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In a rather bizarre turn of events, CDs and vinyl records are making a comeback. according to CNETboth physical media now earn more money than the iTunes Store, which dominated the industry about four years ago. Streaming also continues to grow and propel the music industry.
The report says that digitally downloaded music, including iTunes, accounted for only 11% of the revenue generated by American labels last year. CDs and vinyl have a slight advantage at 12%. Clearly, streaming music is the big winner, with 75% of last year's revenue.
The downloads accounted for only 11% of the revenue of American labels last year, announced Thursday a group specializing in the music industry. Physical sales – the term for the music formats that you can actually keep, which are mostly CDs and LPs at this point – have increased by 12%. Instead, streaming music was stifling the demand for downloads. Streamed sales accounted for 75% of last year's revenue.
In 2015, streaming and digital downloads were on a par with each representing about 34% of the market. Now, with services such as Apple Music and Spotify facilitating the acquisition of music, streaming has taken over.
The good news is that physical media are not dead yet. Retail revenues from physical copies such as CDs and vinyl records rose about 12% last year, bringing in $ 9.85 billion.
Music subscriptions for services such as Apple Music and Spotify grew by 33 percent to $ 4.66 billion. This number does not include "limited-level" subscriptions such as Pandora Plus or Amazon Prime Music. Limited-level subscriptions earned $ 747.1 million, up 26%.
For services that allow you to stream music in "free" (ad-based) mode, such as the free level of Spotify, YouTube, or Vevo, the total amount is $ 759 million, up 15%.
Digital downloads fell 26% to $ 1.04 billion, and physical sales increased 23% to $ 1.15 billion. However, vinyl records rose 7.9% to $ 419.2 million, while physical sales fell overall.
Do you still buy music on iTunes or physical media such as CDs or LPs? Let us know in the comments below!
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