Recorded-Music Retail Revenue Jumped 17% on Streaming Services, Says RIAA, Noting 'Value Gap'

Retail revenue from recorded music in the U.S. rose 17 percent to $4 billion in the first half of 2017 from the same period last year, RIAA said. At wholesale value, the industry increased to $2.7 billion, up 15 percent, but "significantly below" 1999 levels. Revenue from music subscription streaming services grew 48 percent to $2.5 billion for the first half of 2017, over the same period in 2016. Streaming services had 62 percent of the total market, and continued to offset declines in traditional unit based sales, said RIAA Wednesday. "The streaming category includes revenues from subscription services (such as paid versions of Spotify, Tidal, and Apple Music, among others), digital and customized radio services including those revenues distributed by SoundExchange (like Pandora, SiriusXM, and other Internet radio), and ad-supported on-demand streaming services (such as YouTube, Vevo, and ad-supported Spotify)." CEO Cary Sherman blogged that his group estimates there may be a trillion streams this year from both on-demand services and digital radio. "That staggering number ... also speaks to the foundational challenge" as payouts to creators "are very different and vastly impacted by outdated or abused laws and regulations," he wrote. "A united music community continues to be incredibly animated about music’s 'value gap' and calls upon policymakers -- and our business partners -- across the globe to do better and address these inequities." In an International Federation of the Phonographic Industry report Tuesday (see 1709190075 and 1709190031) on audio streaming trends, IFPI CEO Frances Moore said the music industry’s “value gap” remains the biggest threat facing the music world.