US recorded music revenues up 9.3% in first half of 2023 generating $8.4 Bn at estimated retail value according to the RIAA. The number of paid subscriptions grew to a record high of 96 million, with revenues up 11% to $5.5 Bn and comprising almost three quarters of the first half total. At wholesale value, revenues grew 8.3% to $5.3 Bn.
Streaming
Revenues from streaming services made up 84% of total recorded music revenues in the US, growing 10.3% to $7.0 Bn. This includes formats such as paid subscription services, ad-supported services, digital and customized radio, and licenses for music on social media and digital fitness apps. It was the 4th year in a row that streaming made up between 83% and 84% of total revenues.
Growth in revenues from paid subscription services outpaced the growth in the number of accounts. Total revenue from paid subscription services grew 11% to $5.5 Bn, compared with 6% growth for the number of accounts. Nearly two thirds of total revenues and more than three quarters of streaming revenues came from these paid subscription services.
The number of paid subscriptions to on-demand music services continued to grow, but the pace was lower than in prior years. The average number of subscriptions through the first six months of 2023 was 95.8 million, compared with 90.0 million for 1H 2022. These figures exclude limited tier services and count multi-user plans as a single subscription.
Advertising supported on-demand streaming music revenues (from services like YouTube, the ad-supported version of Spotify, Facebook and TikTok) were up just 1% to $870 million. This follows a more volatile period when the effects of COVID-19 stalled growth in 2020 before rebounding in 2021 and 2022. Digital and customized radio music revenues grew 16% to $657 million in 1H 2023. The category includes SoundExchange distributions for revenues from services like SiriusXM and internet radio stations, as well as payments directly paid by similar services.
Digital Downloads
Revenues from digitally downloaded music continued to decline in 1H 2023, down 12% to $225 million. Digital album sales were down 12% to $107 million while individual track sales were down 14% to $97 million. Downloads accounted for just 3% of US recorded music revenues in the first half of 2023.
Physical Products
Revenues from physical music formats continued to grow, reaching the highest level since 1H 2013. Total physical revenues of $882 million were up 5% versus the prior year. Revenues from vinyl records grew 1% to $632 million and accounted for 72% of physical format revenues. For the third consecutive year, vinyl albums outsold CDs in units (23 million vs 15 million). The number of CDs sold declined by 17.2% compared to the same period last year but revenue increased by 14.3%.
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