US music industry posts 100 million paid streaming users

US music industry posts 100 million paid streaming users

  • 18.03.2025 00:00
  • iraqinews.com
  • Keywords: Streaming Growth, Revenue Increase

The US music industry reached over 100 million paid streaming subscribers in 2024, driving revenue to $17.7 billion. Despite this growth, streaming expansion has slowed, prompting companies to explore new avenues like vinyl sales, which continue to rise.

Meta ServicesUNVGYsentiment_satisfiedSPOTsentiment_dissatisfied
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Estimated market influence

Universal

Universal

Positivesentiment_satisfied
Analyst rating: —

Adopted a 'Streaming 2.0' strategy focusing on selling products to superfans.

RIAA

Positivesentiment_satisfied
Analyst rating: N/A

Released the latest report detailing industry performance.

YouTube

Negativesentiment_dissatisfied
Analyst rating: N/A

Experienced a revenue decrease due to ad-supported services.

Facebook

Negativesentiment_dissatisfied
Analyst rating: N/A

Experienced a revenue decrease due to ad-supported services.

Spotify

Spotify

Negativesentiment_dissatisfied
Analyst rating: Buy

Ad-supported version saw a revenue decrease.

Context

Analysis and Summary: US Music Industry Trends (2024)

Key Facts and Data Points

  • Date: March 18, 2025
  • Total Revenue: $17.7 billion retail (up 3% from 2023)
  • Streaming Subscriptions: Over 100 million paid streaming users in the US for the first time in 2024
  • Streaming Revenues:
    • Accounted for 79% of total streaming revenues.
    • Contributed nearly two-thirds of total industry revenue.
  • Growth Slowdown:
    • Streaming subscriptions increased by less than 4 million in 2024, compared to a spike of almost 9 million from 2020 to 2021.

Market Trends and Business Impact

  • Declining Growth in Streaming: The slowdown in streaming growth has pushed music companies to explore new revenue streams, such as premium products for superfans (e.g., Universal’s "Streaming 2.0" strategy).
  • 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.

Competitive Dynamics and Strategic Considerations

  • 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, outpacing CDs at 33 million units.
    • Popularity driven by nostalgia and collector demand for the "warm crackle" experience.

Long-Term Effects and Industry Implications

  • Shift to Niche Markets: The sustained growth of vinyl suggests a growing preference for physical formats and niche markets, potentially reshaping competition between streaming services and physical media providers.
  • Strategic Diversification: Music companies are likely to focus on premium offerings and alternative revenue streams as streaming growth slows.

Regulatory Considerations

  • No specific regulatory impacts mentioned in the text, but the dominance of major labels (e.g., Universal) could attract antitrust scrutiny in the future.

This analysis highlights the evolving landscape of the US music industry, with streaming growth slowing and vinyl experiencing a resurgence, while companies adapt to new strategies for sustained revenue growth.