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Music Industry Hits Record Revenue in 2022 with Streaming, Vinyl, and Physical Media

The music industry saw a record $15.9 billion in revenue in 2022, according to the latest report from the Recording Industry Association of America (RIAA).^[0] Paid streaming services, vinyl records, and other physical media formats drove the record-breaking figures.

The report shows that streaming services remain the primary source of income in the US music industry, accounting for 84% of all revenue. This is up from 83% in 2021.^[1] On average, there were 92 million streaming music subscriptions active in 2022, bringing in $13.3 billion in revenue.^[2] In comparison, digital downloads (including both albums and single tracks) dropped 20% to $495 million.^[3] Revenue from physical media formats, such as CDs and vinyl records, also dropped 18% to $483 million.^[4]

Interest in vinyl records has grown in recent years.^[5] Though the physical format only represented 11% of the overall music industry revenue in 2022, vinyl records have consistently increased for the last 16 years and now compose 71% of all physical music format revenue.^[6] Vinyl record sales rose 17% last year, helping overall physical media revenue climb 4% in 2022.^[7]

Ad-supported streaming services like YouTube also brought in $1.8 billion, making up 11% of the total.^[8] Digital and customized radio music revenues grew 2% to $1.2 billion, which includes SoundExchange distributions for revenues from services like SiriusXM and internet radio stations.^[9]

Despite the surge in streaming services and physical media, digital downloads continued to decline in 2022, accounting for just 3% of US recorded music revenue.^[10]

It is clear that streaming remains the most popular and profitable way to consume music in the US. However, with vinyl sales on the rise and physical media formats still in demand, the music industry is sure to remain profitable even as digital downloads become a relic of the past.

0. “Music Industry Reports Record $15.9 billion 2022 Revenue Driven by Paid Streaming, Vinyl Records” Media Play News, 9 Mar. 2023, https://www.mediaplaynews.com/music-industry-reports-record-15-9-billion-2022-revenue-driven-by-paid-streaming-vinyl-records/

1. “Sales of vinyl albums overtake CDs for the first time since the late ’80s” Ars Technica, 10 Mar. 2023, https://arstechnica.com/gadgets/2023/03/sales-of-vinyl-albums-overtake-cds-for-the-first-time-since-the-late-80s/

2. “Vinyl Outsold CDs in 2022 for First Time in Over Three Decades” Consequence, 9 Mar. 2023, https://consequence.net/2023/03/vinyl-outsold-cds-2022-riaa/

3. “Vinyl records outsell CDs for the first time since 1987” MPR News, 10 Mar. 2023, https://www.mprnews.org/story/2023/03/10/npr-vinyl-outsells-cds-first-time-since-1987-records

4. “Music Throwback: Vinyl Records Outsell CDs for First Time Since 1987” PCMag, 10 Mar. 2023, https://www.pcmag.com/news/music-throwback-vinyl-records-outsell-cds-for-first-time-since-1987

5. “The List: Fill your crates with records from these local shops” Northforker, 10 Mar. 2023, https://northforker.com/2023/03/the-list-fill-your-crates-with-records-from-these-local-shops

6. “Vinyl Records Outsold CDs for the First Time Since 1987” HYPEBEAST, 10 Mar. 2023, https://hypebeast.com/2023/3/vinyl-records-outsould-cds-first-time-since-1987

7. “US recorded music revenues from paid subscriptions exceeded $10bn annually for the first time in 2022” Music Business Worldwide, 9 Mar. 2023, https://www.musicbusinessworldwide.com/us-recorded-music-revenues-from-paid-subscriptions-exceeded-10bn-annually-for-the-first-time-in-2022/

8. “For The First Time In Decades, People Bought More Vinyl Than CDs In 2022” Rolling Stone India, 10 Mar. 2023, https://rollingstoneindia.com/for-the-first-time-in-decades-people-bought-more-vinyl-than-cds-last-year/

9. “U.S. Recorded Music Revenue In 2022 Just Shy Of $16 Billion.” Inside Radio, 10 Mar. 2023, https://www.insideradio.com/free/u-s-recorded-music-revenue-in-2022-just-shy-of-16-billion/article_ddee92ac-bf27-11ed-b280-1ff9cc1ead39.html

10. “Streaming, Vinyl Sales Drive RIAA Revenue Record” Mix, 9 Mar. 2023, https://www.mixonline.com/business/streaming-vinyl-sales-drive-riaa-revenue-record