The U.S. recorded music industry reached new heights in 2024, generating $17.7 billion in revenue according to the Recording Industry Association of America's (RIAA) year-end report. This marks the ninth consecutive year of growth, though the pace has slowed to 3% compared to 7.7% in 2023.
Streaming remained the dominant force, accounting for 84% of total revenue at $14.9 billion. A major milestone was achieved as paid streaming subscriptions surpassed 100 million users for the first time, contributing $10.69 billion in revenue - a 5.3% increase from 2023.
The physical format market showed resilience, with vinyl continuing its remarkable run. Vinyl sales grew 6.9% to $1.44 billion, marking its 18th straight year of growth. The format shipped 43.6 million units, outperforming CDs (32.9 million units) for the third consecutive year.
CD sales demonstrated modest growth, with revenue increasing 0.7% to $541.1 million. However, digital downloads continued their decline, dropping 14.9% to $369.7 million - now representing just 2% of total industry revenue.
Ad-supported streaming services faced challenges, with revenue declining 1.8% to $1.83 billion. SoundExchange distributions for non-interactive digital plays grew 4.9% to $1.05 billion.
RIAA CEO Mitch Glazier noted the industry's evolution, highlighting new opportunities for artist income through innovative services and experiences. The focus now shifts to developing additional revenue streams, including initiatives targeting superfans and enhanced subscription tiers.
The report indicates a maturing streaming market in the U.S., with industry leaders exploring new growth avenues to maintain momentum in the evolving digital landscape.