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Music Revenues Grow in H1 2023, But Streaming Subscriptions Slow Down

The US recorded music industry generated $8.4 billion in retail revenues in the first half of 2023, according to the latest report from the Recording Industry Association of America (RIAA). This represents a 9.3% year-on-year increase, driven by the growth of streaming services, which accounted for 84% of the total revenues.

- Based on an article by Murray Stassen on Music Business Worldwide, Sept 18, 2023.

However, the report also reveals that the number of paid subscriptions to on-demand streaming services, such as Spotify and Apple Music, grew at a slower pace than in previous years. The average number of subscriptions in H1 2023 was 95.8 million, up by 5.8 million from H1 2022. In comparison, the average number of subscriptions in H1 2022 was 90 million, up by 10 million from H1 2021.

One of the possible reasons for this slowdown is the price increases that some streaming services implemented in the US market in 2023. For example, Spotify raised its monthly fee for its family plan from $14.99 to $15.99, and its student plan from $4.99 to $5.99. Apple Music also increased its prices for its individual and family plans by $1 each.

Another factor that may have affected the growth of streaming subscriptions is the competition from other forms of entertainment, such as video games, podcasts and social media platforms. The RIAA report notes that "the pandemic has changed consumer behavior and preferences in ways that are not yet fully understood".

Despite these challenges, streaming remains the dominant source of revenue for the US recorded music industry, generating $7 billion in H1 2023, up by 10.3% from H1 2022. Within streaming, paid subscription services contributed the most, with $5.5 billion in revenues, up by 11% year-on-year.

To read more about the RIAA report and its implications for the music industry and artists, you can visit the original article at Music Business Worldwide.


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