take 35 Years and the digital music revolution that transformed the industry But for the first time since 1987, vinyl records sold more than CDs in the United States last year. The numbers further strengthened vinyl’s dominance over more unrelated physical musical genres.
The achievement is one of the most significant statistics from the Recording Industry Association of America’s 2022 year-end report released Thursday. With consumers buying 41 million LPs last year, compared to 33 million CDs, for decades the idea that vintage formats like vinyl could sell better than CDs was absurd. But when the popularity of vinyl started towards the end of the year. Thanks to factors like retro appeal and larger, more collectible album covers. It eventually became inevitable.
Although the phonograph has already surpassed the CD. But vinyl revenues have outpaced CDs since the RIAA’s 2020 report. With $1.2 billion in revenue, vinyl accounts for 70 percent of all physical music sales, according to the most recent report. Vinyl record revenue grew 17 percent last year. But CD revenue, which surged dramatically in 2021 after the pandemic limited retail sales in 2020, fell again last year by nearly 18 percent.
While the continued growth of vinyl is interesting, But streaming remains the music industry’s cash driver, accounting for 84% of all U.S. recorded music revenue last year. Overall revenue continued to grow, increasing 6% to $15.9 billion overall. a record high Although the numbers are small compared to the previous year, revenue rose 23%.
Just like many years ago Paid subscriptions remain the biggest money maker, growing 8 percent last year to $10.2 billion. The average number of paid subscribers grew to 92 million in 2022, the RIAA reports, compared to 84 million in 2021. Ad-supported streaming revenue — revenue from platforms like YouTube and the free version of Spotify — rose 6 percent to $1.8 billion. Revenue from digital downloads continued to decline as it had in recent years, down 20 percent year over year to $495 million, a 20 percent decrease.
“2022 has been an impressive year for “Growth over growth’ has continued more than a decade after streaming took its place in the music industry,” RIAA president and CEO Mitch Glazier said in a statement. “Long-term continuation Subscription streaming revenue accounted for two-thirds of the market at a record $13.3 billion. This long and continued success is only possible thanks to the determination and creativity of the record company fighting to create a healthy streaming economy. Artists and rights holders get paid wherever and whenever their work is used.”
