US recorded music revenues hit $7.7bn in H1 2022, however progress slowed in comparison with H1 2021
MBW’s Stat Of The Week is a sequence by 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 file 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 progress seen in H1 2022 was minimize 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 printed at present (September 21) by the Recording Trade Affiliation of America (RIAA), in its 2022 Mid-Yr Music Trade Income Report.
The important thing cause for this slower total recorded music market progress in H1 2022 is due to slower music streaming progress.
Together with paid subscription providers, ad-supported providers, 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 progress, 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 most important 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 providers restricted by elements resembling cellular entry, catalog availability, on-demand limitations, or gadget restrictions). Providers like Amazon Prime, Pandora Plus, music licenses for digital health apps, and different subscriptions are included on this class.
The RIAA stories that the typical variety of paid subscriptions to on-demand music streaming providers in H1 2022 reached a file 90 million, up 10% in contrast with 82 million for H1 2021. (These figures rely multi-user plans as a single subscription, and exclude limited-tier providers.)
The RIAA stories that this “progress comes on prime 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 stories that “after exceptional progress 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 printed within the RIAA’s mid-year report, RIAA CEO Mitch Glazier, stated: “At the moment we’re happy to launch sturdy U.S. recorded music income figures of $7.7 billion for the primary half of 2022.
“These outcomes replicate the unbelievable inventive and business partnerships artists and labels have solid which have powered one other extraordinarily profitable half yr. Streaming revenues from paid subscriptions, ad-supported providers, and different codecs grew 10% to $6.5 billion throughout this era.
“At the moment’s report is nice information for artists, songwriters, streaming providers, and followers — everybody with a stake in music’s future.”
Mitch Glazier, RIAA
“And the variety of paid subscriptions topped 90 million for the primary time. Streaming’s future of success displays the energy of the trendy music financial system and the worth customers have present in music subscriptions in addition to labels’ tireless work creating extra sources and streams of income together with ad-supported choices on quick kind video and social media platforms in addition to health apps and video and soundtrack placement.”
He continued: “At the moment’s report is nice information for artists, songwriters, streaming providers, and followers — everybody with a stake in music’s future. We really are seeing the ability of recorded music’s rising tide to carry all boats throughout the music household.
“We’re happy with the inventive and business accomplishments mirrored within the sturdy outcomes reported at present. However to realize true success, we should transcend the stability sheet and work to advance basic music group values.”
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