The official global trade indicators of IFPI for recorded music in 2024 are expected tomorrow (March 19), and MBW is hearing rumors of positive news, particularly in the realm of paid music services, with users reportedly surpassing 750 million worldwide.
However, before that, one particular statistic will catch the eye: the least than inciting causes.
Streaming Revenue Growth
According to new data published by RIAA today (March 18), recorded income from music streaming in the United States—the world’s largest music market—grew by only 3.6% year in 2024, totaling $14.88 billion.
Considering that inflation in the USA is hovering around 3% over the past year, this figure may not excite industry observers.
Moreover, Spotify raised the price of its individual premium subscription in the United States to $11.99 last summer.
The overall performance of streaming income in the US market in 2024 was impacted by revenue from ad-supported music services, including YouTube and Spotify’s ‘Freemium’ tier.
Combined, these platforms saw a contribution to the recorded music industry’s revenue in the USA decline by 1.8% year, dropping to $1.83 billion.
In contrast, “paid” subscriptions on demand, including Spotify Premium, YouTube Music, Amazon Music Unlimited, and Apple Music accounted for $11.685 billion for music rightsholders, marking an increase of 4.6% year.
(In addition to these notable unlimited “paid” services, RIAA also considers limited-level products like Amazon Prime and Pandora Plus separately.)
Overall income from the American music market, including streaming, physical sales, downloads, advertising, and synchronization, grew by only 3.3% year in 2024, according to RIAA, totaling $17.67 billion.
This retail assessment of income reflects consumer spending on music and subscriptions.
In especially concerning news for music rights holders, RIAA noted that on a wholesale basis (the revenue that actually reaches artists, labels, and distributors), the American music industry grew by only 2.7% year in 2024.
Remember: this 2.7% growth is below the rate of inflation.
The total wholesale revenue received by artists, labels, and distributors this year, as reported by RIAA, was $11.3 billion.
This represented an increase of about $300 million from the previous year’s equivalent wholesale figure of $11.0 billion.
However, this $300 million revenue increase was less than half the equivalent growth (+700 million dollars) seen in the prior year.
Amidst these mixed updates, the industry reached a milestone in 2024: the number of paid subscriptions for music services in the United States hit 100 million for the first time in history.
However, according to the new RIAA report at the year’s end, there were just 3.2 million net additions to paid music accounts in 2024 compared to the previous year.
As illustrated in the table below, this +3.2 million increase in 2024 contrasts with +5.2 million in 2023, +7.6 million in 2022, +8.5 million in 2021, and +15.1 million in 2020, highlighting a consistent slowdown in the US market.
(These RIAA figures account only for paid subscription accounts; they do not include limited-level subscriptions and treat multi-user subscriptions like family plans as individual accounts.)
It’s important to view the 100 million subscriber milestone in relation to the number of households in the United States last year.
Recent estimates place the number of households at 133.8 million at the end of 2024.
With 100 million paid music subscriptions in circulation, this suggests that the market is nearing a saturation point for paid music services.
The fact that paid streaming income grew at a faster rate than the volume of paid streaming subscriptions in 2024 indicates that the ARPU (average revenue per user) for music subscribers has improved year over year.
Meanwhile, overall sales of physical music (on a retail basis) grew by 5% year to $2 billion in 2024.
Vinyl record sales increased by 7% year to $1.4 billion, marking RIAA’s 18th consecutive year of growth for this format. Vinyl sales accounted for nearly three-quarters of total physical revenue in the United States last year.
For the third consecutive year, vinyl albums outperformed CDs in unit sales (44 million vs. 33 million). CD revenues grew 1% year to $541 million in 2024.
“The music has never been more dynamic, convincing, and relevant, having brought forth cultural moments, such as memorable performances during breaks, historical television events, or must-see documentaries and biopics.”
Mitch Glazer, RIAA
“Twenty years into the streaming era, over 100 million paid subscriptions now account for two-thirds of the industry’s revenue—a historic milestone that fuels the growth of the musical economy in America.
“The music has never been more dynamic, compelling, or relevant, having emerged from our headphones with cultural acknowledgments, including unforgettable performances during breaks, historical television moments, or essential films and documentaries.
“And the dedication of American fans and superfans to their favorite artists promises an even brighter future as labels strive to create new opportunities that enhance artist revenues and diversify income streams, benefiting everyone involved in the musical economy.”
Lucas focuses on the interaction between music and society. He specializes in how music influences and reflects cultures, analyzing the role of sound in social, political, and cultural events around the world.
