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Music streaming has just broken a new record in 2023 according to figures recently published by the Recording Industry Association of America (RIAA). Services like Spotify, Apple Music and their other rivals generated $17 billion in the United States, an increase of 7% compared to the previous year.
Music streaming in great shape
In detail, it is the paid music streaming subscriptions which are proving to be a real goose that lays eggs for gold for the giants of the sector. This mode of consumption thus brought in 11 billion dollars to these players. In all, no less than 97 million people have subscribed to one of these offers from Uncle Sam.
For comparison, deals for free, ad-supported streaming services offered by Spotify or YouTube only generated $1.9 billion. We should also point out that sales by digital download are now quite secondary. In 2023, they only brought in $434 million for the sector's big names, or only 3% of the music industry's total turnover.
These figures should not, however, blind us. We know that companies like Spotify are struggling to find their way to profitability, even though the Swedish company has recently made a profit. It also laid off 1,500 employees at the end of 2023, and resolved to regularly increase the prices of its subscriptions despite customer criticism.
Physical sales on the rise
In addition to streaming, we can also point to a notable evolution observed in physical consumption patterns. In France and the United States, vinyl overshadows CDs. Thus, according to figures from the SNEP (the National Phonographic Publishing Union) for the year 2023, vinyls made it possible to recover 94 million euros, compared to 97 million for CDs.< /p>
Same trend in the United States, where sales of vinyl albums now even exceed CDs. In detail, revenues from music sold in stores increased by 11% across the Atlantic last year and will now reach $1.9 billion in 2023.
What to remember:
- Music streaming generated record revenues in the United States in 2023
- This success is mainly enabled by paid subscription offers which bring in big profits for the services. Advertising-financed offers generate more modest turnover
- Physical formats have not said their last word
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