Streaming Boosts U.S. Music Sales to Highest Level Since 2006

(Bloomberg) -- Recorded music sales climbed 13% last year in the U.S., reaching their highest level since 2006, as the industry finds its footing in the digital age.

Streaming music drove almost all of the growth, accounting for 79% of all U.S. sales, the Recording Industry Association of America said Thursday. Paid subscriptions to services like Spotify and Apple Music make up more than half of the whole market, while advertising and online radio account for smaller percentages.

Music companies are all rushing to capitalize on the industry’s resurgence. Warner Music Group and Universal Music Group, two of the world’s three largest music companies, have announced plans to list shares on public markets. Private equity firms and other asset managers, meanwhile, are investing millions in related businesses.

Streaming has replaced sales from online stores like iTunes in just over a decade. Digital download sales plunged 17.6%, slipping below $1 billion for the first time since 2006.

CD sales also fell by a percentage double digits. Among physical media, vinyl records are the outlier. Though still a niche market, they grew in the double digits as younger consumers embraced the vintage medium.

To contact the reporter on this story: Lucas Shaw in Los Angeles at lshaw31@bloomberg.net

To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, Rob Golum

©2020 Bloomberg L.P.