U.S. Recorded Music Hit Record $8.7 Billion in Mid-Year Revenue, But Growth Is Just 4%: RIAA Report

The U.S recorded-music industry posted record revenue of $8.7 billion based on solid streaming and vinyl numbers, according to the RIAA’s mid-year report, but growth was just 4% — half of the 8% growth of 2023 — amid thousands of layoffs at labels, a leveling-off of the streaming boom and talk of a “transformational moment” in the months and years to come.  

Notable points include streaming comprising approximately 84% of total revenues for the fifth straight year, with $5.7 billion in paid subscriptions accounting for nearly two-thirds of total mid-year revenue and averaging 99 million plans, compared to 96.5 million in 2023.; however, subscription growth was down significantly from previous years, up just 2.5 million when compared year over year with 2023 (6.5 million), 2022 and 2021 (around 8 million each).

Vinyl grew 17% year over year, racking up $740 million at mid-year and accounting for three-quarters of total physical revenues; total physical revenues were up 13% year over year to $994 million. For the fourth consecutive year, vinyl outsold CDs in units (24 million vs. 17 million); revenues from CDs were relatively flat at $237 million, according to the report.

Advertising growth was also slower compared with previous years, in on-demand services like YouTube, ad-supported version of Spotify, Facebook and others, up 2% to $899 million. These ad-supported services contributed only 10% of total recorded-music revenues for the half year, according to the report.

Digital and customized radio grew 2% to $672 million in 2024 with SoundExchange distributions for revenues 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 revenues of $155 million were down 3%.

“This report marks a landmark moment in recorded music with revenues hitting a record $8.7 billion for the first half of 2024 as the music ecosystem continues to grow and evolve to deliver for even more fans. Spanning multiple licensing avenues from fitness apps to short-form video, artists and labels are embracing innovation with responsible partners so more Americans can engage with their favorite music however, whenever and wherever they choose,” said RIAA Chairman & CEO Mitch Glazier. “This sustained growth fuels innovation and reflects music’s incredible value, laying the foundation for a healthy creative ecosystem where artists’ and songwriters’ visions can flourish over generations.”