Streaming Services Trump Physical CD Sales For the First Time Ever
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.