US retail music business flat in 2014 with streaming gains offset by decline in CD sales

NEW YORK, N.Y. – The U.S. retail music business was essentially flat in 2014 as growth in streaming revenue helped offset further decline in sales of CDs, a report from the Recording Industry Association of America said Wednesday.

Overall, retail revenue declined about half of a per cent to $6.97 billion. Wholesale revenue for the recorded music industry, meanwhile, grew 2 per cent to $4.86 billion.

The industry’s revenue mix last year was more balanced between physical, digital and streaming sources than ever before, the RIAA said. Permanent downloads made up 37 per cent of the total market, down from 40 per cent in 2013. Streaming revenue was 27 per cent of the total, up from 21 per cent a year earlier.

Physical shipment revenue was 32 per cent of the total, down from 35 per cent. CD sales continued to decline, though they still make up by far the largest category when it comes to physical products. CD sales fell 12.7 per cent to $1.85 billion. Vinyl records, meanwhile, continued their resurgence, growing 49 per cent to $315 million.

Streaming revenue from paid subscription services grew 25 per cent to $799 million. Revenue from ad-supported services increased 34 per cent to $295 million. Revenue from services distributed by SoundExchange, such as Pandora, SiriusXM and other Internet radio providers, grew 31 per cent to $773 million.