U.S. Music industry - statistics & facts
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Music is one of the few forms of entertainment that has remained a significant part of people’s daily lives for thousands of years. More than just entertainment, music is an art form, an important medium for cultural exchange, and in more recent times, a major business industry. The demand for music consumption has created a multi-billion-dollar industry encompassing production, distribution, publishing, live concerts, album sales, streaming, and other music related activities. In the United States, streaming accounts for the vast majority of overall music industry revenue, with both physical and digital music sales decreasing in response to the success of platforms like Spotify. In less than 10 years, music streaming revenues have grown from figures in the hundreds of millions of U.S. dollars to figures in the multiple billions.
Looking at the consistent increase in streaming revenue since 2010, these figures are unlikely to show any signs of decline. Looking to the future, brands and consumers can expect the music industry in the United States to become increasingly more reliant on revenue from digital channels.
Music streaming - the driving force of the industry
Ultimately, the music industry in the U.S. remains strong and despite significant changes since its heyday, there is still potential for growth. Recorded music revenue has hovered between 4.6 and 4.9 billion U.S. dollars in the early 2010s. However, the rise of music streaming helped revenues to increase significantly in recent years. The extensive availability of streaming services, along with the massive popularity of smartphones, has ensured that more people than ever have access to music essentially whenever they want. Whilst just 37 million physical albums were sold in the U.S. in 2023, the increased demand for digital music has not resulted in more music album downloads, since people tend to stream music rather than buy or download entire albums. This means that the streaming revenue has grown exponentially, amounting to 14.4 billion U.S. dollars in 2023, which marks a dramatic upward spike from the four billion dollars recorded in 2016.Publishing companies dominate the market
The biggest players in the music industry are not the artists themselves, but the distributors, many of which have grown into massive billion-dollar companies. Warner Chappell, Universal Music, and Sony/ATV account for roughly 60 percent of music publishing revenues around the world. The revenue generated by the music giants is mostly accumulated through recorded music but these companies also amass billions of dollars in revenue each year from music publishing alone, and have massive influence over the industry as a whole. Many of the world’s biggest record labels are owned by these publishing companies, meaning that their influence extends all the way to the artists themselves. For this reason, there has been an increased interest in independent music publishers. While Indies’ individual market share cannot exceed five percent, their overall market impact with their niche-offerings should not be underestimated – especially because music streaming platforms offer them a new kind of exposure, despite the rising amount of competition in the industry.Looking at the consistent increase in streaming revenue since 2010, these figures are unlikely to show any signs of decline. Looking to the future, brands and consumers can expect the music industry in the United States to become increasingly more reliant on revenue from digital channels.
