As streaming services like Spotify, Rdio, and Pandora grow more and more popular and new streaming services, like ones invested in by Jay-Z and Phish, start to appear, it’s become clear that on-the-go, subscription services for music is a fast-growing market. Though music streaming services have been growing for some time now, 2014 was the first year that music streaming services brought in more revenue than physical CD sales - an impressive, but not unexpected, statistic.
According to a report by the Record Industry Association of America (RIAA), music streaming services in 2014 brought in a whopping $1.87 billion, compared to $1.85 billion for physical CD sales. Though this was the first time in history that streaming has overtaken record sales, it should not come as a surprise, as streaming profits have been on the rise for a number of years, and grew 29% within the last year.
Though CD sales are down, physical formats of media still capture a greater market share than streaming services, 32% compared to 27%. Physical formats include CDs and vinyls, which are making a resurgence, as vinyl sales are in the double-digits and brought in $315 million in the last year alone.
Check out the chart below, which shows what formats reign supreme for now.