Streaming accounted for 84% of the music industry's revenue in 2022

RIAA report

The Recording Industry Association of America (RIAA) has released its annual recorded music revenue report, and streaming services accounted for 84% of revenue. Paid subscription service revenue increased 8% to $10.2 billion in 2022, breaking the $10 billion mark for the first time.

More people were willing to pay for a music streaming subscription as revenue from ad-supported services, such as YouTube and Spotify, grew slower than in previous years. These ad-supported services grew 6% to $1.8 billion in revenue.

"2022 was an impressive year of sustained 'growth-over-growth' more than a decade after streaming's explosion onto the music scene," said RIAA Chairman & CEO Mitch Glazier. "Continuing that long run, subscription streaming revenues now make up two thirds of the market with a record high $13.3 billion."

RIAA notes that vinyl records are making a comeback, and these types of albums outsold CDs in units for the first time since 1987. As a result, total revenue from physical music formats was up 4% to $1.7 billion.

Revenue from digital and customized radio music was minuscule in comparison, growing 2% to $1.2 billion in 2022. Digitally-downloaded music, like iTunes music sales, continued to decline in revenue for 2022, down 20% to $495 million.

Downloads accounted for just 3% of US recorded music revenues in 2022, down from a peak of 43% in 2012. Sales from digital albums and individual songs were down 20% to $242 and $214 million, respectively.