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Paid streaming services like Spotify and Apple Music continue to dominate the music industry’s revenue sources, with an increase to 92 million paid subscriptions as of the end of 2022.
The Recording Industry Association of America (RIAA) has released its annual recorded music revenue report, and streaming services accounted for 84% of revenue. Paid subscription service revenue increased 8% to $10.2 billion in 2022, breaking the $10 billion mark for the first time.
More people were willing to pay for a music streaming subscription as revenue from ad-supported services, such as YouTube and Spotify, grew slower than in previous years. These ad-supported services grew 6% to $1.8 billion in revenue.
“2022 was an impressive year of sustained ‘growth-over-growth’ more than a decade after streaming’s explosion onto the music scene,” said RIAA Chairman & CEO Mitch Glazier. “Continuing that long run, subscription streaming revenues now make up two thirds of the market with a record high $13.3 billion.”
RIAA notes that vinyl records are making a comeback, and these types of albums outsold CDs in units for the first time since 1987. As a result, total revenue from physical music formats was up 4% to $1.7 billion.
Revenue from digital and customized radio music was minuscule in comparison, growing 2% to $1.2 billion in 2022. Digitally-downloaded music, like iTunes music sales, continued to decline in revenue for 2022, down 20% to $495 million.
Downloads accounted for just 3% of US recorded music revenues in 2022, down from a peak of 43% in 2012. Sales from digital albums and individual songs were down 20% to $242 and $214 million, respectively.