US recorded-music industry to reach all-time high of $15.9 billion in 2022, marking industry record 7th consecutive year of growth, While overall streaming growth has been leveling off in recent years, with 92 million paid US subscriptions, it clearly continues to grow and fuels the market while vinyl continues its steady resurgence.
Streaming continued to be the biggest driver, with paid subscriptions, ad-supported services, digital and customized radio, social media platforms, digital fitness apps and others, collectively accounting for 84% of total revenue, according to the report. Paid subscriptions were up 7% in revenue to a record high of $13.3 billion. Revenue grew 8% to $10.2 billion, passing the $10 billion mark for the first time.
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The number of paid subscriptions to on-demand music services continues to grow at a double-digit rate in 2022. According to the report, the average number of subscriptions increased by 10% for the year to 92 million, compared to an average of 84 million for 2021. , (These figures exclude limited-tier services, and count multi-user plans as a single subscription.)
Music revenue from ad-supported on-demand services (such as the ad-supported version of YouTube, Spotify, Facebook and others) grew at a slower pace than in previous years, rising 6% to $1.8 billion. Digital and customized radio music (such as SiriusXM) revenue saw their growth slow even further, to only 2% to $1.2 billion in 2022. Soundexchange distribution fell 3% to $959 million. Digital download revenue had fallen by 20% to $495 million.
Revenue from physical music formats also maintained an upward trajectory, albeit at a slower pace, rising 4% to $1.7 billion. However, the pandemic played a major role in the 17% growth in 2021 as record stores reopened after several months of lockdown.
However, revenue from vinyl grew 17% to $1.2 billion – the sixteenth consecutive year of growth – and physical formats accounted for 71% of revenue. For the first time since 1987, vinyl albums outsold CDs in units (41 million versus 33 million). For 2020, CD revenue is projected to drop 18% to $483 million in 2022, following a 2021 rebound versus the impact of Covid.
“2022 was an impressive year of continued ‘growth-over-growth’ following more than a decade of the explosion of streaming on the music scene. Continuing that tally, subscription streaming revenue now makes up two-thirds of the market with a robust record high of $13.3 billion. “This long and ongoing run of success has only been possible thanks to the determined and creative work of record companies fighting to create a healthy streaming economy, where artists and rightsholders can access music wherever they are,” says Mitch Glazier, president and CEO of the RIAA. And get paid whenever their work is used.” ,
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