Streaming music sales have surpassed physical sales (in revenue) for the first time.
The Recording Industry of America released mid-year shipment and revenue statistics.
For the first-half of 2015, growth in revenues from streaming services offset declines in digital downloads and overall wholesale revenues increased .8% to $2.3 billion on a year-over-year basis. At retail, the overall value decreased .5% to $3.2 billion.
First half revenues from music streaming services surpassed $1 billion for the first time, growing 23% in 2015 to $1.03 billion – up from $834 million for 1H 2014.
This category includes revenues from subscription services (such as Rhapsody and paid versions of Spotify, among others), streaming radio service revenues that are distributed by SoundExchange (like Pandora, SiriusXM, and other Internet radio), and other non-subscription on-demand streaming services (such as YouTube, Vevo, and ad-supported Spotify).
Revenues from permanent digital downloads (including albums, single tracks, videos, and kiosk sales) declined 4% to $1.3 billion for the first half of 2015.
Total value of shipments in physical formats was $748 million, down 17% versus 1H 2014. CDs made up 66% of total physical shipments by value. Vinyl was up 52% by value for the first half of the year, and accounted for 30% of physical shipments by value.
RIAA Chairman/CEO Cary Sherman says the data “continues to reflect the story of a business undergoing an enormous transition.” He cited positive signs, pointing out revenues from streaming music services continue to grow at a double digit rate.
Yet, “At the same time, intense demand and billions of streams does not always equal fair market rates or a fair playing field,” according to Sherman. “Addressing that is an essential element of fulfilling the enormous promise of today’s digital marketplace.”
