2023 saw solid growth in recorded music revenues in the US for the eighth year in a row. Total revenues grew 8 per cent to a record high of $17.1 billion estimated retail value.
Physical music sales have seen a resurgence in recent years, with a lot of the attention going towards vinyl, however, streaming remains to the biggest driver of growth in the industry. This is thanks in part to record levels of engagement from paid subscriptions and growth in ad-supported revenues.
Streaming
For the second year running, streaming services made up 84 per cent of total music revenues in 2023. 78 per cent of all streaming revenue came from paid subscriptions, which brought in $11.2 billion dollars.
Music revenues from advertisement-supported on-demand services, such as YouTube and the the ad-supported version of Spotify, grew at a slower pace than previous years, increasing by 2 per cent to $1.9 billion, contributing 11 per cent of the total recorded music revenues.
Digital downloads
The revenues from digitally downloaded music continued to fall, down 12 per cent to $434 million in 2023.
Just 3 per cent of US recorded music revenues in 2023 came from digital downloads, a significant drop from a peak of 43 per cent of revenues in 2012 just over a decade ago.
This is perhaps not all that surprising, considering the rise in physical media and a change in ideas surrounding the value of ownership and accessibility.
Physical formats
2021 saw an impressive reemergence for physical music formats and this growth is continuing.
Total physical revenues increased by 11 per cent from the previous year, reaching a total of $1.9 billion. Vinyl record sales accounted for 71 per cent of all physical music revenue and grew by 10 per cent to $1.4 billion, marking 17 years of consecutive growth.
This marks only the second time since 1987 that vinyl albums have outsold CDs in units, amassing 43 million sales compared with CD's 37 million. CD still performed well in 2023, however, with sales of the format up by 11 per cent to $537 million.
MORE:
The vinyl revival continues as sales hit their highest levels in decades
Vinyl sales officially trumped CDs for a second year in a row
When What Hi-Fi? wasn't What Hi-Fi? any more – a look back to our July 2001 issue
