Streaming Crossed 50% of Music Revenue in the US in 2016 – RIAA (Mar 30, 2017)
The RIAA just released its annual report on the financial state of the US music industry, and it appears that streaming crossed the 50% mark of recorded music revenue in 2016 for the first time, landing at 51% for the year, up from just 34% a year earlier, an increase of around $1.5 billion year on year in total streaming revenue. Apple Music was clearly part of that picture, as it grossed around $1.5 billion globally last year by my calculations, but once you spread that number across the countries where Apple operates and subtract its cut, it clearly wasn’t the only contributor to growth, with Spotify obviously another big contributor. Other things worth noting: this is really about paid streaming, which dominates overall streaming revenue, with around two thirds of the total despite far fewer users (around 25 million at the end of the year versus a likely 150 million for ad-based streaming). This streaming growth actually helped drive digital and overall revenue growth significantly higher this year after a fairly stagnant 2015 too. Also, based on my analysis of the three major music labels, streaming is still under 40% of their recorded music revenue globally, so the US is ahead of the global curve here.
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