HITS Daily Double

IN H1 2020: RIAA

Paid subscription streaming is more than offsetting revenue declines in other areas of the U.S. recorded music market, according to the RIAA’s mid-year report.

First-half 2020 revenues from recorded music in the U.S. increased 5.6% to $5.7b with paid streaming subscriptions driving the growth—the number of paid subscriptions increased 24% to more than 72m on average.

Overall, streaming services brought in $4.8b, a 12% spike over the first half of 2019. Subscription streaming revenues for first-half 2020 were up 14% to $3.8b vs. first-half 2019.

Streaming represented 85% of all recorded music revenue in the first six months of the year with physical at 7%, downloads at 6% and synchs at 2%.

Meanwhile, the COVID-19 pandemic put a dent in ad-supported streaming revenues. Physical sales, too, were affected by the pandemic and fell 23% to $376m. Vinyl sales were 62% of the physical total, the first time LPs have topped CDs since the1980s.

“While we’re pleased that the years of hard work and resources we’ve invested in streaming are driving growth in paid subscriptions, today’s report demonstrates just how much work remains to achieve a sustainably healthy music ecosystem for both music creators and fans,” RIAA Chairman and CEO Mitch Glazier said.

“We must continue working to help sustain live music and venues, support gig workers and session musicians, and ensure fair pay for music on all digital platforms. Despite all the challenges from the pandemic, one thing clearly hasn’t changed—fans still love music.”