Two vital knowledge factors for you.
Necessary knowledge level 1: Final yr there have been 131.43 million households in the US. According to census data.
Necessary knowledge level 2: In response to the newest statistics from the RIAA Published today (August 29), Sure 99 million Paid music streaming subscription accounts within the first half of 2024.
So what we’re about to inform you shouldn’t come as a shock. However that is nonetheless massive information for the worldwide music business:
The U.S. seems to be formally approaching the saturation level for music subscriptions — the purpose at which the variety of paid music subscribers within the U.S. reaches the utmost doable quantity.
In response to the RIAA’s newest mid-year report, the U.S. solely 2.5 million Internet additions of paid music subscription accounts grew by only one% within the first half of 2024 in contrast with the identical interval final yr Annual enhance of two.7% Calculated as a proportion.
That Annual discount +2.5 million Internet development within the first half of 2024 in comparison with +6.6 million year-on-year Internet development within the first half of 2023, +7.9 million Within the first half of 2022, +9.4 million first half of 2021, and +14.4 million First half of 2020 – Subscription development within the U.S. market slowed steadily.
(These RIAA figures are for paid subscription accounts; they exclude much less well-liked “restricted degree” subscriptions and rely multi-user subscriptions like household plans as particular person accounts.)
America is the world’s largest music market. However in fact, that is not the world – Music streaming subscriptions nonetheless have important development potential in a number of main worldwide markets.
Certainly, in keeping with international federation of food industry Statisticsthe U.S. market consists of approx. 38% Whole wholesale income of the worldwide recorded music business ($28.6 billion) in 2023.
Nonetheless, the variety of premium music streaming accounts within the U.S. has solely elevated 2.7% 12 months-on-year First half of 2024 (from 96.5 meters From the primary half of 2023 to 99.0m first half of 2024) is certain to draw loads of business consideration and dialogue within the coming months.
By way of paid music subscriptions revenueUS market development 5.1% in contrast with the identical interval final yr First half of 2024 – with US$5.23 billion Generated inside half a yr by premium subscribers.
(Actually, paid streaming revenue develop quicker than quantity The variety of paid streaming subscriptions within the first half of 2024 signifies that music consumer ARPU has elevated year-on-year out there.
U.S. recorded music market generates U.S. greenback income, in keeping with RIAA’s newest mid-year report US$8.65 billion Complete.
Recording Industry Association of AmericaKey statistics present that on a retail foundation, U.S. recorded music income (that’s, cash spent on bodily and digital music consumption) has grown A rise of three.9% in contrast with the identical interval final yr.
On a wholesale foundation – i.e. solely the cash went again to document labels, distributors, and many others. – your entire American recorded music business was created $5.5 billion First half of 2024.
Wholesale numbers elevated, in keeping with RIAA knowledge A rise of three% in contrast with the identical interval final yr.
Within the first half of this yr, complete income from numerous streaming media providers (together with paid subscriptions, ad-supported providers, digital and customised broadcasts, social media platforms, digital health apps, and many others.) elevated Annual enhance of three.8% document excessive $7.3 billion.
Music streaming service income contribution is approx. 84% accounted for complete U.S. recorded music market income for the fifth consecutive yr.
The RIAA additionally experiences that promoting helps on-demand music streaming providers similar to Youtubead-supported model Spotify, Facebook and many others.) “The tempo is slower than lately.”
On-demand income Promoting supported Music streaming providers develop Annual enhance of two.4% to $899 million. These ad-supported providers will account for under 10% of complete recorded music income within the first half of 2024.
Within the first half of 2024, income from bodily music codecs (together with vinyl data, CDs, and different bodily codecs) $994 million In America, up Annual enhance of 12.7%.
Vinyl document income grows 17% annual enhance or $107.5 million $740 million, Accounting for three-quarters of bodily format income.
Vinyl document gross sales surpass CD gross sales for fourth consecutive yr (Unit:24 million and 17 million). RIAA experiences CD income ‘comparatively flat’ $237 million First half of 2024.
“As we work to additional strengthen and increase the rights base these income streams depend on, we stay up for continued success and offering followers with extra alternatives to interact with the music they love.”
Matt Bass, RIAA
Commenting on the primary half outcomes, RIAA Vice President of Analysis Matt Bass stated: “In the present day’s recorded music income profile displays our business’s continued development and hard-won sustainability, as we proceed to succeed in new document highs yr after yr.
“As we work to additional strengthen and increase the rights base these income streams depend on, we stay up for continued success and offering followers with extra alternatives to interact with the music they love.”
international music enterprise
