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US music industry posts 100 million paid streaming users

US music industry posts 100 million paid streaming users

  • 19.03.2025 05:47
  • thejakartapost.com
  • Keywords: dangerous, danger

The US music industry reached 100 million paid streaming subscribers in 2024, with revenue growing 3% to $17.7 billion. Despite slowing subscription growth, vinyl sales continued to rise, contributing significantly to overall revenues.

Meta ServicesMeta ProductsAAPLsentiment_dissatisfiedUNVGYsentiment_satisfied

Estimated market influence

Apple

Apple

Negativesentiment_dissatisfied
Analyst rating: Buy

Rumors about Apple's intention to acquire Tidal have been swirling.

Universal Music Group

Universal Music Group

Positivesentiment_satisfied
Analyst rating: —

Universal has been touting a 'Streaming 2.0' vision focusing on avenues like selling products to superfans.

Context

Analysis of US Music Industry Trends (2024)

Key Facts and Data Points:

  • 100 million paid streaming users: The US music industry achieved this milestone for the first time in 2024.
  • Revenue growth: Total revenue increased by 3% to $17.7 billion retail, up by half a billion dollars from 2023.
  • Streaming dominance: Paid subscription services accounted for 79% of streaming revenues and nearly two-thirds (65%) of total industry revenues.
  • Slowing growth: Streaming subscriptions grew by only 4 million in 2024, compared to a spike of 8.9 million between 2020 and 2021.
  • Ad-supported services decline: Revenues from ad-supported, on-demand services (e.g., YouTube, Spotify Free) fell by 2% to $1.8 billion.
  • Vinyl resurgence: Vinyl sales grew for the 18th consecutive year, accounting for nearly 75% of physical format revenues ($2 billion).
    • Vinyl albums sold 44 million units, surpassing CDs at 33 million units in 2024.

Market Trends and Business Insights:

  • Streaming saturation: The slowdown in streaming growth suggests potential market saturation, prompting companies to explore new revenue streams.
  • Strategic shifts: Music firms like Universal are adopting strategies such as "Streaming 2.0," focusing on premium offerings for superfans.
  • Nostalgia-driven demand: Vinyl's sustained growth reflects a cultural shift toward analog formats, driven by nostalgia and collector interest.

Competitive Dynamics:

  • Tech giants' influence: Rumors of tech companies like Apple acquiring music streaming services (e.g., Tidal) highlight ongoing competition in the sector.
  • Ad-supported vs. premium models: The decline in ad-supported revenues underscores the growing preference for paid subscriptions, intensifying competition among subscription-based platforms.

Long-Term Effects and Industry Implications:

  • Diversification of revenue streams: Slower streaming growth is pushing companies to innovate beyond traditional subscription models, such as merchandise, live events, and premium fan experiences.
  • Physical format revival: Vinyl's resurgence may signal a broader cultural shift toward tangible media, offering opportunities for niche markets and independent artists.

Regulatory Considerations:

  • The text does not explicitly mention regulatory impacts, but future trends may be influenced by antitrust scrutiny of tech giants entering the music streaming space.

This analysis highlights the evolving landscape of the US music industry, with streaming growth slowing and alternative revenue streams gaining traction.