{"id":51936,"date":"2023-09-18T15:05:22","date_gmt":"2023-09-18T19:05:22","guid":{"rendered":"https:\/\/www.cyberlego.com\/web\/2023\/09\/18\/four-takeaways-from-the-riaa-2023-mid-year-report-prices-rise-subscriptions-slow-more\/"},"modified":"2023-09-18T15:05:22","modified_gmt":"2023-09-18T19:05:22","slug":"four-takeaways-from-the-riaa-2023-mid-year-report-prices-rise-subscriptions-slow-more","status":"publish","type":"post","link":"https:\/\/www.cyberlego.com\/web\/2023\/09\/18\/four-takeaways-from-the-riaa-2023-mid-year-report-prices-rise-subscriptions-slow-more\/","title":{"rendered":"Four Takeaways From the RIAA 2023 Mid-Year Report: Prices Rise, Subscriptions Slow &amp;\u00a0More"},"content":{"rendered":"<p><!-- no image --><\/p>\n<div>\n<!-- do not apply CSS styles to this element! --><\/p>\n<div class=\"pmc-paywall\">\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\tHalfway through 2023, the U.S. recorded music industry has set a record for first-half retail revenue, generating $8.4 billion, according to the new <a href=\"https:\/\/www.billboard.com\/pro\/riaa-2023-mid-year-report-revenues-all-time-high\/\">RIAA mid-year 2023 report<\/a> released Monday (Sept. 18). But within that headline number, there are several trends and statistics that are worthy of their own exploration, from increasing revenue to slowing growth figures and the factors behind them. Digging deeper into the numbers, here are four takeaways (and a bonus fifth) from the mid-year report.<\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\t<strong>Ad-Supported Revenue Flatlines<\/strong><\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\tThe RIAA reported that ad-supported on-demand streaming revenue came in at $870.1 million \u2014 just a 0.6% bump over the $865 million it generated in the first half of 2022. Looking at the 2022 mid-year report, the ad-supported revenue figure was $871.5 million, up 16.4% from $748.5 million midway through 2021. (The RIAA regularly adjusts and updates figures each year as more data becomes available, hence the discrepancies.) What it points to, at best, is a stagnant advertising market; and at worst, one that risks going backwards. <\/p>\n<div class=\"injected-related-story \/\/ lrv-u-margin-tb-2 lrv-u-border-t-1 lrv-u-border-b-1 lrv-u-padding-t-050 lrv-u-padding-b-075 lrv-u-border-color-grey\">\n<div class=\"a-heading-border a-heading-border-background-color-grey a-heading-border-height-075 lrv-u-margin-b-075 lrv-u-margin-b-050@mobile-max\">\n<h3 id=\"title-of-a-story\" class=\"c-title  lrv-u-color-brand-primary a-font-primary-bold-s lrv-u-text-transform-uppercase lrv-u-padding-r-1 a-article-related-module-title a-article-related-module-title--color-brand-primary\">\n<p>\t\t\t\t\tRelated\t\t<\/p>\n<\/h3><\/div>\n<div class=\"o-card lrv-u-flex\">\n<p>\t\t\t<a tabindex=\"0\" href=\"https:\/\/www.billboard.com\/pro\/riaa-2023-mid-year-report-revenues-all-time-high\/\" class=\"lrv-u-flex lrv-a-unstyle-link lrv-u-color-brand-primary:hover\"><\/p>\n<div class=\"o-card__image-wrap lrv-u-flex-shrink-0 u-flex-basis-144 u-flex-basis-96@mobile-max\">\n<div class=\"c-lazy-image  lrv-u-height-100p\">\n<div class=\"a-crop-3x2 a-crop-1x1@mobile-max lrv-u-height-100p\">\n<p>\t\t\t\t\t\t<img decoding=\"async\" class=\"c-lazy-image__img lrv-u-background-color-grey-lightest lrv-u-width-100p lrv-u-display-block lrv-u-height-auto\" src=\"https:\/\/www.billboard.com\/wp-content\/themes\/vip\/pmc-billboard-2021\/assets\/public\/lazyload-fallback.gif\" data-lazy-src=\"https:\/\/www.billboard.com\/wp-content\/uploads\/2023\/07\/taylor-swift-eras-a-2023-jk-billboard-pro-1260.jpg?w=237&amp;h=147&amp;crop=1\" alt=\"Taylor Swift\" data-lazy-srcset=\"\" data-lazy-sizes=\"\" height=\"\" width=\"\"><\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"o-card__content lrv-u-flex lrv-u-flex-direction-column lrv-u-justify-content-center lrv-u-padding-lr-1 lrv-u-padding-lr-075@mobile-max\">\n<div class=\"o_category \">\n\t\t\t\t\t<\/div>\n<div class=\"c_title \">\n<h3 id=\"title-of-a-story\" class=\"c-title  a-font-primary-medium-m lrv-u-padding-b-050 u-letter-spacing-0028@mobile-max\">\n<p>\t\t\t\t\tU.S. Recorded Music Revenues Hit All-Time High of $8.4B in First Half of 2023:\u00a0RIAA\t\t<\/p>\n<\/h3><\/div>\n<p><time class=\"c-timestamp  a-font-primary-medium-xxs lrv-u-color-brand-primary lrv-u-order-100\" datetime=\"00:00-YY-DD-MM\"><br \/>\n\t09\/18\/2023<br \/>\n<\/time><\/p><\/div>\n<p>\t\t<\/a><\/p>\n<\/div><\/div>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\tOn one hand, it\u2019s not surprising, given the adverse advertising market across the board in 2023 so far. On the other hand, it\u2019s yet another blow to a part of the model for services like Spotify and YouTube that has been maligned for years and considerably detracts from the value of music. Still, revenue from the \u201cother ad-supported streaming\u201d category grew 56.8% year over year for an increase of $58 million after a few years of negligible growth at best.<\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\t<strong>The Big Pricing Shift<\/strong><\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\tIn the past two weeks, a lot of conversation in the industry has revolved around how royalties from streaming services should be divided moving forward. But the broader issue that many executives are, and have been, pointing to has been about pricing. Music streaming services have fallen behind the times in keeping the price of a monthly subscription largely static over the past decade-plus, while video streamers (with fractionalized offerings) have raised prices regularly. <\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\tThat\u2019s now starting to change \u2014 and it\u2019s being reflected in the numbers. Apple Music and Amazon Music both raised prices for their streaming services at the turn of the year, and that has translated into paid subscription streaming revenue growing 12.4% in the first half of 2023 \u2014 even as the average number of subscriptions grew at a much slower rate, increasing just 6.4% from 90 million to 95.8 million. With YouTube Music and, most critically, Spotify increasing prices over the summer \u2014 numbers that were not reflected in the first half of this year \u2014 the additional value realized will be something to keep an eye on moving forward.<\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\t<strong>But It\u2019s Not Just Streaming<\/strong><\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\tThose streaming service price hikes get a lot of attention \u2014 and rightly so. But the industry is seeing increased revenue from consumers in more than just streaming. The physical product market has continued to grow in revenue, up 5% overall, with vinyl revenue rising 1.3% year over year (up $8.2 million) and CD revenue growing 14.3% (up $29.6 million). What\u2019s more interesting \u2014 apart from, perhaps, the winding down of the \u201cvinyl explosion\u201d double-digit increase narrative of the past several years \u2014 is that both formats grew in revenue while being down in unit counts.<\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\tVinyl, overall, seemed to be a little static year over year. The number of records sold dropped by about 400,000 or so, even as revenue ticked up. But the discrepancy in CDs was stark: despite the type of double-digit revenue growth that\u2019s been associated with vinyl in years past, there were actually 3.2 million fewer CDs sold in the United States in the first half of 2023 compared to 2022. Whether that\u2019s a reaction to the hyper-fandom of artists who tend to do well in the physical market raising prices significantly or a marker of an industry-wide price hike there, it\u2019s another example of how pricing is shifting across the industry and changing the revenue picture as a result.<\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\t<strong>Subscriptions Slowing Down?<\/strong><\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\tAs noted above, the average number of paid music streaming subscriptions grew by 5.8 million in the first half of the year to 95.8 million. That represents the slowest level of growth \u2014 both in raw numbers and in percentage \u2014 since at least 2015, when the U.S. streaming industry was still in its nascent phases. The growth in the number of subscribers has been slowing down now for about five years straight, as those who haven\u2019t already gotten on board with paid music streaming slowly sign on. But it\u2019s unclear how much room for growth remains \u2014 and, either way, the focus will continue to shift from acquisition and retention to growing value.<\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\tAs subscriptions continue to near critical mass in the United States, the industry will need to continue its growth rate by convincing digital service providers to get more from the subscribers they already have. Whether that comes from price hikes or finding new ways to monetize fans on platforms \u2014 or, more likely, some combination of both \u2014 is an area to watch.<\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\t<strong>And, Finally\u2026<\/strong><\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\tA last word for our favorite sector of the RIAA report each year: ringtones and ringbacks. U.S. consumers spent $6.0 million on them in the first half of 2023 \u2014 down slightly from $6.2 million halfway through last year \u2014 while the unit count also slightly declined. We are a long way away from the Billboard Ringtones Chart of 2004, yet they continue to hang on as a line item year after half year. What a blessing.<\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.billboard.com\/pro\/riaa-mid-year-report-2023-takeaways-prices-rise-subscriptions-slow\/\">Aller \u00e0 la source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Halfway through 2023, the U.S. recorded music industry has set a record for first-half retail revenue, generating $8.4 billion, according to the new RIAA mid-year 2023 report released Monday (Sept. 18). But within that headline number, there are several trends and statistics that are worthy of their own exploration, from increasing revenue to slowing growth [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-51936","post","type-post","status-publish","format-standard","hentry","category-musique","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"_links":{"self":[{"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/posts\/51936","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/comments?post=51936"}],"version-history":[{"count":0,"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/posts\/51936\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/media?parent=51936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/categories?post=51936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/tags?post=51936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}