US recorded music market posted a robust 18% growth rate in the first half of 2019

By Emmanuel Legrand

The US recorded music market has experienced a double digit growth rate during the first half of the year, with total income up 18% to $5.4 billion at retail ($3.5bn at wholesale value, up 16% year-on-year), according to statistics from the Recording Industry Association of America (RIAA).

  For RIAA Chairman and CEO Mitch Glazier, the half-year report card shows that the "streaming economy continues to accelerate, strengthen, and mature."

  Added Glazier in a blogpost: "Our mid-year report tells a great story and highlights how the music industry’s embrace of new platforms and technologies has fueled a huge amount of growth and excitement — and a gusher of great new options for fans everywhere."
 

  Revenue growth was driven by paid subscriptions, with for the first time the total number of subscribers to music streaming services exceeding 60 million users, at 61.1 million (up 30% year-on-year). Revenues from streaming music grew 26% to $4.3bn, with subscription revenues up 31% to $3.3bn.

Rise of paid subscriptions

  "Paid subscriptions alone made up 62% of overall industry revenues, and they accounted for 77% of US streaming music revenues for the first half of 2019," explained RIAA SVP, Research & Economics Joshua Friedlander. "The continued rapid increase in the number of paid subscriptions was the biggest driver of growth."



  However, while streaming revenues continued to increase, sales of digital downloads fell 18% in 1H 2019 to $462m. Individual track sales revenues were down 16.4% year-over-year to $225.6m, and digital album revenues declined 23% to $205.6m. The category accounted for just 8.6% of total industry revenues in 1H 2019.

  Net revenues from physical products grew 5% to $485m in 1H 2019, with vinyl albums up 13% to $224m (8.6m units, up 6%), but still only accounted for 4% of total revenues in 1H 2019.