More people are streaming music through services like Apple Music and Spotify, and the record industry is seeing a major lift.
Revenue made from streaming services in the United States grew by 26 percent in the first six months of the year, according to trade group Recording Industry Association of America, as reported by The Wall Street Journal. That makes for a revenue of $4.3 billion, according to research conducted by the group, which represents approximately 80 percent of the music industry’s overall revenue.
Although this included both paid subscriptions and ad-supported streams, the report also found that paid subscriptions grew by 31 percent, accounting for 62 percent of the industry’s total revenue. Spotify has more than 100 million subscribers, and Apple Music boasts 56 million paid subscribers. The record industry in the US saw an 18 percent increase in revenue — hitting $5.4 billion — in the first six months of 2019.
It’s not just streaming that’s helping the industry see a boost, though: physical media sales also jumped. Both vinyl and CDs saw increases in sales, growing 5 and 13 percent, respectively. CD sales made up roughly $485 million of the industry’s revenue over the first six months of the year, and vinyl sales brought in an additional $224 million.
Even with the notable increases in physical media purchases, it’s clear that streaming is a dominant force for the industry in the United States. More artists have embraced streaming platforms, too. Taylor Swift, Drake, and Ariana Grande are some of the top performers on services like Spotify, according to the study. Even Tool recently made their music available on streaming platforms for the first time. Still, artists are only paid a fraction of every stream.