Last year in the US, paid streaming subscriptions surpassed 100 million for the first time ever while vinyl revenue was the highest it has been since 1984, according to the 2024 report published yesterday by the Recording Industry Association of America (RIAA).
The annual report, which includes direct reporting from independent labels for the first time, shows that total music revenue in the US grew by 3 per cent last year – to $17.7bn – with the growth down to increases in both streaming and physical format revenue compared to 2023.
The former, unsurprisingly, makes up the lion’s share of that total figure ($14.9B), thanks predominantly to paid subscriptions ($11.7bn) – the majority of the rest comes from things like ad-supported services (such as free YouTube Music and Spotify tiers), digital and customised radio (including SoundExchange distributions for revenues from services like SiriusXM and internet radio stations), and social media platforms. But while streaming avenues dominate revenue share, perhaps surprising is that physical format revenue actually saw larger growth in 2024 – 5.4 per cent compared to 3.6.
Of course, that is largely courtesy of the continuing – increasing, even – popularity of vinyl. Indeed, records have clocked their eighteenth consecutive year of revenue growth, with 2024’s $1.4bn figure the highest revenue has been in 40 years. It counts for almost three-quarters of the year’s total physical format revenue ($2bn), with CDs making up $541m (also a small increase over 2023’s revenue). Somewhat correlating to those revenue figures, vinyl albums (44m) outsold CDs (33m) in units for the third year in a row.
Interestingly, while comprising a tiny percentage of overall physical format revenue, the 'Other Physical' format category, which represents CD and vinyl singles, cassettes, DVD Audio and SACD, saw a growth of over 50 per cent from 2023.
Digital downloads continue their fall from grace since their peak of 43 per cent of revenues in 2012 – following another 18 per cent decline to $336m, they now account for only 2 per cent of total US music revenue.
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