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News and Notes on 2013 RIAA Music Industry Shipment and Revenue Statistics
Joshua P. Friedlander
Vice President, Strategic Data Analysis, RIAA
In 2013, strong growth in streaming revenues
contributed to a US music industry that was stable
overall at $7 billion for the fourth consecutive year.
Figure 1
Overall, this was a decrease of 0.3% versus 2012
revenues (at wholesale, the industry was $4.8 billion, up
1.9% versus 2012).
The increase in digital sales was driven by streaming
music services, which at $1.4 billion were up 39% versus
2012. This category includes revenues from
subscription services (such as Rhapsody and paid
versions of Spotify, among others), streaming radio
service revenues that are distributed by SoundExchange
(like Pandora, SiriusXM, and other Internet radio), and
other non-subscription on-demand streaming services
(such as YouTube, Vevo, and ad-supported Spotify).
Figure 2
These streaming services have grown rapidly over recent
years, contributing 21% of total industry revenues in
2013, compared with just 3% in 2007.
Figure 3
Paid subscription services grew the fastest of the digital
formats, up 57% to $628 million in 2013. Growth came
not just in dollars, but in the number of subscribers as
well, with the annual average totaling over 6 million
subscriptions.
Figure 4
Overall, digitally distributed formats grew 7.6% to $4.4
billion, a new high, and accounting for 64% of the overall
market by value (note Synchronization excluded from
this figure).
Figure 5
Specifically, revenues from permanent digital downloads
(including albums, single tracks, videos, and kiosk sales)
declined 1.0% to $2.8 billion. There were 118.0 million
digital albums sold in 2013, up just 1.1% versus 116.7
million in 2012. Total value of digital albums was $1.2
billion, up 2.4% versus the prior year. Digital track sales
volume was down 4.5% to 1.3 billion, and the total sales
value of tracks was down 3.4% to $1.6 billion.
Shipments in physical formats continued to decline in
2013, overall down 12% in value from $2.8 billion in 2012
to $2.4 billion in 2013. CDs continued to be by far the
largest physical format with 87% of the physical market.
Vinyl continued to buck the physical sales trends as
shipments grew 33% to $211 million in 2013.
Revenues from Synchronization were $189.7 million,
down 0.5% versus 2012.
Overall, 2013 sales results show the continuing
emergence of streaming music models as meaningful
contributors to industry revenues. As recently as 2009,
95% of US music industry revenues came from
traditional purchasing (with the majority in physical
formats). In 2013, 21% of revenues came from
streaming models, where fans can listen to vast libraries
of music either for free or as part of a subscription, and
nearly 2/3 of total revenues came from digitally
distributed formats. All of this shows the music industry
today has grown into a diverse digital business teeming
with a wide variety of innovative services catering to all
types of music fans.
Figure 6
Please note that the RIAA presents the most up-to-date information available in its annual industry revenue
reports and subscription-only online statistics database
(http://www.riaa.com/keystatistics.php?content_selector=riaa-shipment-database-log-in).
Based on additional market research, historical data has been updated for 2012.
For news media inquiries, please contact: Jonathan Lamy
Cara Duckworth Weiblinger
Liz Kennedy
202/775-0101
United States Unit Shipments and Estimated Retail Dollar Value
(In Millions, net after returns)
Digital Permanent Download
(Units Shipped) 1,392.2 1,328.9 -4.5%
(Dollar Value) $1,623.6 $1,569.0 -3.4%
116.7 118.0 1.1%
$1,204.8 $1,233.5 2.4%
2.0 3.7 90.6%
$3.7 $6.1 67.9%
10.5 8.4 -19.6%
$20.8 $16.8 -19.6%
69.3 39.2 -43.4%
$166.9 $97.6 -41.5%
Digital Subscription & Streaming
$462.0 $590.4 27.8%
3.4 6.1 81.3%
$399.9 $628.1 57.1%
$170.9 $220.0 28.7%
TOTAL DIGITAL VALUE $4,052.7 $4,361.5 7.6%
$190.6 $189.7 -0.5%
Physical
(Units Shipped) 198.2 172.2 -13.1%
(Dollar Value) $2,485.6 $2,123.5 -14.6%
1.1 0.6 -41.4%
$3.2 $2.4 -24.2%
6.9 9.4 35.2%
$160.7 $210.7 31.1%
0.4 0.3 -18.8%
$4.7 $3.0 -37.2%
6.0 4.7 -21.8%
$116.6 $104.7 -10.2%
0.0 -0.1 -711.1%
$0.2 -$0.5 -371.0%
0.1 0.0 -30.8%
$1.3 $1.0 -27.1%
Total Physical Units 212.7 187.2 -12.0%
Total Physical Value $2,772.4 $2,444.8 -11.8%
Total Retail Units 182.9 159.1 -13.0%
Total Retail Value $2,584.3 $2,267.7 -12.3%
1,803.3 1,685.6 -6.5%
$7,015.7 $6,996.1 -0.3%
% of Shipments8
2012 2013
Physical 41% 36%
Digital 59% 64%
Retail Value is the value of shipments at recommended or estimated list price
Formats with no retail value equivalent included at wholesale value.
Note: Historical data updated for 2012 and 2011
1
Includes Singles and Albums
2
Includes Master Ringtunes, Ringbacks, and prior to 2013 Music Videos, Full Length Downloads, and Other Mobile
3
Estimated payments in dollars to performers and copyright holders for digital radio services under statutory licenses
4
Streaming, tethered, and other paid subscription services not operating under statutory licenses.
Volume is annual average number of subscribers for subscription services.
5
Ad-supported audio and music video services not operating under statutory licenses.
6
Includes fees and royalties from synchronization of sound recordings with other media
7
Units total includes both albums and singles, and does not include subscriptions or royalties
8
Synchronization Royalties excluded from calculation
Permission to cite or copy these statistics is hereby granted, as long as proper
attribution is given to the Recording Industry Association of America.
TOTAL DIGITAL AND PHYSICAL
Total Units7
Total Value
On-Demand Streaming (Ad-Supported)5
LP/EP
Vinyl Single
Music Video
DVD Audio
SACD
Synchronization Royalties6
CD
CD Single
Download Album
Kiosk1
Music Video
Ringtones & Ringbacks2
SoundExchange Distributions3
Paid Subscription4
2012 2013
% CHANGE
2012-2013
Download Single
2013 Year-End Industry Shipment and Revenue Statistics
202-775-0101
Foralistofauthorizedservicesseewww.whymusicmatters.com

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News and Notes on 2013 RIAA Music Industry Shipment and Revenue Statistics

  • 1. News and Notes on 2013 RIAA Music Industry Shipment and Revenue Statistics Joshua P. Friedlander Vice President, Strategic Data Analysis, RIAA In 2013, strong growth in streaming revenues contributed to a US music industry that was stable overall at $7 billion for the fourth consecutive year. Figure 1 Overall, this was a decrease of 0.3% versus 2012 revenues (at wholesale, the industry was $4.8 billion, up 1.9% versus 2012). The increase in digital sales was driven by streaming music services, which at $1.4 billion were up 39% versus 2012. This category includes revenues from subscription services (such as Rhapsody and paid versions of Spotify, among others), streaming radio service revenues that are distributed by SoundExchange (like Pandora, SiriusXM, and other Internet radio), and other non-subscription on-demand streaming services (such as YouTube, Vevo, and ad-supported Spotify). Figure 2 These streaming services have grown rapidly over recent years, contributing 21% of total industry revenues in 2013, compared with just 3% in 2007. Figure 3 Paid subscription services grew the fastest of the digital formats, up 57% to $628 million in 2013. Growth came not just in dollars, but in the number of subscribers as well, with the annual average totaling over 6 million subscriptions. Figure 4 Overall, digitally distributed formats grew 7.6% to $4.4 billion, a new high, and accounting for 64% of the overall market by value (note Synchronization excluded from this figure).
  • 2. Figure 5 Specifically, revenues from permanent digital downloads (including albums, single tracks, videos, and kiosk sales) declined 1.0% to $2.8 billion. There were 118.0 million digital albums sold in 2013, up just 1.1% versus 116.7 million in 2012. Total value of digital albums was $1.2 billion, up 2.4% versus the prior year. Digital track sales volume was down 4.5% to 1.3 billion, and the total sales value of tracks was down 3.4% to $1.6 billion. Shipments in physical formats continued to decline in 2013, overall down 12% in value from $2.8 billion in 2012 to $2.4 billion in 2013. CDs continued to be by far the largest physical format with 87% of the physical market. Vinyl continued to buck the physical sales trends as shipments grew 33% to $211 million in 2013. Revenues from Synchronization were $189.7 million, down 0.5% versus 2012. Overall, 2013 sales results show the continuing emergence of streaming music models as meaningful contributors to industry revenues. As recently as 2009, 95% of US music industry revenues came from traditional purchasing (with the majority in physical formats). In 2013, 21% of revenues came from streaming models, where fans can listen to vast libraries of music either for free or as part of a subscription, and nearly 2/3 of total revenues came from digitally distributed formats. All of this shows the music industry today has grown into a diverse digital business teeming with a wide variety of innovative services catering to all types of music fans. Figure 6 Please note that the RIAA presents the most up-to-date information available in its annual industry revenue reports and subscription-only online statistics database (http://www.riaa.com/keystatistics.php?content_selector=riaa-shipment-database-log-in). Based on additional market research, historical data has been updated for 2012. For news media inquiries, please contact: Jonathan Lamy Cara Duckworth Weiblinger Liz Kennedy 202/775-0101
  • 3. United States Unit Shipments and Estimated Retail Dollar Value (In Millions, net after returns) Digital Permanent Download (Units Shipped) 1,392.2 1,328.9 -4.5% (Dollar Value) $1,623.6 $1,569.0 -3.4% 116.7 118.0 1.1% $1,204.8 $1,233.5 2.4% 2.0 3.7 90.6% $3.7 $6.1 67.9% 10.5 8.4 -19.6% $20.8 $16.8 -19.6% 69.3 39.2 -43.4% $166.9 $97.6 -41.5% Digital Subscription & Streaming $462.0 $590.4 27.8% 3.4 6.1 81.3% $399.9 $628.1 57.1% $170.9 $220.0 28.7% TOTAL DIGITAL VALUE $4,052.7 $4,361.5 7.6% $190.6 $189.7 -0.5% Physical (Units Shipped) 198.2 172.2 -13.1% (Dollar Value) $2,485.6 $2,123.5 -14.6% 1.1 0.6 -41.4% $3.2 $2.4 -24.2% 6.9 9.4 35.2% $160.7 $210.7 31.1% 0.4 0.3 -18.8% $4.7 $3.0 -37.2% 6.0 4.7 -21.8% $116.6 $104.7 -10.2% 0.0 -0.1 -711.1% $0.2 -$0.5 -371.0% 0.1 0.0 -30.8% $1.3 $1.0 -27.1% Total Physical Units 212.7 187.2 -12.0% Total Physical Value $2,772.4 $2,444.8 -11.8% Total Retail Units 182.9 159.1 -13.0% Total Retail Value $2,584.3 $2,267.7 -12.3% 1,803.3 1,685.6 -6.5% $7,015.7 $6,996.1 -0.3% % of Shipments8 2012 2013 Physical 41% 36% Digital 59% 64% Retail Value is the value of shipments at recommended or estimated list price Formats with no retail value equivalent included at wholesale value. Note: Historical data updated for 2012 and 2011 1 Includes Singles and Albums 2 Includes Master Ringtunes, Ringbacks, and prior to 2013 Music Videos, Full Length Downloads, and Other Mobile 3 Estimated payments in dollars to performers and copyright holders for digital radio services under statutory licenses 4 Streaming, tethered, and other paid subscription services not operating under statutory licenses. Volume is annual average number of subscribers for subscription services. 5 Ad-supported audio and music video services not operating under statutory licenses. 6 Includes fees and royalties from synchronization of sound recordings with other media 7 Units total includes both albums and singles, and does not include subscriptions or royalties 8 Synchronization Royalties excluded from calculation Permission to cite or copy these statistics is hereby granted, as long as proper attribution is given to the Recording Industry Association of America. TOTAL DIGITAL AND PHYSICAL Total Units7 Total Value On-Demand Streaming (Ad-Supported)5 LP/EP Vinyl Single Music Video DVD Audio SACD Synchronization Royalties6 CD CD Single Download Album Kiosk1 Music Video Ringtones & Ringbacks2 SoundExchange Distributions3 Paid Subscription4 2012 2013 % CHANGE 2012-2013 Download Single 2013 Year-End Industry Shipment and Revenue Statistics 202-775-0101 Foralistofauthorizedservicesseewww.whymusicmatters.com