New information this week from the Recording Business Affiliation of America highlights that streaming continues to develop and dominate extra of the music business income. Apparently, the info additionally highlights the continued resurgence of vinyl. In truth, in 2022, the RIAA says that vinyl data outsold CDs in models for the primary time in a long time…
In whole, the RIAA says that music income in the US grew by 6% in 2022, to a brand new report excessive of $15.9 billion. This marks the sixth 12 months in a row of progress for the business. In whole, streaming accounted for 84% of that income, adopted by bodily gross sales at 11%, digital downloads at 3%, and synchronization royalties at 2%.
Right here’s the breakdown of that streaming and bodily income:
- Bodily merchandise: $1.7 billion (up 4% year-over-year)
- CDs: $483 million (down 18% year-over-year)
- Vinyl: $1.2 billion (up 17% year-over-year)
- Streaming: $13.3 billion (up 7% year-over-year)
- Paid subscription companies: $10.2 billion (up 8% year-over-year)
- Restricted-tier subscriptions (companies restricted by issues like cellular entry, catalog availability, and so forth): $1.1 billion (up 18% year-over-year)
- Advert-supported streaming: $108 billion (up 6% year-over-year)
In accordance with the RIAA, the common variety of streaming subscriptions for the 12 months grew 10% to 92 million, in contrast with a mean of 84 million for 2021. “These figures exclude limited-tier companies, and rely multi-user plans as a single subscription,” the RIAA provides.
For digital downloads (corresponding to these by way of iTunes):
Revenues from digitally downloaded music continued to say no in 2022, down 20% to $495 million. Each digital album gross sales and particular person observe gross sales have been down 20% to $242 and $214 million respectively. Downloads accounted for simply 3% of U.S. recorded music revenues in 2022, down from a peak of 43% of revenues in 2012.
And for bodily codecs:
Revenues from bodily music codecs continued to develop after their exceptional resurgence in 2021. Complete bodily revenues of $1.7 billion have been up 4% versus the prior 12 months. Revenues from vinyl data grew 17% to $1.2 billion – the sixteenth consecutive 12 months of progress – and accounted for 71% of bodily format revenues. For the primary time since 1987, vinyl albums outsold CDs in models (41 million vs 33 million). After a 2021 rebound versus the Covid impacted 2020, revenues from CDs fell 18% to $483 million in 2022.
9to5Mac’s Take
I at all times discover this information from the RIAA attention-grabbing. It’s under no circumstances stunning that streaming continues to develop. One factor I do wish to watch by means of the remainder of this 12 months is how massive of an impression Apple Music’s latest value enhance could have on whole streaming income for the business.
Neither the RIAA nor Apple itself breaks down what number of subscribers every particular person service has. For Apple Music, the final official replace was manner again in June 2019, when the service hit 60 million paying subscribers.
Lastly, I actually hope that we additionally see streaming companies like Apple Music and Spotify enhance the royalty charges they pay to artists this 12 months. As touring prices proceed to rise, placing a pressure on even the world’s greatest bands, rising streaming royalties may go a good distance towards serving to artists.
Apple, after all, is already considerably higher than Spotify in paying artists a minimum of considerably truthful royalty charges.
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