Streaming drives first back-to-back growth in US since ‘99

A draft midyear report from theRecording Industry Association of America (RIAA) states spending on recorded music in the US was up 8.1% to US$3.4 billion in the first half of 2016.

The RIAA predicts the US industry is slated to achieve its first back-to-back growth since 1998-1999, following last year’s uptick.

According to the report obtained by Bloomberg, the industry can thank streaming services like Spotify and Apple Music. US streaming revenue was up 57% in the first half of the year, to US$1.6 billion. Meanwhile, ad-supported streaming grew 24% to US$195 million.

Streaming accounted for over 50% of industry sales, and similar to the RIAA’s 2015 report, more than countered double-digit drops in physical sales as well as album and single downloads. Physical music sales dropped by 14%.

According to Bloomberg, the US industry is still a way off from declaring a recovery post-1999. Past RIAA data has seen annual sales hit around US$7 billion, approximately 50% less than annual revenues generated in 1999.