Streaming Is 75% of US Music Revenue, Says RIAA; Chief Disses 'Stream-Ripping'
Revenue from streaming music platforms in the U.S. jumped 30 percent to $7.4 billion in 2018, contributing three-quarters of industry sales, while downloaded tracks and albums fell for the sixth straight year to $1.04 billion, RIAA reported Thursday. Streaming services…
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comprised virtually all industry revenue growth for the year from paid subscription services, advertising-supported on-demand services such as Spotify, and from streaming radio companies, including those that distribute revenue through SoundExchange, such as SiriusXM and Pandora. Adoption of paid subscription services grew 42 percent, passing 50 million subscribers for the first time, RIAA said. Services averaged 1 million new subscriptions per month. Total 2018 subscription revenue rose 32 percent to $5.4 billion, including $747 million revenue from “limited tier” paid subscriptions, such as Amazon Prime and Pandora Plus. Permanent album downloads fell 25 percent to $500 million, and individual track sales slid 28 percent to $490 million. At just over $1 billion, downloaded tracks and albums were 11 percent of total 2018 revenue vs. 42 percent in 2013. Revenue from physical products shipments dropped 23 percent to $1.15 billion, with CD revenue falling 34 percent to $698 million, their first sub-$1 billion year since 1986. Vinyl records tallied $419 million, 8 percent higher than the prior year and the highest since 1988. Vinyl generated more than a third of physical-format revenue. There's "rejuvenation in the industry," blogged RIAA CEO Mitch Glazier. Yet "many challenges" remain as nearing $10 billion in revenue "only returns U.S. music to its 2007 levels," he wrote. "Stream-ripping, and a lack of accountability for many Big Tech companies that drive down the value of music, remain serious threats as the industry strives for additional growth." For the Internet Association, "it's great to see the music industry acknowledge that internet-enabled music distribution is a bright spot," an IA spokesperson emailed. "Internet innovation has fostered a record bounceback for the music industry, and our members are proud of the work they do to enable more consumers to legally enjoy music to the benefit of everyone in the ecosystem."