Originally posted by CallMePaul
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The Recording Industry Association of America (RIAA) just released its midyear compilation of recorded music industry sales data for 2020. Although the numbers follow trends that have existed in the industry for a few years, they hit a couple of important milestones: music downloads now bring in less revenue than physical products, and CDs are all but dead.
CDs represent the most astonishing change since last year. In 1999, at the music industry’s all-time revenue peak, CDs garnered $13 billion in sales, or almost 90% of music industry revenue. As file-sharing began to take its toll on the industry and revenues fell, CDs were the main casualty. Last year CDs only brought in $614 million or 5.5% of total revenue.
CDs’ year-over-year decreases in revenue hovered around the 20% from the mid-2000s until last year. But the downturn from the first half of 2019 to the first half of 2020 was 48%; CD sales were cut almost in half over the last year. CDs brought in only $130 million during the first half of this year; that’s only 2.3% of total industry revenue. CDs are now worth less to the industry than every category of music distribution other than tiny ones like ringtones and music video downloads.
As for paid downloads (mostly iTunes, now part of Apple Music), their decline continues at about the same pace as in the last few years. Downloaded albums and singles are down to $330 million for the first half of 2020; that’s 23% less than last year. Downloads hit their peak in 2012, during the music industry’s worst period since the RIAA started keeping sales records in the early 1970s. It’s clearer now than ever that paid downloads were merely a stopgap between physical products and streaming that did not help the industry recover from the file-sharing era.
Vinyl, on the other hand, appears to have plateaued. Its $232 million in revenue for the first half of this year is 3.6% ahead of last year—keeping up with inflation but slightly behind overall industry revenue growth of 5.6%. Vinyl’s peak relative to total industry revenue came in 2015, when it represented 5.5% of the total; now it’s at 4.1%.
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