According to the Recording Industry Association of America’s annual recorded-music revenue report, vinyl sales maintained their almost two-decade comeback with $1.4 billion in sales last year, while paid streaming subscriptions in the United States crossed the 100 million mark for the first time.
Even with that milestone, streaming growth is still slowing down; for the year, it increased by just 4 million, following a five-year trend of falling growth. Between 2020 and 2021, the number of streaming users increased by over 9 million. Because of this tendency, music corporations are looking for new ways to develop, such focusing on “superfans” and using strategies like Universal’s “Streaming 2.0.”
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According to the research, the recorded music industry in the United States is currently valued at $17.7 billion at retail and $11.3 billion at wholesale, with half a billion dollars in revenue since the previous year.
For the third consecutive year, streaming accounted for 84% of total revenues, with paid subscriptions, ad-supported services, digital and customized radio, social media platforms, digital fitness apps, and others totaling $14.9 billion. However, the revenue growth year over year was only 4%. At $11.7 billion, those 100 million paying streaming users generated almost two-thirds of total income.
Advertising-supported on-demand music services (including YouTube, Spotify’s ad-supported version, Facebook, and others) saw a 2% decline in income, coming in at $1.8 billion. Ten percent of all recorded music sales in 2024 came from ad-supported platforms.
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Revenues from digital and personalized radio music increased by 3% to $1.4 billion in 2024. The category comprises payments made directly by comparable services as well as SoundExchange distributions for earnings from services like Internet radio stations and SiriusXM. While other ad-supported streaming income of $306 million decreased 4%, SoundExchange distributions increased 5% to $1.1 billion.
$1.4 billion, vinyl achieved its greatest revenue since 1984 and nearly three-quarters of physical format sales in its 18th consecutive year of growth. It shipped 44 million vinyl records as opposed to 33 million CDs, outselling CDs for the third year in a row.
RIAA Chairman & CEO Mitch Glazier states, “Twenty years into the streaming era, over 100 million paid subscriptions now deliver two-thirds of industry revenues, a historic milestone powering America’s music economy forward.” “It’s a remarkable accomplishment by an industry that has effectively concentrated on its commercial and creative core by supporting cutting-edge new services, options, and experiences that truly add value for fans.”
Never before has music been so vibrant, captivating, and timely—reaching beyond our earphones with cultural touchstones that spark discourse, such as iconic halftime shows, landmark TV moments, or must-see movies and biopics. Furthermore, the commitment of American fans and superfans to the musicians they support portends an even more promising future as record companies seek to develop new avenues for artists to earn more money and a variety of revenue sources to increase the share of the pie for all parties involved in the music industry.
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