US recorded music revenues hit $7.7bn in H1 2022, however development slowed in comparison with H1 2021

MBW’s Stat Of The Week is a sequence through which we spotlight a single knowledge level that deserves the eye of the worldwide music trade. Stat Of the Week is supported by Cinq Music Group, a technology-driven document label, distribution, and rights administration firm.

The US recorded music market grew in H1 2022 – however solely half as quick because it did in H1 2021.

On a retail foundation, recorded music revenues within the US (cash spent on streaming subscriptions, in addition to bodily and digital music), grew $700 million YoY to $7.7 billion within the first half of this yr (up from $7 billion in H1 2021).

Again in H1 2021, on a retail foundation, US recorded music revenues grew by $1.4 billion YoY to $7 billion (see under).

In different phrases, mid-year recorded music development seen in H1 2022 was reduce in half in comparison with H1 2021.

It was the identical story for midyear wholesale (commerce) revenues: These hit $4.9 billion in H1 2022, up $300 million YoY; in H1 2021, the equal determine ($4.6bn) was up by $600 million YoY.

These new stats have been revealed right now (September 21) by the Recording Business Affiliation of America (RIAA), in its 2022 Mid-Yr Music Business Income Report.

The important thing motive for this slower general recorded music market development in H1 2022 is due to slower music streaming development.

Together with paid subscription companies, ad-supported companies, digital and customised radio, streaming grew 10%, from $5.9 billion in H1 2021 to $6.5 billion within the first half of 2022.

That represented YoY development, in income phrases, of $600 million. 

Within the prior yr interval, nevertheless (H1 2021), US midyear Streaming Music revenues grew, in income phrases, by $1.2 billion YoY to $5.9 billion.

Streaming Music’s share of complete trade retail revenues was nearly flat in H1 2022, at 84%.

Digging deeper into RIAA’s mid-year knowledge reveals that paid subscriptions have been the biggest driver of music revenues in H1 2022, rising 10% YoY to $5.0 billion.

In keeping with the RIAA, this complete included $525 million in revenues from “Restricted Tier” paid subscriptions (for companies restricted by elements akin to cellular entry, catalog availability, on-demand limitations, or machine restrictions). Providers like Amazon Prime, Pandora Plus, music licenses for digital health apps, and different subscriptions are included on this class.

The RIAA studies that the typical variety of paid subscriptions to on-demand music streaming companies in H1 2022 reached a document 90 million, up 10% in contrast with 82 million for H1 2021. (These figures depend multi-user plans as a single subscription, and exclude limited-tier companies.)

Advert-supported on-demand streaming music revenues (from companies like YouTube, the ad-supported model of Spotify, Fb and TikTok) grew 16% YoY by income in H1 2022 to $871 million.

The RIAA studies that this “development comes on high of the sturdy rebound the class skilled in 2021 relative to the Covid-19 impacted comparability interval the yr earlier than that”.

The RIAA additionally studies that “after exceptional development in 2021 in contrast with a Covid-19 shutdown impacted earlier yr”, vinyl information continued to rise in H1 2022.

Revenues from vinyl albums grew 22% to $570 million, and vinyl’s share of the bodily market elevated from 68% to 73%.

Revenues from CDs fell 2% to $200 million, and accounted for 26% of bodily revenues.

Commenting on the stats revealed within the RIAA’s mid-year report, RIAA CEO Mitch Glazier, stated: “As we speak we’re happy to launch sturdy U.S. recorded music income figures of $7.7 billion for the primary half of 2022.

“These outcomes mirror the unbelievable inventive and industrial partnerships artists and labels have solid which have powered one other extraordinarily profitable half yr. Streaming revenues from paid subscriptions, ad-supported companies, and different codecs grew 10% to $6.5 billion throughout this era.

“And the variety of paid subscriptions topped 90 million for the primary time. Streaming’s long term of success displays the energy of the trendy music economic system and the worth shoppers have present in music subscriptions in addition to labels’ tireless work growing further sources and streams of income together with ad-supported choices on brief type video and social media platforms in addition to health apps and video and soundtrack placement.”

“As we speak’s report is nice information for artists, songwriters, streaming companies, and followers — everybody with a stake in music’s future.”

Mitch Glazier, RIAA 

He continued: “As we speak’s report is nice information for artists, songwriters, streaming companies, and followers — everybody with a stake in music’s future. We actually are seeing the facility of recorded music’s rising tide to elevate all boats throughout the music household.

“We’re pleased with the inventive and industrial accomplishments mirrored within the sturdy outcomes reported right now. However to attain true success, we should transcend the stability sheet and work to advance elementary music neighborhood values.”

Cinq Music Group’s repertoire has received Grammy awards, dozens of Gold and Platinum RIAA certifications, and quite a few No.1 chart positions on a wide range of Billboard charts. Its repertoire contains heavyweights akin to Dangerous Bunny, Janet Jackson, Daddy Yankee, T.I., Sean Kingston, Anuel, and a whole lot extra.

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