The Recording Industry Association of America released report data demonstrating the power of the vinyl revolution. Americans purchased 40 million records in 2021, equating to over $1 billion USD. This is the highest revenue generated by record sales since 1986.
CDs are also on the rise, with sales increasing for the first time in just under a decade, indicating that as convenient as music streaming and digital downloads are, consumers are still interested in physical ownership.
Credit: RIAA
Majority of annual music revenue comes from digital platforms such as streaming services and downloads, equating to $12.4 billion in revenue (24% higher than 2020) and around 83% of the total $15 billion (23% higher than 2020).
The RIAA 2021 report also revealed that paid subscriptions are still dominating the way in which we consume music, making up 76% of streaming revenue and around 63% of total music revenue at $9.5 billion.
Digital downloads were the one area of the music industry that saw a decline in revenue, reaching $587 million (12% lower than 2020). Digital album sales also decreased 12% to $282 million and individual track downloads plummeted 15% to $256 million.
The most staggering statistic however is the growth of physical media. For the first time since 1996, both vinyl and CD sales increased simultaneously.
Credit: RIAA
Vinyl records have increased consistently over the last 15 years, a whipping 60% for 2021. CD sales grew 21% too, reaching revenue of $584 million. Despite CDs once being set to kill of vinyl, they generate just over half the revenue.
Total music sale revenues are the highest they’ve ever been at $15 billion, demonstrating that the music industry is more accessible than ever before.
