Recently, music streaming services are developing remarkably, with Apple Music and Amazon Music HD supporting lossless audio at no additional cost. According to the US music industry overall revenue report for the first half of 2021 released by the American Recording Industry Association RIAA, music streaming services account for most of the industry’s overall revenue.
According to the RIAA, the total revenue of the US music industry in the first half of 2021 was $7.1 billion. Among them, streaming accounted for 84%, physical media such as CDs and records 10%, and download sales 5%.
Streaming revenue in the first half of 2021 is $5.9 billion, and streaming includes paid subscription services such as Apple Music and Spotify, ad-supported video delivery such as YouTube, and digital radio service. It accounts for 66% of the total revenue of the US music industry.
Looking at the trend of subscription service subscribers, the number of subscribers increased from 31.5 million in the first half of 2017 to 82.1 million in the first half of 2021. Actual media revenue for the first half of 2021 was $690 million. If you check the history, both CD and record revenues are increasing compared to the first half of 2020, but the record side is increasing more significantly.
If you look at the record from the first half of 2017 to the first half of 2021, it increased every year from $176 million in the first half of 2017, and exploded to reach $467 million in the first half of 2021. In response to this rapid increase in record revenue, the RIAA says that music fans are still appreciating the value of the records themselves, and that labels that handle records continue to offer options for music fans to meet demand.
In the earnings announcement, the RIAA revealed that it is moving to introduce a structure in which this profit can be returned to the artist as music is being handled in various scenes such as short videos, chatting apps, and social media. Related information can be found here.