The RIAA report shows that streaming services are driving the lion’s share of the surge in revenue, marking a 9.3% increase year-over-year.
The music industry is thriving.
The Recording Industry Association of America released its midyear report for U.S. recorded music on Monday. In the first half of 2023, music revenue skyrocketed as retail set a new record, posting $8.4 billion. The figure is a 9.3% leap from last year’s midyear revenue, reported at $7.6 billion. Similarly, wholesale figures were also up 8.2% year-over-year, jumping from $4.9 billion to $5.3 billion between 2022 and 2023.
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When breaking down the data, streaming is responsible for driving the lion’s share of the industry. Streaming accounts for 84% of revenue for the fourth consecutive year. These data include subscriptions, ad-supported services, digital and customized radio, and licenses for music on social media and digital fitness apps. The reports shows that 95.8 million people utilized streaming accounts in the first six months of the year. Overall, streaming netted $7 billion, reflecting a 10% increase from 2022.
Insiders are curious to see end of year numbers, following recent price hikes in streaming subscriptions implemented by Spotify and YouTube. However, the upward trend In revenue to this point suggest that they will have an effect on the overall revenue, as Apple Music and Amazon rolled out increases earlier in the year.
Perhaps most surprising, physical music products lept 5% to account for $882 million in revenue. The figure signals its highest mark since the first half of 2013. This is fueled by the resurgence of vinyl records and CDs, driven by Gen Z consumers. An earlier report from Luminate suggested that super fans are driving these numbers, as they are more likely than a casual fan to invest in physical music to support their favorite entertainers.
The rise in revenue reflects overall trends in the music industry. This summer superstars such as Beyoncé, Drake, and Taylor Swift have positioned themselves to set new touring revenue records while their music remains on steady loop across all streaming services.
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