Despite the difficulties faced by the music industry in 2020, recorded music revenues grew for the fifth consecutive year.
According to the Association of the Recording Industry of America ((RIAA), United States recorded music revenue increased 9.2% in 2020 to an estimated retail value of $ 12.2 billion. Meanwhile, music measured at wholesale value rose 8.9% to $ 8.0 billion.
This was mainly due to music streaming revenue growing 13.4% to $ 10.1 billion in 2020 as subscriptions were paid for on-demand streaming, including Spotify, Apple music, and Amazon music Unlimitedcontinued to be the main driver of revenue.
In fact, subscriptions hit an all-time high, rising 14.6% to $ 7.0 billion in 2020. The average number of subscriptions increased by 15 million from 60.4 million in 2019 to 75.5 million in 2020.
Physical music revenue was flat at $ 1.1 billion, followed by digital downloads, and declined 18% to $ 674 million in 2020.
Read the full report on RIAA here. It also could provide a breakdown of what relying on premium subscriptions could mean for the music industry here through Music Business Worldwide.
Sources: RIAA, Music Business Worldwide | Photo via Rukes.com