Streaming platforms extended their domination of the music market in the United States in 2019, according to data from the Recording Industry Association of America.
Physical Sales Near Disappearance
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The subscription-based streaming services and free streamers that rely on advertisements for revenue together contributed for about 79% of all music sales, the RIAA said in a report Wednesday.” data-reactid=”20″>The subscription-based streaming services and free streamers that rely on advertisements for revenue together contributed for about 79% of all music sales, the RIAA said in a report Wednesday.
Physical sales made up for 59% of all revenue in the music industry just a decade ago, the RIAA noted, while streaming services contributed 5%. In 2019, physical sales dropped to just 10%.
As an increasing number of consumers prefer streaming platforms, the competition becomes intense too, with a majority of technology giants competing for market share.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Exclusive streaming companies like Spotify Technology S.A. (NYSE: SPOT) compete with Apple Inc., Alphabet Inc.’s (NASDAQ: GOOGL) (NASDAQ: GOOG) YouTube, and Amazon.com Inc.’s (NASDAQ: AMZN) Prime music.” data-reactid=”23″>Exclusive streaming companies like Spotify Technology S.A. (NYSE: SPOT) compete with Apple Inc., Alphabet Inc.’s (NASDAQ: GOOGL) (NASDAQ: GOOG) YouTube, and Amazon.com Inc.’s (NASDAQ: AMZN) Prime music.
Streaming Drives Overall Growth
The streaming platforms aren’t only taking a share of the market but driving overall growth.
The RIAA noted that the services grossed $8.8 billion in revenue in 2019, which is larger than the entire revenue of the music industry two years ago.
Paid subscription-based services contributed about 93% of the growth in 2019 YoY, drawing an extra $1.4 billion in revenue.
The total revenue from music sales in 2019 was $11 billion, 13% higher than the previous year. More than 1.5 trillion songs were streamed in the U.S. in the year.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Photo Credit: Public domain photo via Wikimedia.” data-reactid=”29″>Photo Credit: Public domain photo via Wikimedia.
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