Likely due to the rise in streaming, retail music – being the sale and streaming of music, is on the up in the first 6 months of this year. The revenue is at $5.4 billion, an increase in 18%. This result, means that the US is on track to hit $10 billion in revenue for 2019, something that has not be achieved since 2007.
If the US market grows by the same percentage margin as it did in H1 2019 (+18%) over the next year, it will be generating over $1 billion every month from recorded music in the first half of 2020.
Net revenues from physical products actually grew 5% to $485m in H1 2019; however, according to the RIAA, this growth was the result of a reduction in physical product returns, and on a gross basis the revenues from physical product would have been down for the period.
We are seeing a resurgence in vinyl, as we see it grow 13% to $224m, but still only accounted for 4% of total revenues in 1H 2019. That $224m was actually close to the revenues generated by the CD format ($248m) in the same period.
Revenues from digital downloads fell 18% in H1 2019 to $462m. Individual track sales revenues were down 16% year-over-year, and digital album revenues declined 23%.
This is terrific news for music industry professionals. With a bumpy few years due to change to streaming, it looks like we’re on the good side now. There is no signs of streaming and the like slowing down, the industry will continue to grow and hopefully we see more outstanding numbers in the years ahead.