Report: 75 percent of music industry revenue now comes from streaming

Report: 75 percent of music industry revenue now comes from streaming
UPI

Sept. 21 (UPI) — Streaming now accounts for 75 percent of music industry revenue, according to data released by the Record Industry Association of America.

The streaming revenue represented a 28 percent year-over-year increase, amounting to $3.4 billion during the first half of 2018.

Those numbers various forms of streaming, including paid services like Amazon and Apple Music, digital radio like SiriusXM and other Internet stations, as well as ad-supported, on-demand sites like YouTube and Vevo.

Spotify and Pandora, which offer both paid and ad-supported versions, are also included in the streaming revenue amounts.

Although many sites offer free music accompanied by ads, the RIAA report says the paid subscription services are seeing the highest revenue increase with a 33 percent year-over-year growth, amounting to $2.5 billion.

“Paid subscriptions have become the biggest format for music by revenue,” the report states. “Despite far few users, subscription streaming vastly out performed ad-supported revenues.”

As more and more people listen to music via streaming services, CDs are dying out, falling 41.5 percent during the first half of 2018.

However, vinyl has actually increased by 12.6 percent as hobbyists and music aficionados have been buying the retro product in growing numbers.

Last year, vinyl sales hit a 25-year high.

For now, CDs are still outselling vinyl. During the first half of this year, CDs accounted for about $246 million in sales, compared to $199 million for vinyl.

But if the current pace continues, vinyl could be the top-selling physical form of music by next year.

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