RIAA Releases Mid-Year Report
• The RIAA has released its 2021 Mid-Year Music Industry Revenue Report, as the industry — and the world — continue to battle back from the effects of the pandemic.
According to Joshua Friedlander, RIAA’s SVP, Research & Economics, recorded music revenues in the U.S. grew 27% in the first half of 2021 versus the prior year, from $5.6 to $7.1 billion at retail value. Paid subscriptions continued to be the strongest contributor to growth, comprising nearly two-thirds of total revenue, and more than 80 million paid subscriptions for the first time. At wholesale value revenues rose 25%, from $3.7 billion in 1H 2020 to $4.6 billion in 1H 2021. Not surprisingly, the effects of COVID-19 continue to affect the industry, and year-over-year comparisons are significantly impacted by store closures, tour cancellations, and other disruptions from both 2020 and 2021.
Among the report’s highlights:
• Streaming music revenues — which includes a wide range of formats such as paid subscription services, ad-supported services, digital and customized radio, and licenses for music on Facebook and digital fitness apps, grew 26% to $5.9 billion in the first half of 2021.
• Paid subscriptions: Continue to account for the largest share of recorded music revenues in the U.S., up 26% year-over-year and totaling $4.6 Billion in 1H 2021. They accounted for nearly 2/3 of total revenues, and 78% of streaming revenue.
• Digital Downloads: In 1H 2021, revenues from digital downloads fell 6% by value to $319 million, accounting for 5% of total revenues. Revenues from digitally downloaded tracks and albums were down 12% and 4% respectively from the same period the prior year.
• Physical Products: Vinyl records continued a remarkable resurgence in the first half of 2021. Revenues from vinyl albums grew 94% to $467 million, though the comparison versus the prior year includes a period in which retail stores were significantly impacted by COVID-19, and Record Store Day 2020 was delayed. Revenues from CDs increased 44% to $205 million, but still remain 19% lower than they were in 1H 2019. CDs only accounted for 30% of physical revenues, while vinyl accounted for more than two thirds of physical format revenues. The full report is posted at riaa.com.
• In the wake of the release of these findings, RIAA Chairman & CEO Mitch Glazier (left) shared his observations, noting, “These powerful results reflect a core truth about the ways we connect with music today — as a sustained and ongoing relationship where a steady stream of listening and discovery on different devices and services is with us all day long, powering a creative and commercial renaissance. One with continued new opportunities and headroom for growth and success for artists and their label partners. 2020 was no ordinary year. And 2021 hasn’t been simple either. But music’s power, lessons, and spirit have been here to carry us through. And they always will be.” The full transcript of Glazier’s comments is posted at riaa.com.
