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Industry NewsB2C

US music subscriptions top 100 million for the first time

Published

Mar 25, 2025

TopicB2C
Credit: Outlever

TL;DR

  • The U.S. music industry surpasses 100 million paid subscriptions for the first time in 2024, according to the RIAA.
  • Streaming services dominate the market, contributing 84% of total revenues and driving a 3% year-on-year increase in industry revenue to $17.7 billion.
  • Despite price hikes from major players like Spotify, subscriber growth remains strong, indicating consumer willingness to pay for premium services.

Author

Paddle News Desk

The number of paid music subscriptions in the U.S. has officially crossed the 100 million mark for the first time, according to the Recording Industry Association of America’s 2024 year-end report.

Streaming steams ahead: The RIAA report shows the industry experienced a 3% increase in total revenue, reaching $17.7 billion in estimated retail value. ​Streaming services continue to be the primary revenue driver, accounting for 84% of total revenues. Paid subscription services within this category grew by 5% to $11.7 billion, representing nearly two-thirds of total revenue.

Vinyl persists: Physical format revenues saw a 5% increase, totaling $2 billion. Vinyl records experienced their eighteenth consecutive year of growth, with revenues rising 7% to $1.4 billion. Vinyl albums outsold CDs for the third year in a row, with 44 million units shipped compared to 33 million CDs.

​Downloading drops: Meanwhile, revenue from digitally downloaded music continued its downward trend, decreasing by 18% to $336 million. Downloads now account for just 2% of U.S. recorded music revenues, down from a peak of 43% in 2012. ​

Price hikes tolerated: Spotify, the market leader in paid subscriptions, raised its individual plan price in the U.S. from $9.99 to $10.99 in 2023, with Apple and Amazon following suit. Despite initial concerns over consumer pushback, subscriber growth remained strong, suggesting that users are willing to pay more for enhanced services and a seamless experience.

Future trends: Looking ahead, the industry is eyeing growth in immersive audio, AI-powered music recommendations, and global expansion. But for now, surpassing the 100 million mark cements the U.S. as the world’s largest and most lucrative subscription streaming market.