Business

With $15 billion in sales, 2021 is the US record industry’s biggest year ever (sort of…)

Here’s the headline, people: The recorded US music industry generated $14.99 billion in 2021 – the largest annual figure in history.

blank

That statistic, revealed today by MBW, comes from RIAA annual year-end dataand up 23% (equivalent to 2.85 billion USD) compared to the same figure from 2020 (12.14 billion USD).

In fact, you need to go back to 1999 – more than two decades ago – to find the previous five peaks for US industry, when it generated $14.6 billion.

The 2021 figure also represents a significantly larger year-over-year currency growth for US industry (+2.85 billion dollars) than we see in 2020 (+ 1.02 billion dollars). ).

However, there are still some small prints that need to be done on board.

As Mitch Glazier, President and CEO of RIAA, explained in a new MBW op/ed: “We realized that, for many people, the crux of this report was the top figure of $15 billion in total recorded music sales.

“In nominal terms (not adjusted for inflation), that is the highest annual revenue figure in our industry history, surpassing the $14.6 billion reported in 1999, just before when digital piracy wipes out more than half of the economic value of recorded music.

“But in inflation-adjusted dollars, last year’s figure was 37% lower than it was in 1999. We still have plenty of room to grow – hitting and surpassing music’s historic values. ”

(Glazier finished his money: Theo US Bureau of Labor Statisticss, $15.0 billion in the first quarter of 2021 is worth the equivalent of about $9.4 billion in the same period in 1999.)

On a wholesale basis — that is, money going back to record labels, distributors, and ultimately artists — the US record music industry generated $9.8 billion in 2021. .

According to RIAA data, this is an increase of $1.8 billion (+22.5%) from the equivalent of $8.0 billion from 2020.



There are also plenty of other interesting statistics for us to dig into in the latest RIAA report.

First, streaming: Total streaming revenue generated by the US record industry in 2021 amounts to $12.44 billion, up 24% (or $2.39 billion) over the same period. period last year.

That $12.44 billion represents 83% of the total annual sales of the US market.

However, it also includes a wide range of online income sources, including paid subscriptions, ad-supported music streaming services, digital and custom radio stations, plus licenses for music on Facebookfitness app and – for the first time – TikTok.


Breaking it down even further, revenue from paid subscriptions will grow only 23% ($1.79 billion) to $9.48 billion in 2021. This revenue from paid subscriptions accounts for nearly two-thirds total market revenue and 76% of streaming revenue.

(This $9.48 billion premium subscription includes what the RIAA calls ‘limited level subscriptions’ on services limited by factors such as mobile access, availability of catalog, product features or device limitations Music services included in the ‘limited level’ include Amazon Excellent, Pandora Also, along with music licenses for digital fitness apps.)

About the facade from reward only pay for subscription services (Spotify Reward, Apple Music, Amazon Music Unlimited etc.), the US recorded music industry generated $8.57 billion in 2021, up 23% (or $1.60 billion) from the same period last year.

And ad-supported on-demand streaming (through services like YouTubead-supported versions of Spotify, Facebook, and TikTok) grew 47% in 2021 to $1.76 billion.



The number of paid subscriptions in the United States for on-demand music services grew 11% in 2021 to 84.0 million.

This is an increase of 8.5 million compared to the number of paid subscriptions in 2020 (75.5 million), but represents a deceleration in growth in this metric: in 2020, subscriptions increase by 15.1 million compared to the same period last year.

(These subscription numbers exclude tiered services and count multi-user plans as a single subscription.)



2021 is also an important year for physical formats: the RIAA reports that, for the first time since 1996, both CD and vinyl grew in sales in the same year.

Vinyl sales grew 61% to $1.04 billion in 2021, the format’s 15th consecutive year of growth.

Meanwhile, CD sales have rebounded since the Covid lockdown in 2020.

In 2021, CD sales grew 21% to $584 million, the first annual increase in CD sales since 2004.



Summarizing the numbers of the year, Mitch Glazier commented: “The turning of a deep recession into years of growth leading up to today’s earnings report is testament to the strength of the partnership between the label and the modern artist. For a forward-looking industry, nothing is obvious, celebrate the unique power of music to connect and inspire, while refusing to stand still or accept the status quo.

“The turning of a deep recession into years of growth leading up to today’s earnings report is testament to the strength of the partnership between the label and the modern artist.”

Mitch Glazier, RIAA

“No industry in history has embraced changing technologies and innovations faster than music over the past ten years – taking streaming from novelty to ubiquitous in the blink of an eye and now working to drive a new generation of social apps, rich experience sharing and future opportunity blockchain/NFT. ”

See the detailed set of RIAA industry numbers for 2021 and 2020 below, and Make sure you view the organization’s annual in-depth report here.


Worldwide music business

https://www.musicbusinessworldwide.com/with-15bn-revenue-2021-was-the-us-record-industrys-biggest-ever-year-kind-of/ With $15 billion in sales, 2021 is the US record industry’s biggest year ever (sort of…)

Fry Electronics Team

Fry Electronics.com is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@fry-electronics.com. The content will be deleted within 24 hours.

Related Articles

Check Also
Close
Back to top button