On March 30th 2016, the Recording Industry Association of America (RIAA) announced that streaming music platforms have become the music industry's number one source for revenue. The news came as the RIAA released its annual report that stated that music sales were up by 11.4% in 2016 to $7.7 billion. The report further stated that streaming led the charge by accounting for more than half, or 51.4% of all reported revenue.
Music industry revenue had been hovering around $7 billion a year, without showing much in the way of growth since 2010. But, that has now changed, due to the rise of on demand streaming services such as YouTube, Apple Music, Spotify, and TIDAL. Online radio streaming services such as Pandora and iHeartRadio followed as the second source of revenue, showing a 10% increase in growth of $883.9 million.
Sales of music downloads were down in 2016 by 21.6% bringing in about $1.6 billion. But, while the sale of both single tracks and albums was down, the report found that more people who chose to buy downloads are now buying full albums more than ever before. In fact, albums made up 49% of all music downloads. Meanwhile, CD sales have fallen sharply. Only 99.4 million full length CDs were sold in 2016, marking the first time since 1986 that fewer than 100 million were sold.
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