US recorded song revenues hit $7.7bn in H1 2022, however expansion slowed in comparison to H1 2021

MBW’s Stat Of The Week is a sequence through which we spotlight a unmarried knowledge level that merits the eye of the worldwide song trade. Stat Of the Week is supported by way of Cinq Track Workforce, a technology-driven report label, distribution, and rights control corporate.

The USA recorded song marketplace grew in H1 2022 – however most effective part as speedy because it did in H1 2021.

On a retail foundation, recorded song revenues in the USA (cash spent on streaming subscriptions, in addition to bodily and virtual song), grew $700 million YoY to $7.7 billion within the first part of this yr (up from $7 billion in H1 2021).

Again in H1 2021, on a retail foundation, US recorded song revenues grew by way of $1.4 billion YoY to $7 billion (see beneath).

In different phrases, mid-year recorded song expansion observed in H1 2022 used to be minimize in part in comparison to H1 2021.

It used to be the similar tale for midyear wholesale (business) revenues: Those hit $4.9 billion in H1 2022, up $300 million YoY; in H1 2021, the an identical determine ($4.6bn) used to be up by way of $600 million YoY.

Those new stats have been revealed these days (September 21) by way of the Recording Trade Affiliation of The us (RIAA), in its 2022 Mid-Yr Track Trade Earnings Document.

The important thing reason why for this slower general recorded song marketplace expansion in H1 2022 is on account of slower song streaming expansion.

Together with paid subscription products and services, ad-supported products and services, virtual and custom designed radio, streaming grew 10%, from $5.9 billion in H1 2021 to $6.5 billion within the first part of 2022.

That represented YoY expansion, in income phrases, of $600 million. 

Within the prior yr length, then again (H1 2021), US midyear Streaming Track revenues grew, in income phrases, by way of $1.2 billion YoY to $5.9 billion.

Streaming Track’s percentage of overall trade retail revenues used to be just about flat in H1 2022, at 84%.

Digging deeper into RIAA’s mid-year knowledge finds that paid subscriptions have been the biggest motive force of song revenues in H1 2022, rising 10% YoY to $5.0 billion.

In line with the RIAA, this overall incorporated $525 million in revenues from “Restricted Tier” paid subscriptions (for products and services restricted by way of components comparable to cellular get right of entry to, catalog availability, on-demand boundaries, or software restrictions). Products and services like Amazon Top, Pandora Plus, song licenses for virtual health apps, and different subscriptions are incorporated on this class.

The RIAA studies that the common collection of paid subscriptions to on-demand song streaming products and services in H1 2022 reached a report 90 million, up 10% when compared with 82 million for H1 2021. (Those figures rely multi-user plans as a unmarried subscription, and exclude limited-tier products and services.)

Advert-supported on-demand streaming song revenues (from products and services like YouTube, the ad-supported model of Spotify, Fb and TikTok) grew 16% YoY by way of income in H1 2022 to $871 million.

The RIAA studies that this “expansion comes on most sensible of the sturdy rebound the class skilled in 2021 relative to the Covid-19 impacted comparability length the yr earlier than that”.

The RIAA additionally studies that “after outstanding expansion in 2021 when compared with a Covid-19 shutdown impacted earlier yr”, vinyl data endured to upward thrust in H1 2022.

Revenues from vinyl albums grew 22% to $570 million, and vinyl’s percentage of the bodily marketplace larger from 68% to 73%.

Revenues from CDs fell 2% to $200 million, and accounted for 26% of bodily revenues.

Commenting at the stats revealed within the RIAA’s mid-year document, RIAA CEO Mitch Glazier, stated: “Nowadays we’re happy to unencumber sturdy U.S. recorded song income figures of $7.7 billion for the primary part of 2022.

“The ones effects replicate the fantastic ingenious and industrial partnerships artists and labels have solid that experience powered any other extraordinarily a success part yr. Streaming revenues from paid subscriptions, ad-supported products and services, and different codecs grew 10% to $6.5 billion all over this era.

“And the collection of paid subscriptions crowned 90 million for the primary time. Streaming’s longer term of good fortune displays the energy of the trendy song economic system and the price customers have present in song subscriptions in addition to labels’ tireless paintings creating further resources and streams of income together with ad-supported choices on brief shape video and social media platforms in addition to health apps and video and soundtrack placement.”

“Nowadays’s document is excellent news for artists, songwriters, streaming products and services, and fanatics — everybody with a stake in song’s long run.”

Mitch Glazier, RIAA 

He endured: “Nowadays’s document is excellent news for artists, songwriters, streaming products and services, and fanatics — everybody with a stake in song’s long run. We in point of fact are seeing the ability of recorded song’s emerging tide to raise all boats around the song circle of relatives.

“We’re pleased with the ingenious and industrial accomplishments mirrored within the sturdy effects reported these days. However to succeed in true good fortune, we should transcend the stability sheet and paintings to advance basic song group values.”

Cinq Track Workforce’s repertoire has gained Grammy awards, dozens of Gold and Platinum RIAA certifications, and a lot of No.1 chart positions on quite a lot of Billboard charts. Its repertoire comprises heavyweights comparable to Unhealthy Bunny, Janet Jackson, Daddy Yankee, T.I., Sean Kingston, Anuel, and loads extra.

 Track Industry International