RIAA Midyear 2025: Revenue Hits $5.6B But Growth Slows

According to the RIAA, wholesale revenue increased marginally from $5.537 billion to $5.589 billion, marking a less than one percent growth from 2024. This stagnation suggests that the initial boom of the streaming era may have reached its peak saturation point. The association has transitioned to a reporting system based solely on wholesale data rather than retail, aligning with global standards like the IFPI’s annual report. Wholesale figures typically present a lower revenue estimate than retail. For instance, last year's wholesale figure was around $5.5 billion, while retail stood at $8.7 billion.

The flat overall growth contrasts with the robust performance of paid streaming subscriptions, which surged by 5.7 percent to exceed $3.2 billion. The number of subscriptions also rose significantly, surpassing 100 million for the first time, reflecting a 6.4 percent increase. Mitch Glazier, RIAA's CEO, emphasized these milestones as indicators of music’s enduring value and the importance of record labels' support for artists. Despite this, free streaming revenue decreased by nearly three percent to $875 million, illustrating the challenges in monetizing non-subscription streaming.

Physical media continued its decline, with digital downloads dropping 1.4 percent to $138 million. Physical revenue fell by almost six percent to $576.4 million. Within this category, vinyl records, which have seen a resurgence, slightly decreased by one percent in both units sold and revenue, totaling $457 million from about 22.1 million units. Meanwhile, CD units and revenue experienced a steep decline of 22 percent, with sales falling to 11.7 million units and revenue to $108 million. Vinyl has outsold CDs for the fifth consecutive year, as noted by the RIAA.

Despite the slowed growth, RIAA's Vice President of Research, Matt Bass, remains optimistic, citing the stable and sustainable foundation of the U.S. music market. He highlighted the global impact of American artists, who account for one-third of worldwide streams. Bass also pointed out that aligning the RIAA's reporting with international standards clarifies the industry's narrative, showcasing America's significant contribution to global music consumption.