MBW’s State of the Week is a series in which we highlight a single data point that deserves the attention of the global music industry. Supported by status of the week sync music groupA technology-driven record label, distribution and rights management company.
The US recorded music market grew in H1 2022 – but only half as fast as H1 2021.
On a retail basis, recorded music revenue in the US (streaming subscriptions, as well as money spent on physical and digital music) increased $700 million annually To $7.7 billion in the first half of this year (from above $7 billion H1 in 2021).
US recorded music revenue increases in H1 2021, on a retail basis $1.4 billion annually To $7 billion (see below).
In other words, mid-year recorded music growth H1 2022 Compared to H1 2021, it was cut in half.
It was the same story for mid-year wholesale (trade) revenues: these reached $4.9 billion in H1 2022, $300 million YoY; In H1 2021, the equivalent figure ($4.6bn) had increased by $600 million annually.
These new statistics were published today (Sept. 21) by the Recording Industry Association of America (RIAA) in its 2022 mid-year music industry revenue. report,
The main reason for this slow overall recorded music market growth in H1 2022 is slow music streaming growth.
Streaming increased 10%, including paid subscription services, ad-supported services, digital and customized radio $5.9 billion H1 from 2021 on . In $6.5 billion in the first half of 2022.
This represents year-on-year growth, in terms of revenue, of $600 million.
However, in the prior year period (H1 2021), US midair streaming music revenue grew in terms of revenue. $1.2 billion to yo $5.9 billion.
The share of streaming music in overall industry retail revenue was almost flat in the first half of 2022 at 84 per cent.
Digging deeper into the RIAA’s mid-year data shows that paid subscriptions were the biggest driver of music revenue in H1 2022, growing 10% YoY to $5.0 billion.
According to the RIAA, this total includes $525 million “Limited Tier” in revenue from paid subscriptions (for services limited by factors such as mobile access, catalog availability, on-demand limitations, or device restrictions). Services like Amazon Prime, Pandora Plus, music licenses for digital fitness apps, and other subscriptions are included in this category.
The RIAA reports that the average number of paid subscriptions to on-demand music streaming services reached 90 million in H1 2022, a 10% increase compared to 82 million for H1 2021. (These figures count multi-user plans as a single subscription, and exclude limited-tier services.)
Ad-supported on-demand streaming music revenue (from services like YouTube, the ad-supported versions of Spotify, Facebook and TikTok) grew 16% YoY by revenue in H1 2022 to 16%. $871 million.
The RIAA reports that this “growth comes on top of the strong rebound experienced in 2021 relative to the COVID-19 period prior to that year”.
The RIAA also reports that vinyl records continued to grow in H1 2022, “after a significant increase in 2021 compared to the impacted COVID-19 shutdowns last year”.
Vinyl album revenue increased 22% To $570 millionAnd the share of vinyl in the physical market has increased from 68% to . happened 73%,
CD revenue down 2% $200 millionand accounted for 26% of physical revenue.
Commenting on the figures published in the RIAA’s mid-year report, RIAA CEO Mitch Glazier said: “Today we are pleased to release strong US recorded music revenue figures of $7.7 billion for the first half of 2022.
“Those results reflect the incredible creative and commercial partnerships artists and labels have forged that have driven another hugely successful half year. Streaming revenue from paid subscriptions, ad-supported services and other formats grew 10% to $6.5 during this period. Billion gone.
“Today’s report is great news for artists, songwriters, streaming services and fans – for everyone who has a stake in the future of music.”
Mitch Glazier, RIAA
“And the number of paid subscriptions topped 90 million for the first time. Streaming’s long run of success reflects the strength of the modern music economy and music subscriptions to consumers as well as the label’s tireless work to develop additional sources and streams of revenue.” Short forms to videos and ad-supported options on social media platforms as well as fitness apps and video and soundtrack placements.”
He continued: “Today’s report is great news for artists, songwriters, streaming services and fans – for everyone who has a stake in the future of music. We really want recorded music to lift all boats in the music family.” Looking at the power of the rising tide.
“We are proud of the creative and commercial achievements reflected in the strong results reported today. But to achieve true success, we must go beyond the balance sheet and work to advance the values of the fundamental music community.”
Cinq Music Group’s repertoire has won Grammy Awards, dozens of Gold and Platinum RIAA certifications, and multiple #1 chart spots on various Billboard charts. Its repertoire includes such luminaries as Bad Bunny, Janet Jackson, Daddy Yankee, TI, Sean Kingston, Anuel and hundreds of others.
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