Streaming now accounts for 75% of US music business income

Vinyl gross sales additionally proceed to extend.

Streaming now makes up 75% of US music business income, in line with the most recent year-end report from the Recording Industry Association of America (RIAA).

According to the report, general revenues from recorded music elevated by 12% to $9.eight billion in 2018, with development pushed by paid subscriptions to providers together with Spotify, Apple Music and Amazon. Revenues from streaming rose 30% to $7.four billion, with streaming service subscriptions making up over half of that quantity.

However, income from providers supported by promoting accounted for simply $760 million of the full streaming earnings, regardless of streaming over 400 billion tracks to listeners throughout the US. This whole is greater than a 3rd of the estimated 1.2 trillion streams within the nation in 2018, however made up simply eight% of the yr’s whole income.

The outlook for digital downloads continues to look grim, because the struggling format’s earnings declined for a sixth consecutive yr to make simply $1.04 billion. Although bodily gross sales additionally fell to $1.15 billion, vinyl gross sales elevated by eight% on 2017, making $419 million – the format’s highest since 1988.

However, the full determine of $9.eight billion remains to be significantly decrease than the business’s earnings in 1999, when it reached a 25-year high of $14.6 billion.

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