James Donio, President of the Music Business Association (Music Biz), commented on the 2017 RIAA Shipment & Revenue Statistics report, released today.
“U.S. recorded music revenues continued their streaming-fueled growth in 2017, rising 16.5% to $8.7 billion, according to the Recording Industry Association of America’s (RIAA) newly released figures. It’s the first time in nearly two decades that revenue substantially increased two years in a row, and was driven by the continuing explosion of streaming services. In fact, streaming platforms accounted for nearly two-thirds of all U.S. industry revenue with $5.7 billion, up 43%. That milestone was powered by a massive 63% bump in revenue from paid music subscriptions, which hit $4 billion for the first time ever and asserted their dominance over all other formats with a whopping 47% of all industry revenues. This growth was pushed by the introduction of new subscription services, as well as the continuing success of established products, with the increased attention on the format driving the number of paid subscriptions to full on-demand services up 56% to 35.3 million. Ad-supported streaming services also kicked in more revenue in 2017, rising 35% to $659 million, and limited-tier subscriptions also grew 11%, accounting for 14% of the overall subscription market. The physical space continued to demonstrate resilience, surpassing digital downloads for the first time since 2011 with $1.5 billion in revenue. The growth of vinyl remains the physical sector’s bright spot, with revenue up 10% to $395 million. These numbers continue to show that while formats are evolving, the appetite for music in the U.S. remains strong and healthy.”