WASHINGTON D.C. (CelebrityAccess) — The Recording Industry Association of America released its mid-year report, revealing that recorded music continues to set revenue records in the first half of 2023.
According to the RIAA, total revenues for the sector grew by 9.3% to an estimated retail market value of $8.4 billion, an all-time high for the sector.
Unsurprisingly, growth in recorded music continues to be driven by streaming, which made up 84% of total recorded music revenues in the U.S. in the first half of 2023. Streaming revenues grew by 10.3% year over year and generated 7 billion in revenue in the first half of the year.
Paid subscriptions to streaming platforms continued to be a key driver of the results, accounting for 78% of streaming revenues, the RIAA said, increasing by $550 million and averaging nearly 96 million subscriptions during the period.
Additionally, growth from paid subscriptions outpaced growth in new accounts, and total revenue from paid subscription services grew 11% to $5.5 billion, compared with 6% growth for the number of accounts.
Physical product also showed some signs of life and according to the RIAA, revenues from physical sales reached their highest level in a decade in the first half of the year. The RIAA reported that while streaming remains the dominant form of music consumption, physical revenues grew by 5% during the period, generating $882 million in revenue. Vinyl continues to be popular with music fans, accounting for 72% of all physical music sales with revenue of $632 million for the first half of 2023.
“This report describes a thriving, growing music ecosystem that continues to reach new heights and shape our culture. 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,” stated RIAA Chairman & CEO Mitch Glazer.
