U.S Recorded Music Revenue Grew by 8% in 2023, Per RIAA Annual Report, but Layoffs and Slowing Growth Are Cause for Concern
variety.comJem Aswad Executive Editor, Music The U.S. recorded music industry grew its revenue by 8% in 2023, reaching an all-time high of $17.1 billion and marking eight consecutive years of growth.
However, there’s no question that the streaming boom of the past decade, which produced years of double-digit growth, is leveling off and the industry is reacting with layoffs and talk of a “transformational moment” in the months and years to come.
Streaming continues to drive the business, making up 84% of total revenues and now totaling $14.4 billion – hitting an all-time high of 96.8 million paid subscriptions to on-demand services.
Physical product (vinyl, CDs, cassettes) accounted for 11%; digital downloads for 3% and synch for 2%. However, the news arrives amid hundreds of layoffs at major music companies — totaling more than a thousand at Universal and Warner Music Groups, with more expected — concerns over AI, and efforts toward a new model for music companies, led by Lucian Grainge and Robert Kyncl, the CEOs of those companies.
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