Consumers are spending more on streaming services than ever before, new data shows.
According to the Recording Industry Association of America’s latest study, music streaming services’ revenue continued to grow in 2019 as digital downloads hit their lowest point since 2006, signaling a shift in the way consumers download and consume their favorite songs.
Data shows that revenue from streaming music grew by a quarter in 2019, reaching a total of $11.1 billion in 2019. Paid streaming services like Spotify and Apple Music made $6.8 billion of that revenue, with paid services now accounting for 61% of all revenue from streaming in the United States.
The rest comes from ad-supported streaming revenue like YouTube.
As well as revenue, subscriber numbers grew in 2019 by 29% as more people make the shift from free tiers to premium music subscriptions, jumping from 46.9 million to 60.4 million.
What’s more, physical sales of music fell by their biggest percentage to date, and account for just 10% of the overall market. Vinyl, however, grew in popularity for the 14th consecutive year as people continue to revive the format; generating $500 million as a result.
Perhaps the most interesting piece of data is music downloads, which now account for just 8% of all music sales.
That’s less than physical media, showing that people are more likely to buy a CD or vinyl record than they are to head to the iTunes Store and purchase a song.
Speaking of the data, RIAA Chairman and CEO Mitch Glazier, said: “Today’s report reflects the prospect of a future in which creators have a path forward.
“But it also reveals how much farther we must go to assure a healthy music community in which all music is valued and creators are fairly compensated. We still have not realized the full value of music on all digital services.”
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