Despite the COVID-19 pandemic, revenues for recorded music elevated in the U.S. in the primary half of 2020, based on the Recording Trade Affiliation of America’s mid-year report. A 24% development in streaming subscriptions and a 14% increase in streaming income offset income declines in different areas of the market.
Among the many key findings, whole first-half 2020 revenues from recorded music in the U.S. elevated 5.6% to $5.7 billion. Streaming continued to drive the expansion because the quantity of paid subscriptions elevated by 24% to greater than 72 million on common, rising subscription streaming revenues for first-half 2020 by 14%, over first-half 2019.
On the identical time, with promoting markets slowing throughout the economic system because of the COVID-19 pandemic, development in ad-supported streaming revenues slowed dramatically. Bodily gross sales, together with vinyl albums and compact discs, had been additionally affected by the pandemic and fell 23%.
Streaming music revenues grew 12% to $4.Eight billion in the primary half of 2020. This class contains revenues from subscription companies (akin to paid variations of Spotify, Apple Music, Amazon, and others), digital and customised radio companies, together with these revenues distributed by SoundExchange (like Pandora, SiriusXM, and different Web radio), and ad-supported on-demand streaming companies (akin to YouTube, Vevo, and ad-supported Spotify), based on the report.
Paid subscription revenues grew 14% to $3.Eight billion, and additional elevated their share as the biggest contributor, accounting for 67% of whole revenues for the primary half of the yr. Additionally they accounted for 79% of whole streaming revenues. Paid subscription revenues grew sooner in Q2 2020 than in Q1, reflecting the pandemic’s onset in the U.S. in mid-March. This whole contains $442 million in revenues from “Restricted Tier” paid subscriptions (for companies restricted by elements akin to cell entry, catalog availability, on-demand limitations, or machine restrictions). These varieties of companies accounted for 12% of subscription revenues, a slight enhance versus the primary half of 2019.
Promoting supported on-demand streaming music revenues (from companies like YouTube, Vevo, and the ad-supported model of Spotify) grew 3% year-over-year to $421 million in the primary half of 2020. This class had grown by double digit percentages in earlier years, however was considerably impacted by broader promoting declines as a result of COVID-19. Revenues from the class grew much like historic charges in Q1 2020, however for Q2 mirrored a double-digit share decline versus the identical interval the prior yr.
Revenues from digital and customised radio companies grew 6% year-over-year to $583 million in the primary half of the yr. The class contains SoundExchange distributions for revenues from companies like SiriusXM and web radio stations, in addition to funds immediately paid by companies, included in this report as “different ad-supported streaming,” based on the report.
Revenues from bodily merchandise for first half 2020 had been down 23% year-over-year to $376 million. There was a major impression from music retail and venue shutdown measures round COVID-19, as Q1 2020 declines had been considerably lower than Q2.
Revenues from vinyl albums elevated in Q1, however decreased in Q2, ensuing in a internet total enhance of 4% for the primary half of the yr 2020. Vinyl album revenues of $232 million had been 62% of whole bodily revenues, marking the primary time vinyl exceeded CDs for such a interval for the reason that 1980s, although it nonetheless solely accounted for 4% of whole music recorded music revenues.
Digital obtain’s share of the market continued to say no, with the class’s share of whole revenues falling from 8% to six%. Revenues of $351 million had been a 22% decline versus the primary half of 2019. Particular person monitor gross sales revenues had been down 27% year-over-year, and digital album revenues declined 18%.
RIAA Chairman and CEO Mitch Glazier stated, “These are traditionally troublesome occasions: the reside music sector is shut down; studio recording is restricted; and hundreds of thousands of People are out of work throughout the broader economic system. Whereas we’re happy that the years of arduous work and assets we’ve invested in streaming are driving development in paid subscriptions, at present’s report demonstrates simply how a lot work stays to attain a sustainably wholesome music ecosystem for each music creators and followers. We should proceed working to assist maintain reside music and venues, help gig employees and session musicians, and guarantee honest pay for music on all digital platforms. Despite all of the challenges from the pandemic, one factor clearly hasn’t modified – followers nonetheless love music.”
All through 2020, RIAA and its members have labored for measures supporting these components of the music neighborhood most deeply affected by the COVID-19 pandemic, such because the landmark CARES Act, the RESTART and SOS Acts (to maintain native venues alive), and laws to resolve the “blended earner” concern that limits the attain of unemployment help for impartial artists and session performers.