RIAA: Total Revenues Up 8.1% To $3.4 Billion, Streaming Up 56% To $1.6 Billion

RIAA

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%.

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