In 2022, the recorded-music industry in the United States achieved a new milestone, generating a record high revenue of $15.9 billion, marking the industry’s seventh consecutive year of growth. Even though the overall growth of streaming has been slowing down in recent years, it is still the largest contributor to the market with 92 million paid U.S. subscriptions, as well as the steady rise of vinyl records.
According to the report, streaming accounted for 84% of total revenues, driven by paid subscriptions, ad-supported services, digital and customized radio, social media platforms, digital fitness apps, and other similar services. Paid subscriptions alone generated a revenue of $13.3 billion, up by 7% from the previous year. Meanwhile, revenues from streaming grew by 8% to reach $10.2 billion, crossing the $10 billion mark for the first time. The number of paid subscriptions for on-demand music services grew at a double-digit rate in 2022, with an average of 92 million subscriptions for the year, up 10% from the previous year.
However, music revenues from advertising-supported on-demand services such as YouTube, Facebook, and Spotify’s ad-supported version grew at a slower pace of 6% to $1.8 billion. Revenues from digital and customized radio music, such as SiriusXM, grew by just 2% to $1.2 billion in 2022, whereas SoundExchange distributions fell by 3% to $959 million. Digital download revenue witnessed a significant decline of 20% to $495 million.
In contrast, revenues from physical music formats continued to grow but at a slower pace, with a 4% increase to $1.7 billion. This growth was impacted by the pandemic, which led to a 17% growth in 2021 due to record stores reopening after prolonged lockdowns. Vinyl records had a remarkable growth of 17% to reach $1.2 billion, marking the sixteenth consecutive year of growth. In a significant shift, vinyl albums outsold CDs in units (41 million vs. 33 million) for the first time since 1987. CD revenues witnessed a decline of 18% to $483 million in 2022 after rebounding in 2021 from the Covid-impacted 2020.
Mitch Glazier, the RIAA Chairman & CEO, expressed his satisfaction with the 2022 growth of the industry, especially the sustained growth in the streaming economy, making up two-thirds of the market. He attributed this growth to the hard work and determination of record companies in building a healthy streaming economy where artists and rightsholders get paid wherever and whenever their work is used.
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