HomeBusinessAmerican music revenue reached $7.7 billion in the first half of 2022, but growth slowed compared to the first half of 2021
American music revenue reached $7.7 billion in the first half of 2022, but growth slowed compared to the first half of 2021
September 21, 2022
MBW’s Stat Of The Week is a series where we highlight one data point that deserves attention from the global music industry. Stat Of The Week is backed by Cinq Music Group, a technology-based recording, distribution and rights management company.
The US recorded music market grew in the first half of 2022 – but at half as fast as it did in the first half of 2021.
On a retail basis, US recorded music revenue grew (money spent on streaming subscriptions, as well as physical and digital music) 700 million dollars annually to me 7.7 billion dollars In the first half of this year (up from 7 billion dollars in the first half of 2021).
Back in the first half of 2021, on a retail basis, US recorded music revenue grew by $1.4 billion year on year to me 7 billion dollars (see below).
In other words, record mid-year music growth in first half 2022 It was halved compared to the first half of 2021.
It was the same story for mid-year wholesale (trade) revenue: $4.9 billion in the first half of 2022, an increase of $300 million year-over-year; In the first half of 2021, the equivalent figure ($4.6 billion) increased by $600 million year-over-year.
These new stats were released today (September 21) by the Recording Industry Association of America (RIAA), in the Music Industry’s Mid-Year Revenue Report 2022.
The main reason behind this overall slower growth in the music market in the first half of 2022 is the slow growth of music streaming.
Including paid subscription services, ad-supported services, digital and dedicated radio, broadcasting grew 10%, from $5.9 billion In the first half of 2021 to $6.5 billion in the first half of 2022.
This represents annual growth, in terms of revenue, in 600 million dollars.
However, in the period last year (first half of 2021), US music streaming revenues in the middle of the year, in terms of revenue, grew by $1.2 billion on an annual basis $5.9 billion.
Streaming Music’s share of total industrial retail revenue was roughly flat in the first half of 2022, at 84%.
Digging deeper into the RIAA’s mid-year data reveals that paid subscriptions were the biggest driver of music revenue in the first half of 2022, growing 10% year-over-year to $5.0 billion.
According to the RIAA, this total included 525 million dollars In revenue from “limited tier” paid subscriptions (for services limited by factors such as mobile access, catalog availability, on-demand restrictions, or device limitations). Services like Amazon Prime and Pandora Plus, music licenses for other digital fitness apps, and subscriptions are included in this category.
The RIAA reported that the average number of paid subscriptions for on-demand music streaming services in the first half of 2022 was 90 million, a 10% increase compared to 82 million for the first half of 2021. (These numbers count multi-user plans as a single subscription, excluding limited services the level.)
Ad-supported on-demand streaming music revenue (from services like YouTube, the ad-supported version of Spotify, Facebook and TikTok) increased 16% year-over-year through revenue in the first half of 2022 to 871 million dollars.
The RIAA reports that this “growth is on top of the strong recovery the category experienced in 2021 compared to the comparison period affected by Covid-19 the year before.”
The RIAA also reported that “after significant growth in 2021 compared to the Covid-19 shutdown affecting the previous year,” vinyl records continued to rise in the first half of 2022.
The revenue of vinyl albums has grown 22% to me 570 million dollarsAnd vinyl’s share of the physical market increased from 68% to 73%.
Certificate of Deposit yields decreased by 2% to 200 million dollarsand represents 26% of the material revenue.
Commenting on the statistics published in the RIAA Mid-Year Report, RIAA CEO Mitch Glazier said: “Today we are pleased to release strong US record music revenue figures of $7.7 billion for the first half of 2022.
“These results reflect the incredible creative and commercial partnerships that artists and brands have built that have contributed to another very successful half year. Revenues from paid subscriptions, ad-supported services, and other formats grew 10% to $6.5 billion over the period.
And the number of paid subscriptions exceeded 90 million for the first time. The longstanding success of live broadcasting reflects the strength of the modern music economy and the value consumers have found in music subscriptions as well as the brands’ tireless work developing additional sources and revenue streams including ad-supported options on short video and social media platforms such as in addition to fitness apps, video placement and music pictorial”.
“Today’s report is good news for artists, songwriters, streaming services, and fans – everyone with a stake in the future of music.”
Mitch Glazer, Rhea
He continued, “Today’s report is good news for artists, songwriters, streaming services, and fans – everyone with a stake in the future of music. We are truly witnessing the power of the rising tide of recorded music to lift all boats across the music family.
“We are proud of the creative and commercial achievements that were reflected in the strong results reported today. But to achieve real success, we must go beyond the balance sheet and work to advance the core values of the music community.”
Cinq Music Group has won Grammy Awards, dozens of RIAA Gold and Platinum certifications, and multiple #1 chart positions on a variety of Billboard charts. Her repertoire includes heavyweights such as Bad Bunny, Janet Jackson, Daddy Yankee, T.I., Sean Kingston, Anuel and hundreds of others.