by Wayne Friedman , March 30, 2017
found on Media Daily News
The U.S. music industry grew by strong double-digit percentages last year — largely because of the rapidly growing streaming music business.
The Recording Industry Association of America says revenues grew 11.4% to $7.7 billion from $6.9 billion in 2015.
Last year, music-streaming revenues rose dramatically — up nearly 70% to $3.9 billion. Music streaming’s share of the overall business is at 51.4%, up dramatically from 34% in 2015.
Total subscribers of music streaming more than doubled from year ago — to 22.6 million from on-demand services, such as Spotify and Apple Music, which went through its first full year of operation.
Revenue from paid subscriptions for those services more than doubled — as a consequence — to $2.5 billion from $1.2 billion. Revenue from SoundExchange distributions — which collects and distributes royalties on the behalf of sound recording copyright owners — was up 10% to $884 million; and on-demand/ad-supported networks grew 26% for $469 million.
However, digital download/ringtones revenues continue to drop — 22% to $1.8 billion — with its share of the overall music business now at 24.1%.
Physical music sales were down 16% to $1.7 billion — now comprising a 21.8% share of all music revenues. Vinyl revenues were up 4% to $430 million; now 26% of all physical retail shipments.