U.S. Recorded Music Revenues Reach All-Time Mid-Year High Of $8.4 Billion

The music industry has hit new revenue milestones, according to new data released by the Recording Industry Association of America.

RIAA data for mid-year 2023 reflect the ninth consecutive year of growth, with total revenues up 9.3 percent at estimated retail value. This marks an all-time first-half high of $8.4 billion as paid subscriptions remained the strongest driver, accounting for 78 percent of streaming revenues.

“This report describes a thriving, growing music ecosystem that continues to reach new heights and shape our culture,” said RIAA chairman and CEO Mitch Glazier. “And it reflects the creative human genius and hard work of all the artists, songwriters, labels, publishers, and services who make the music happen and meet fans and audiences where they are in today’s forward looking and innovative music community.”

Streaming remains the dominant form of music consumption in the United States, responsible for 84 percent of total recorded music revenues in the U.S. and growing 10.3 percent to $7 billion. Paid subscriptions topped 11 percent growth over the first half of this year. During the past five years, the number of people paying for music subscriptions has more than doubled.

Physical formats have now reached their highest level since the first half of 2013 with total revenues up 5 percent over 2022 at $882 million. Vinyl maintains its popularity, reaching $632 million for the first half of 2023 and accounting for 72 percent of all physical music sales.

Among other report highlights:

• Growth in revenues from paid subscription services outpaced the growth in the number of accounts. Total revenue from paid subscription services grew 11 percent to $5.5 billion, compared with 6 percent growth for the number of accounts. Nearly two-thirds of total revenues – and more than three-quarters of streaming revenues – came from these paid subscription services.
• The number of paid subscriptions to on-demand music services continued to grow, but the pace was lower than in prior years. The average number of subscriptions through the first six months of 2023 was 95.8 million, compared with 90.0 million for the first half of 2022. These figures exclude limited tier services and count multi-user plans as a single subscription.
• Revenues from digitally downloaded music continued to decline in the first half of the year, down 12 percent to $225 million. Digital album sales were down 12 percent to $107 million while individual track sales were down 14 percent to $97 million. Downloads accounted for just 3 percent of U.S. recorded music revenues in first-half 2023.

Read the full report here.