Streaming is getting increasingly popular
Music streaming services seem to be getting more popular by the day. Spotify (SPOT) and Apple Music have seen tremendous growth in their subscriber bases. Spotify, the leading music streaming service, said its paid subscribers increased by 8 million in the second quarter of 2018 to 83 million.
The Recording Industry Association of America (or RIAA) has released its mid-year report on the industry. According to the RIAA, total revenue from recorded music rose 10% in the first half of 2018 to $4.6 billion in the United States, compared to $4.2 billion in the first half of 2017.
Streaming services averaging 1 million new paid subscribers per month
According to the RIAA report, the number of paid subscriptions of streaming services grew 48% YoY (year-over-year) in the first half of 2018 to an average of 46.4 million. These services are averaging an increase of about 1 million subscriptions per month.
Paid subscription revenues were up 33% YoY in the first half of 2018, reaching $2.55 billion.
Streaming is increasing its dominance over other ways of listening to music. Of the total revenue from recorded music, streaming represented 75% in the first half of 2018.
Digital downloads represented only 12% during the period, with physical sales of CDs and vinyl accounting for 10% and synch representing 3%.