US recorded music hits $4.6b in mid-2018 mark as paid subscription numbers leap 47%

Figures released by the Recording Industry Association of America (RIAA) showed that the US recorded music sector is in full flight.

In the mid-year mar, its revenues were at $4.6 billion.

The RIAA trumpeted: “Music continues its comeback story, powered by great new music, talented artists and a re-invented record industry.”

Streaming now accents for 75% of US revenue, and sales make up 22% — of these, 12% from downloads, 10% from physical and 3% from synchronization.

The major growth factor was escalating paid subscription numbers for streaming services, which showed a 47% growth in the first six months of this year.

The RIAA warned that the success of steaming and the range of music choices competing for the user’s attention for the 70,000 albums released in this period, also created challenges for the industry.

Of the key figures in the report:

• The 2018 figure was a 10% increase over the $4.18 billion generated in the first half of 2017.
• Paid subscribers now number 46.3 million, a 15 million take-up since 2017 mid-year.
• Streaming by itself generated revenue of $3.35 billion, up 28.4% from the $2.83 million in the first half of 2017.
• Within that figure, paid subscriptions were $2.55 billion (up 33.3%) while ad-supported revenue was nearly $498 million which was a 15.6% rise.
• Synchronisation royalties paid to record companies were up 10.8% to $131 million.
• Digital download revenue was down 26.5% to $562.2 million, with digital singles dropped 27.6%.
• Physical sales fell 24.9% to $461.6 million – with CD sales a sharp drop by 41.5% to $245.9 million revenue and 18.6 million units.
• Vinyl albums shifted 8.1 million in the first half (up by nearly a million records) and made up total revenue of $198.6 million (up 12.7%).