The Recording Industry Association of America (RIAA) released figures showing the music business did very well in the U.S. in 2018.
Double-digit growth was fueled primarily by streaming music revenue with Spotify (NYSE:SPOT) and Apple’s (NASDAQ:AAPL) Apple Music accruing paid subscribers.
In its newly released 2018 music industry revenue report, RIAA outlined U.S. music revenue performance where it’s coming from. The outlook for record labels, in particular, looks positive, according to the study.
Revenue from recorded music in the U.S. was up 11.9% in 2018, reaching $9.8 billion. Of that, $7.4 billion, or 75% of revenue, came from streaming music services, led by Spotify and Apple Music.
The RIAA says paid subscriptions rose 32% in 2018, to hit $5.4 billion, with the remaining $2 billion in streaming revenue coming from free, ad-supported sources.
For Apple, continued growth in paid subscription services is a win. The company is trying to grow its services revenue to make up for softening iPhone demand, with Apple Music a big part of the strategy.
Source: Investor Place