Revenue from music-streaming platforms now accounts for three-quarters of the music industry’s top line, as subscriptions to services including Spotify Technology SA, Apple Inc., Amazon.com Inc. and others in the U.S. grew 42% in 2018 to top 50 million for the first time.
The music industry experienced its third consecutive year of growth in revenue from recorded music in the U.S., according to an annual report from the Recording Industry Association of America (RIAA).
“In 2018, revenue from recorded music in the United States grew 12% to $9.8 billion at estimated retail value,” the report states. “For the third year in a row, double-digit growth was driven primarily by increased revenues from paid subscription services including Spotify, Apple Music, Tidal, Amazon and others, which reached more than 50 million subscriptions in the United States for the first time. Revenues measured at wholesale value also grew 12% to $6.6 billion. Revenue growth from streaming formats continued to be offset by decreases from unit-based sales, including both digital downloads and physical goods.
Revenues from streaming music platforms grew 30% year-over-year to reach $7.4 billion, contributing 75% of total revenues for 2018, and accounting for virtually all the revenue growth for the year.
Adoption of paid subscription services continued to grow quickly in 2018. The average number of paid subscriptions (excluding limited tier options) grew 42% compared with the prior year, exceeding 50 million for the rst time ever. On average, more than one million new subscriptions were added on a monthly basis.
The year-end music industry revenue report was released by RIAA Chairman & CEO Mitch Glazier.