Streaming makes up most US music revenue

Published 31.03.2017 23:39

Streaming for the first time accounted for most recorded music revenue in the United States last year, bringing the industry its fastest growth in nearly 20 years, figures showed Thursday.

While the breakneck expansion is welcome news for a long-beleaguered music industry, overall revenue is still half the level from the late 1990s before the revolution in online music.

The Recording Industry Association of America said that overall revenue soared by 11.4 percent in 2016 from the prior year to $7.7 billion, the heftiest annual gain since 1998.

The money from paid subscriptions to streaming services such as Spotify, Apple Music and Tidal more than doubled in the last year alone, the industry body said. With the growth, streaming accounted for 51 percent of the music industry's revenue in 2016, up from just 9 percent in 2011, it said.

Streaming options have been rising for consumers, with Apple entering the market in 2015 and online retail giant Amazon recently launching a service. The trends in the United States, the world's largest music market, show a sharp escalation of global trends in recent years.

The International Federation of the Phonographic Industry, the London-based global body, similarly reported historic growth in 2015. It is set to release 2016 global figures in the coming weeks. But streaming - which allows users to select any song on-demand online - has led to casualties among other formats, which have historically been bigger money-makers for artists.

U.S. revenue from digital downloads on platforms such as iTunes plummeted 22 percent last year and CD sales fell by a similar 21 percent. One exception was vinyl, which has experienced a rebirth thanks to interest among serious collectors. But vinyl was up only by 4 percent, still growing but at a more modest pace.

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