The Resilience of Physical Media in the Music Industry

Despite the continued dominance of streaming services in the recorded music sector, physical media still maintains a significant presence. According to the Recording Industry of America’s annual report, vinyl record sales have increased for the 18th consecutive year in the US, reaching a revenue of $1.4 billion – the highest since 1984, when CDs began to emerge.

Vinyl’s Enduring Popularity

Vinyl accounted for nearly three-quarters of physical format revenue in 2024, with 44 million shipments, surpassing CD sales of 33 million for the third consecutive year. The inclusion of sales figures from indie labels for the first time this year may have contributed to vinyl’s strong performance. Additionally, high-profile releases, such as Taylor Swift’s multiple vinyl editions of her album, The Tortured Poets Department, have likely boosted vinyl sales.

The Appeal of Physical Music Ownership

Many fans prefer to own physical copies of music, citing the superior audio quality and overall listening experience that vinyl provides compared to streaming services. Furthermore, purchasing physical music can be seen as a way to support artists more directly. Browsing record stores and discovering new music is also a enjoyable pastime for many. Moreover, owning physical records and CDs serves as a safeguard against the risk of music being removed from streaming services due to expired rights agreements or artist decisions.

Streaming Services Continue to Grow

Despite the resurgence of physical media, streaming services have reached a new milestone, with the average number of paid subscriptions in the US exceeding 100 million for the first time, representing a 3% increase from 2023. Revenue from paid subscriptions rose by 5% to $11.7 billion, while total streaming revenue grew by 4% to $14.9 billion. Streaming accounted for 84% of recorded music revenue for the third consecutive year.