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Music streaming service revenues grow 20% and reach US $ 8.8 billion

2019 seems to have been a good year for the music industry and especially for streaming services such as Spotify and Apple Music. In a year in which 79% of revenue in this sector in the United States is due to streaming services, revenue in this area increased by 20%, reaching 8.8 billion dollars. The data are from the Recording Industry Association of America and were released this Tuesday.

According to the annual report of the American association, in a decade much has changed. In 2009, most of the music industry's revenue was generated by physical purchases (59%), followed by digital downloads. Streaming came only in third place, with a percentage of 5%. However, last year the reality was very different, with this service dominating completely, and with physical purchases not exceeding 10%.

Music industry recipes in 2009 and 2019 Recording Industry Association of America

With regard to current figures, and driven by paid streaming, revenues from the recorded music market in the United States grew by 13%, to $ 11.1 billion. The data also shows that it was the paid subscriptions to the streaming services that most contributed to the increase in revenue from the music industry, reaching 6.8 billion dollars. This figure represents an increase of 25% over the previous year and 61% of the total revenue of the recorded music market in the United States.

The paid streaming services meant an average of more than one million new subscriptions per month, with the total number of paid subscribers in the USA exceeding 60 million. But what is the reason for this increase? For the American association, the quality of music and artists is the main reason, followed by new offers from companies, from online, offline and everywhere, in a year when Americans listened to 1.5 bilies of music in streaming.