U.S. Music Streaming Market Surpasses 100 Million Paid Subscribers

The Recording Industry Association of America (RIAA) has officially announced that the U.S. music streaming market has exceeded 100 million paid subscribers, as noted in their comprehensive year-end report for 2024. This milestone underscores the continuing evolution and significance of streaming in the music industry.

Impressive Growth in Recorded Revenue

As reported, the U.S. recorded music revenue reached a historic high of $17.7 billion. This growth is complemented by robust vinyl sales, which have surged to $1.4 billion in 2024. These figures illustrate a remarkable recovery from the pre-streaming era, characterized by significant challenges such as widespread music piracy that heavily impacted revenue for artists and record labels alike.

Streaming Growth Shows Signs of Slowdown

Despite these impressive figures, the RIAA’s report highlights a deceleration in streaming growth, which has now decreased to just 3%, down from 8% the previous year. This trend suggests that the streaming market is nearing saturation, limiting opportunities for new subscriber acquisitions. As a response, industry professionals are exploring options for increasing subscription prices and introducing premium tiers aimed at dedicated superfans.

Revenue Streams: Streaming vs. Physical Sales

Streaming continues to dominate the revenue landscape, contributing a substantial 84% to the overall market income, while physical sales maintain a steady 11%. In a notable trend, vinyl records have outpaced CD sales in both revenue and unit numbers for the year. Nevertheless, CD sales experienced a slight revival, increasing to 32.9 million units, up from 32.4 million in 2023. Overall, physical music revenue saw an improvement of approximately 5.4%, totaling just over $2 billion.

Decline in Digital Downloads

In contrast, digital download revenues continue to decline significantly, dropping by about 14.9% to approximately $369.7 million. This trend reflects the shifting consumer preferences towards streaming services, which have increasingly become the primary mode of music consumption.

“Twenty years into the streaming era, over 100 million paid subscriptions now deliver two-thirds of industry revenues, a historic milestone powering America’s music economy forward,” stated Mitch Glazier, CEO of the RIAA. “It’s an extraordinary achievement by an industry that has successfully focused on its creative and commercial core by championing innovative new services, options, and experiences that add real value for fans.”

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