NEW YORK (VIP NEWS) — The US recorded music market grew for the fourth consecutive year in 2014, with wholesale revenues up 2.0% to $4.86 billion.
However, revenues at estimated retail value reached $6.97 billion, down slightly -0.5%, marking the fifth straight year of relatively flat retail revenues.
Revenues from streaming music services such as Spotify, YouTube, Pandora and Sirius/XM grew 29% to $1.87 billion in 2014, and accounted for 27% of total industry revenues. "Streaming revenue growth was driven by relatively consistent increases from each of its components," noted RIAA VP of Strategic Data Analysis, Josh Friedlander.
Paid subscription services grew 25% year-over-year to $799 million; revenues from ad-supported ondemand services grew 34% to $295 million, and distributions by collecting society SoundExchange grew 31% to $773 million.
Downloads remained the largest component at 37% of the total market by value (down from 40% in 2013). Streaming revenues grew from 21% in 2013 to 27% in 2014, while physical shipment revenues retracted from 35% to 32%. Synchronization rights accounted for 3% of total revenues, while ringtones and ringback tones represent 1%.
