and shifting consumer habits. This offset streaming gains, contributing to the muted overall growth.
RIAA CEO Mitch Glazier called the figures a "stable foundation," emphasizing music's value and U.S. artists' global dominance (one-third of worldwide streams). However, the report signals challenges ahead, including potential economic pressures and the need for innovation in non-subscription revenue streams. Full-year projections remain optimistic if H2 trends like major album releases (e.g., Taylor Swift) boost physical and streaming engagement.