open_in_newOriginal article
US music industry posts 100 million paid streaming users

US music industry posts 100 million paid streaming users

  • 19.03.2025 09:16
  • enca.com
  • Keywords: Streaming Growth, Revenue Increase, Market Expansion

The US music industry surpassed 100 million paid streaming subscriptions in 2024, with total revenue reaching $17.7 billion. Streaming services accounted for most of this growth, but their expansion has slowed compared to previous years, prompting companies to explore new strategies like "Streaming 2.0." Vinyl sales continued to rise, contributing nearly three-quarters of physical format revenues.

Meta ServicesUNVGYsentiment_satisfiedSPOTsentiment_dissatisfied

Estimated market influence

Universal Music Group

Universal Music Group

Positivesentiment_satisfied
Analyst rating: —

Adopted a 'Streaming 2.0' strategy focusing on fan engagement and product sales.

Spotify

Spotify

Negativesentiment_dissatisfied
Analyst rating: Buy

Experienced a revenue drop due to reliance on ad-supported services.

YouTube

Negativesentiment_dissatisfied
Analyst rating: N/A

Participated in the decline of music revenues through ad-supported platforms.

Facebook

Negativesentiment_dissatisfied
Analyst rating: N/A

Contributed to the decrease in music revenue via ad-supported services.

Context

Analysis of US Music Industry Streaming Growth and Market Implications (2024)

  • Key Milestone: The US music industry surpassed 100 million paid streaming subscriptions in 2024 for the first time, marking a significant milestone in its digital transformation.
  • Revenue Growth: Total revenue increased by 3% to $17.7 billion retail, up by $0.5 billion from 2023.
  • Streaming Dominance: Paid subscription services accounted for 79% of streaming revenues and nearly two-thirds (64%) of total industry revenues, solidifying their central role in the music economy.
  • Slowing Growth: Streaming growth has slowed, with a less than 4 million increase in subscriptions in 2024 compared to a 9 million jump from 2020 to 2021. This trend is prompting companies to explore new revenue streams beyond traditional streaming.
  • Ad-Supported Services Decline: Revenues from ad-supported, on-demand services (e.g., YouTube, Spotify ad-supported tier) fell by 2% to $1.8 billion, reflecting challenges in capturing growth in this segment.
  • Vinyl Revival: Vinyl sales continued their 18th consecutive year of growth, accounting for nearly 75% of physical format revenues ($2 billion) and selling 44 million units, compared to CDs at 33 million. The resurgence of vinyl is driven by collector demand and nostalgia for its unique listening experience.
  • Market Dynamics: Slower streaming growth and vinyl's sustained popularity highlight the evolving landscape, where digital and physical formats coexist, offering different value propositions to consumers.
  • Competitive Strategies: Major labels like Universal are shifting focus to strategies such as "Streaming 2.0," which emphasizes niche offerings (e.g., superfan products), reflecting a broader industry trend toward diversification and innovation.
  • Long-Term Implications: The industry's reliance on streaming growth raises questions about future revenue sustainability, while vinyl's enduring appeal suggests opportunities for differentiation in the market.

This analysis underscores the ongoing transformation of the music industry, with streaming remaining dominant yet showing signs of maturation, and vinyl serving as a counterpoint to digital trends.