The United States music market is doing pretty great. In 2017 the recorded music market generated over $8.7 billion according to new reports. That’s an increase of $1.2 billion over 2016. Not only has revenue increased, the rate of growth year over year has also increased.
The stats were released by the Recording Industry Association of America and accounts for all formats – physical and digital. Of course, streaming has led the charge of rising revenues. Streaming revenue grew by over 40% to $5.7 billion.
The last couple of years have been amazing for the music business, as companies everywhere are seeing their revenues increase for the first time since the dread of the internet became apparent.
According to Music Business Worldwide:
The $8.7bn retail revenue sum is the same level the industry was at a decade ago, in 2008. It remains 40% below peak levels, not accounting for inflation.
Total digital download revenues fell by 24.7% to $1.3bn, with the money generated by digital albums tumbling 23.8% to $623.7m.
Retail sales of CDs dipped by 6.5% to $1.06bn, while largely thanks to another spirited year for vinyl albums – up 9.3% to $389m – total physical revenues fell by just 3.7% to $1.5bn.
Recorded music sync royalties had a banner year, rising by 13.5% to $232.1m.
Head of the RIAA Cary Sherman said “We’re delighted by the progress so far, but to put the numbers in context, these two years of growth only return the business to 60% of its peak size – about where it stood ten years ago – and that’s ignoring inflation. And make no mistake there’s still much work to be done in order to make this growth sustainable for the long term.”