The latest findings from the Recording Industry Association of America (RIAA) unveil a resounding success story for the US recorded music market, showcasing its sustained growth and resilience in the face of evolving consumer trends. Released today, on March 26, the RIAA’s 2023 Year End report paints a vivid picture of an industry on the rise.
According to the RIAA report, recorded music revenues in the US experienced an impressive 8% year-on-year growth on a retail basis. This milestone marks the eighth consecutive year of expansion for the world’s largest recorded music market, reflecting the enduring popularity and vitality of music consumption.
Delving deeper, the report reveals that on a wholesale basis, the US recorded music industry amassed a staggering $11 billion in 2023, representing a remarkable 7% increase from the previous year. This substantial growth trajectory underscores the robust health of the industry and its ability to generate significant returns for stakeholders.
Unsurprisingly, streaming continues to spearhead this remarkable growth story. Paid subscription services, including industry giants like Spotify Premium and Apple Music, saw their revenues surge by 9% to reach $11.2 billion in 2023. These subscription services accounted for a substantial 78% of streaming revenues and nearly two-thirds of total revenues, reaffirming their central role in shaping the modern music landscape.
A notable catalyst for this revenue surge was the strategic price adjustments implemented by key streaming services throughout 2023. Spotify led the charge by increasing its subscription prices in 53 markets, including the US, with an average hike of around 10%. Following suit, other major players such as Apple Music, Amazon Music, and YouTube Music/Premium also revised their pricing structures, further bolstering revenue streams for the industry.
As the US recorded music industry continues its upward trajectory, fueled by the growing popularity of streaming and innovative pricing strategies, the outlook remains bright. With consumers displaying an insatiable appetite for music across diverse platforms, the industry is poised to capitalize on emerging opportunities and chart new heights in the years to come.
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