Daily Management Review

Number of paid music services subscribers grows by a quarter in USA in 2019


03/05/2020


The American Recording Industry Association has published a report on the state of the US music industry in 2019. Its income grew by 11.7% compared to 2018, mainly due to streaming.



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According to the annual report of the American Association of Recording Companies, in 2019, revenue from the US music industry grew to $ 11.1 billion, which is 11.7% more than in 2018. Physical sales accounted for only 10% of total revenue. Streaming accounts for 79.5% of all music industry revenues, or $ 8.8 billion.

The streaming market in 2019 was twice as large as the entire US music industry in 2017. The streaming category includes many formats, including free versions with ads (for example, Spotify), premium subscriptions, as well as streaming radio services (for example, Pandora).

Income from premium subscriptions in 2019 grew by 25% and amounted to $ 6.8 billion. This is 61% of all recorded revenue from the US music industry last year. This amount also includes $ 829 million from the so-called limited subscriptions, for example, available only on mobile or limited in the catalog (this includes Amazon Prime and Pandora Plus). In total, in 2019 the number of paid subscribers of streaming services in the United States grew to 60.4 million people, which is 22.4% more than a year earlier, and 5.5 times more than in 2015.

Revenues from free advertising services grew by 20% to $ 908 million. Over 100 million users on these services listened to over 500 billion songs last year. Despite this, the share in total industry revenues was 8%. Revenues from digital and custom radio services fell 4% to $ 1.2 billion. This category includes Internet radio and other advertising streaming services.

Revenues from digital music sales decreased by 18%, to $ 856 million, and this is the first time since 2006, when sales on digital media amounted to less than $ 1 billion. Album sales decreased by 21% to $ 395 million, and individual songs - by 15%, up to $ 415 million

Revenues from physical sales fell by less than 1%, to $ 1.2 billion.

A 12% decline in CD sales, to $ 615 million, was supported by a 19% increase in vinyl record sales, to $ 504 million. This is the largest revenue from vinyl since 1988, and has been growing for 14 years.

source: riaa.com






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