The US music industry experienced a 3.3% increase in revenue in 2024, as per a recent report. This growth was primarily driven by the surge in paid on-demand music streaming subscriptions, which reached 100 million by the end of the year. Overall streaming revenue saw a modest 3.6% year-over-year rise, amounting to $14.88 billion in total recorded revenue.
Apart from streaming, other segments of the music market also displayed noteworthy trends. Vinyl records, despite facing a slowdown in sales in some markets, showed resilience in the US, with 43.6 million units shipped in 2024, generating $1.44 billion in revenue. Similarly, CDs experienced a slight increase in sales volume, contributing $541.1 million in revenue.
On the contrary, permanent downloads continued their decline, resulting in $369.7 million in revenue, down by 14.9% compared to the previous year. In the sync category, revenue saw a 2.5% increase, totaling $412.6 million in 2024.
Industry experts, including RIAA CEO Mitch Glazier and research VP Matt Bass, highlighted the potential for additional revenue streams in the music sector. Glazier emphasized the emergence of new opportunities such as Spotify Deluxe, aimed at boosting artists’ incomes and expanding revenue sources. Bass pointed out the upcoming creative avenues for fans to engage with and support their favorite artists’ music.
Looking ahead, the industry is anticipating further insights into the global music market with the upcoming annual report by the IFPI. This report is expected to shed light on the overall performance and trends in the music industry on a global scale, providing a comprehensive view of the industry’s landscape in 2024.
In conclusion, the US music industry’s revenue growth in 2024 reflects the evolving consumption patterns and revenue streams within the sector. The continued rise of streaming services, alongside the resilience of physical formats like vinyl, underscores the dynamic nature of the music market and the ongoing efforts to adapt to changing consumer preferences and technological advancements.