Streaming Services Generated More Than 50% of All U.S. Music Industry Revenue in 2016

Streaming music services were for the first time ever responsible for more than 50% of all U.S. music industry revenue in 2016, according to new numbers released by the Recording Industry Association of America ( RIAA ) Thursday.

Paid and ad-supported streaming together generated 51% of music revenue last year, to be precise, bringing in a total of $3.9 billion. In 2015, streaming music was responsible for 34% of the music industry's annual revenue.

Much of that increase can be attributed to a strong growth of paid subscriptions to services like Spotify and Apple Music . Revenue from paid subscription plans more than doubled in 2016, bringing in $2.5 billion, with an average of 22.6 million U.S. consumers subscribing to streaming services last year. The year before, subscription services had an average of 10.8 million paying subscribers.

The RIAA once again used its report to lambast ad-supported streaming services for not contributing enough. RIAA chairman Cary Sherman called for a change in copyright laws to do away with safe-harbor protections for YouTube and other platforms carrying user-generated content Thursday, complaining in a blog post that the current legal framework "feels like a rigged system."

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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