RIAA: Total Revenues Up 8.1% To $3.4 Billion, Streaming Up 56% To $1.6 Billion
September 20, 2016 at 1:16 PM (PT)
The RECORDING INDUSTRY ASSOCIATION's Midyear Shipment and Revenue Report came out today, and things are looking up for the music business, with total revenues, physical and digital, up 8.1% from last year to $3.4 billion, fueled by a rise in streaming, up 56% to $1.6 billion. Wholesale revenues were up 5.7% to $2.4 billion, marking the strongest industry growth since the late '90s. For the whole report, click here.
Streaming revenue of $1.6 billion represented 47% of industry revenues, compared to 32% in the first six months of 2015, a category which includes revenues from APPLE MUSIC, TIDAL and paid versions of SPOTIFY, streaming radio service revenues distributed by SOUNDEXCHANGE (like PANDORA, SIRIUSXM and other Internet radio), and other non-subscription on-demand streaming services (YOUTUBE, VEVO and ad-supported SPOTIFY). First-half revenues from paid subscription music streaming services surpassed $1 billion for the first time, growing 112% to $1.01 billion. Subscriptions alone accounted for 30% of industry revenues for first-half 2016, with the number of paid subscriptions growing 101% to average 18.3 million. That revenue growth more than offset the declines from physical sales and permanent digital downloads.
The total value of digitally distribugted formats was $2.7 billion, up 16% compared to 2015, with digital accounting for 80% of the overall market by value, compared with 74% last year. Revenues from digital downloads declined 17% to $1 billion. The total value of digital albums was $500 million, down 11%, while digital album units were down 15% to 48.2 million. Digital track sales declined 22% to $520 million, with sales volume down 22% to 432 million units. The total value of physical shipments was $672 million, down 14% vs. last year. CDs made up 66% of total physical shipments by value, while vinyl albums were down 6% by value for the first half of the year, and accounted for 31% of physical shipments by value. Synchronization royalties were $100 million, virtually flat from last year.
For the first time, paid subscriptions were virtually even with paid downloads as the biggest single format revenue source. Streaming represented 47% of the total pie, with permanent downloads 31%, physical product 20% and synchs at 3%.