Apple Music on iPhone XS

Streaming Music was 75% of The Music Industry’s US Revenue in 2018

In the year end report from the Recording Industry Association of America (RIAA), streaming music accounted for 75% of the industry’s revenue in the United States in 2018. Revenue from streaming service grew 30% year-over-year and hit $7.4 billion. This added to the overall growth of the industry. Revenue for the year was up $1 billion over 2017, hitting $9.8 billion. That is a growth rate of 12%

Revenues from streaming music platforms grew 30% year-over-year to reach $7.4 billion, contributing 75% of total revenues for 2018, and accounting for virtually all
the revenue growth for the year. The streaming category includes a wide variety of formats including premium
paid subscription services, ad-supported on-demand services (i.e. YouTube, Vevo, and ad-supported Spotify), and streaming radio services including those that distribute revenues through SoundExchange (including Pandora, SiriusXM, and other internet radio services).

RIAA 2018 Revenue Breakdown
RIAA 2018 Revenue Breakdown

Apple Music, Spotify, Pandora, and Google Play Music are all examples of streaming music services and while the report does not break down the top services, Apple and Spotify dominate the space. Spotify has some 87 million subscribers while Apple Music has 50 million.

According to the RIAA report, paid subscriptions to music streaming services grew 42% and has reached a total of 50.2 million paid subscribers. Meanwhile, revenue from ad-supported services grew 15% for the year, contributing $760 million in revenue.

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