Tags: cds | vinyl | digital | downloads | streaming

CDs, Vinyl Outsell Digital Downloads; Streaming Still King

CDs, Vinyl Outsell Digital Downloads; Streaming Still King

Cary Sherman, chairman and chief executive officer of the Recording Industry Association of America (Rick Diamond/Getty Images)

By    |   Friday, 23 March 2018 11:52 AM

CDs and vinyl outsold digital downloads in 2017, according an annual report from the Recording Industry Association of America, but streaming services are still king in the music business, Rolling Stone reported.

Physical products, such as CDs and vinyl records made up 17 percent of the music sales in 2017, according to the RIAA report, totaling $1.5 billion. Digital downloads made up 15 percent of the music sales over the same time period, raking in $1.3 billion, according to RIAA.

While the $1.5 billion represents a four percent decrease in CDs and vinyl, RIAA said digital downloads appeared to really lose favor with customers, tumbling 25 percent.

"For the first time since 2011, revenues from physical products exceeded those from digital downloads," RIAA said in its report. "Revenues from sales of track downloads were down 25 percent and digital album revenue decreased 24 percent versus 2016."

Streaming is still the preferred way music listeners like to purchase songs from their favorite artists, as it grabbed 65 percent of the market in 2017, RIAA noted. Total revenues from streaming platforms increased 43 percent to $5.7 billion.

Rolling Stone said streaming category includes revenue from premium subscription services offered by Spotify, Amazon, Tidal, Pandora and Apple Music, as well as ad-supported on-demand streaming services like YouTube and Vevo.

"Music is a digital business, with more than 80 percent of overall revenue stemming from an array of digital platforms and services," Cary Sherman, chairman and chief executive officer of RIAA said in a Medium blog post that accompanied the report. "More than any other creative industry, music companies successfully transformed themselves ahead of the transition to streaming, all while forging stronger relationships with their most important partner: the artist.”

"This remarkable re-invention didn't happen by accident. It is the result of years of painstaking work by record labels who continue to strengthen the teams and systems necessary to support an artist's ambition, all while working closely with hundreds of digital platforms to bring music to fans in new and innovative ways."

The music industry is doing well, overall, as well, increasing its revenues 16.5 percent to $8.7 billion, its second straight year of growth, according to RIAA.

The study added, though, that despite the increase, the industry is only at its revenue total of 2008 and is still 40 percent below its peaks levels. According to a chart provided by Sherman, the industry made nearly $15 billion in 1999.

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CDs and vinyl outsold digital downloads in 2017, according an annual report from the Recording Industry Association of America, but streaming services are still king in the music business.
cds, vinyl, digital, downloads, streaming
408
2018-52-23
Friday, 23 March 2018 11:52 AM
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