WASHINGTON, DC (CelebrityAccess) — The Recording Industry Association of America® (RIAA) has unveiled its recorded music revenue figures for 2023, showcasing 8% growth and record-setting topline revenue for the year of $17.1 billion.
Unsurprisingly, music streaming led the way for the recorded music industry in 2023, accounting for 84% of total revenues at 84%. The results for streaming were propelled by the record number of listeners with paid subscriptions to on-demand services, which rose to an all-time high of 96.8 million in 2023
Limited tier subscriptions (services limited by factors such as mobile access, catalog availability, product features, or device restrictions) fell 4% to $1.0 billion.
While paid subscriptions surged last year, revenue from ‘freemium’ advertiser-supported on demand services, such as YouTube, and Spotify, saw growth slow in 2023, up by just 2% year-over-year to $1.9 billion and accounting for 11% of total revenue.
Digital downloads continued their slow slide into oblivion, falling by 12% to o $434 million in 2023. Both digital album sales and individual track sales were down double digits, according to the RIAA, generating $205 and $191 million respectively.
At the same time, revenue from physical product continued to grow, up by 11% to $1.9 billion in 2023. Vinyl records lead the way, growing by 10% year-over-year, generating revenue of $1.4 billion. According to the RIAA, vinyl accounted for 71% of physical format revenues and outselling compact discs in units for the first time since 1987.
While vinyl accounted for the lion’s share of physical revenue last year, CDs also showed growth, up by 11% to $537 million in 2023.
“As music continues to soar and bring Americans together in new ways, new challenges continue to emerge – led by the mushrooming threat of generative artificial intelligence that, absent thoughtful and effective guardrails, put this dynamic growth and cultural reach at risk. No one has moved more quickly than the music industry to embrace responsible uses of this technology to create new possibilities and push human artistry forward,” stated RIAA Chairman and CEO Mitch Glazier. “Used responsibly, generative AI tools can take human creativity to new places. But irresponsibly, it could stifle a generation of artists across all mediums. RIAA and our members are committed to staying on the field every day, fighting with the music community for a pro-human, pro-creator future. Artists, songwriters, and their fans deserve nothing less.”
