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Streaming Music Revenue Jumped in 2014, While Packaged CD Sales Declined Again, Says RIAA

The U.S. recording industry had the fifth straight year of “relatively flat revenues,” said a RIAA report, which pegged total 2014 U.S. recorded music revenue at $6.97 billion, versus $7 billion in 2013. Digital streaming retail sales surpassed CD disc…

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sales for the first time, as CD revenue fell 12.7 percent to $1.85 billion at retail value, while streaming revenue grew 29 percent to $1.87 billion, said RIAA. Streaming revenue growth had increased across the board, said RIAA. Paid subscription services jumped 25 percent year over year to $799 million, and revenue from ad-supported on-demand services grew 34 percent to $295 million. Digital downloads had the largest revenue share in the music industry last year at 37 percent, or $2.58 billion, an 8.7 percent decline from 2013, said the association. Sales of digital album downloads declined by 6.6 percent, while digital track sales dropped by 10.1 percent. The total value of digital downloads, subscriptions and streaming was $4.5 billion, a 3.2 percent increase over 2013, said RIAA. CDs were by far the highest percentage of physical media sales at 82 percent, but vinyl LPs continued their upward trend, jumping 49 percent to $315 million in 2014, said RIAA. Vinyl singles pulled in $5.9 million, music videos $90.5 million, DVD Audio $2.1 million and Super Audio CD $800,000, said RIAA. Total physical media sales were $2.72 billion, it said. By share, digital downloads had 37 percent of U.S. music industry revenue in 2014; physical media, 32 percent; streaming music, 27 percent; and ringtones, 1 percent, said RIAA.