US recorded music revenues up 9% in first half of 2022 generating $7.7 Bn at estimated retail value according to the RIAA, building on the strong growth experienced the prior year. The number of paid subscriptions grew to a record high of 90 million, with revenues up 10% to $5.0 Bn and comprising almost two-thirds of the first half total. At wholesale value, revenues grew 8% to $4.9 Bn.
Streaming
Revenues from streaming music grew 10% to $6.5 Bn in the first half of 2022. The share of total revenues that came from streaming was virtually flat at 84%.
Paid subscriptions continued to be the largest driver of music revenues, growing 10% to $5.0 Bn, and by value accounting for 78% of streaming in 1H 2022. This total includes $525 million in revenues from ‘Limited Tier’ paid subscriptions (for services limited by factors such as mobile access, catalogue availability, on-demand limitations, or device restrictions). Those types of services accounted for 10% of subscription revenues, a small increase versus 1H 2021. Services like Amazon Prime, Pandora Plus, music licenses for digital fitness apps, and other subscriptions are included in this category.
The number of paid subscriptions to on-demand music streaming services built on the record high levels from last year. For 1H 2022, the average number of subscriptions reached a record 90 million, up 10% compared with 82 million for 1H 2021. These figures count multi-user plans as a single subscription, and exclude limited-tier services
Advertising supported on-demand streaming music revenues (from services like YouTube, the ad-supported version of Spotify, Facebook and TikTok) grew 16% by revenue in 1H 2022 to $871 million. This growth comes on top of the strong rebound the category experienced in 2021 relative to the Covid-19 impacted comparison period the year before that. Digital and customized radio service revenues of $566 million in 1H 2022 were 3% lower than the same period the prior year. This category services like SiriusXM and internet radio stations.
Digital Downloads
Revenues from permanent downloads of tracks and albums both declined in 1H 2022. Digital track revenues fell 19% to $113 million, and digital albums declined 20% to $122 million. Along with ringtones and other digital download formats, 1H 2022 total of $256 million comprised only 3% of total recorded music revenues.
Physical Products
After remarkable growth in 2021 compared with a COVID-19 shutdown impacted previous year, vinyl records continued to rise in the first half of 2022. Revenues from vinyl albums grew 22% to $570 million, and vinyl’s share of the physical market increased from 68% to 73%. Revenues from CDs fell just 2% to $200 million, and accounted for 26% of physical revenue.
The full report can be downloaded here.
