×

RIAA Midyear Report: Streaming Revenues Up 17%, Paid Subscriptions Soar to 30.4 Million

The music industry is still a long way from its late ’90s heyday, but the Recording Industry Association of America’s midyear report shows the growth of streaming continues apace, with retail revenues up to $4 billion, 17% more than last year, while wholesale is up 14.6% to $2.7 billion.

With paid subscriptions rising to 30.4 million (up from 20.2 million in 2016), revenues from services like Spotify, Apple Music and Amazon are up to $1.7 billion, a rise of 61%, accounting for 43% of total revenue.  Overall, streaming accounted for 62% of industry revenue, followed by digital downloads (19%), physical (16%) and synch rights (3%). Total value of digitally distributed formats in the first half of the year was $3.2 billion, up 21% from last year, contributing 84% of total industry value.

Physical product shipments decreased just 1% to $632 million, with CD revenue down 3% to $431 million, while vinyl continued its resurgence, up 3% to $182 million, comprising 29% of total physical shipments at retail value, their highest share since the mid-‘80s, when CDs quickly became dominant.

The results were consistent with the ones posted by the International Federation of the Phonographic Industry (IFPI), which reflected the global music industry, yesterday.

Commenting on the results, RIAA Chairman/CEO Cary Sherman remarked, “Our story continues to be one of great promise, but our footing is fragile, and a sustained, durable recovery is jeopardized by a fundamentally uneven playing field.”

With paid digital downloads steadily decreasing ($757 million, down 24% from last year’s six-month report) to a mere 19% of industry revenues (down from $1.5 billion at the six month mark in 2013), Sherman cites the contributions of record labels in spreading streaming, partnering with more than 400 services worldwide, pointing to the investment of $4.5 billion in “discovering, nurturing and promoting artists.”

Touching on figures showing the music industry leading the entertainment industry in digital distribution with a figure of 78%, topping video games (57%), movies/TV (40%), books (26%), magazines (27%) and newspapers (19%), Sherman points to the rise of paid streaming subscriptions, which went from 12% of revenues in 2014 to 30.1% last year, while ad-supported services rose only 3 perc3entage points from 4% three years ago to 7% in 2016.

Sherman then returns to the issue of the so-called “value gap” once again, pulling up figures that show an individual has to stream 58 hours of video on YouTube before generating a single dollar to music creators, concluding, “For the second half of 2017, we look forward to more great music, and hope that we can make more progressing on addressing fundamental inequities that stymie music’s full potential.”

 

 

More Biz

  • Lenny Bruce (1925-1966) social critic and

    Paul Krassner Recalls Lenny Bruce, Cavalier Magazine 50 Years Later

    Men’s magazine Cavalier was launched by Fawcett Publications in 1952 (motto: “For the American Male”). It was published the year before Playboy, to which it has often been compared. Imagine that this was a bastion of cutting-edge comic literature. Back in the day, Cavalier tried to be seen as slightly hipper, more youthful and considered [...]

  • LiveXLive Names AOL and MTV Vet

    LiveXLive Names AOL and MTV Vet Dermot McCormack President

    Live entertainment digital media company LiveXLive Media today announced that AOL and MTV veteran Dermot McCormack has been named president of the company. According to the announcement, McCormack will lead the business and creative operations of LiveXLive, effective immediately. McCormack previously served as AOL’s Global President of Video and Studios, where he oversaw the video [...]

  • R Kelly Sexual Assult Accusations Mugshot

    R. Kelly Ordered Held Without Bail

    R. Kelly has been ordered held without bond at a hearing Tuesday in federal court in Chicago, according to the Chicago Sun Times. The singer entered a not-guilty plea. The hearing, which follows the singer being hit Friday with a total of 18 counts of serious sexual misconduct and other charges in Chicago and New York, [...]

  • Woodstock co-producer and co-founder, Michael Lang,

    Woodstock 50 Organizers Are Optimistic but Vague Before Town Meeting

    Woodstock organizers Michael Lang and Richard Peck were optimistic but vague when speaking with reporters at a hastily announced open house for the festival held in Vernon, New York on Monday night. The town’s Vernon Downs is the most recent proposed site for the trouble festival, which has been dogged by financial and organizational problems [...]

  • What Is Equity, Roc Nation’s Indie

    What Is Equity, Roc Nation’s Indie Distribution Company?

    When news broke earlier this year that Jaz-O, Jay-Z’s longtime friend-turned-foe-turned-friend-again from Marcy Projects, had signed with Roc Nation, most reports glossed over exactly which company the rapper had signed with. His deal, for his Kingz Kounty Media Group, is actually with Equity Distribution, the independent distribution arm of the Roc Nation family of companies, [...]

  • Andhadhun

    Booming Digital Lifts Eros Indian Film Distribution Giant

    Eros International, India’s largest and most controversial film distributor, says that its digital revenues now outstrip conventional theatrical and syndication revenues. Its Eros Now streaming platform claims 18.8 million paying subscribers. The New York-listed company reported annual results that were distorted by multiple adjustments to presentation. Reported revenues in the year to end of March [...]

  • The dark Manhatten skyline, seen from

    StubHub Refunds $500,000 to Customers Shut Out by New York Blackout

    Saturday’s blackout in New York had an outsized effect on the city’s nightlife, with Madison Square Garden and the entire Broadway district seeing multiple shows cancelled due to the the power outage. As a result, StubHub has refunded more than $500,000 worth of tickets for cancelled events. According to a statement from the company, the StubHub [...]

More From Our Brands

Access exclusive content