Over 100 Million in the U.S. Now Pay for Music Streaming, But Growth Slows

The Recording Industry Association of America (RIAA) has confirmed in its latest annual report that the number of paid music streaming subscriptions in the U.S. has surpassed 100 million as of 2024. This milestone underscores the dominance of streaming in the music industry. However, the report also indicates that revenue growth is slowing—while U.S. recorded music revenue reached an all-time high of $17.7 billion (approximately £13.9 billion) in 2024, the growth rate has declined to just 3%, down from 8% the previous year. This trend suggests that the market is nearing saturation, with limited room for new subscribers.

Streaming remained the dominant source of revenue, accounting for 84% of the market. Meanwhile, the physical music market remained steady. Vinyl sales continued their strong performance, generating $1.4 billion (approximately £1.1 billion) and once again surpassing CDs in both revenue and units sold. CD sales also saw a slight rebound, increasing from 32.4 million units in 2023 to 32.9 million in 2024. Overall, physical music revenue grew by 5.4% to just over $2 billion (approximately £1.6 billion).

On the other hand, digital downloads continued their decline, with revenue dropping 14.9% to just $369.7 million (approximately £290 million). As streaming revenue growth slows, industry insiders anticipate that platforms may raise subscription prices and introduce premium tiers to drive further revenue.

RIAA CEO Mitch Glazier stated, “Twenty years into the streaming era, over 100 million paid subscriptions now deliver two-thirds of industry revenues, a historic milestone powering America’s music economy forward. It’s an extraordinary achievement by an industry that has successfully focused on its creative and commercial core by championing innovative new services, options, and experiences that add real value for fans.”