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Lawyers for the RIAA are aiming to shut down a popular Discord server centered on artificial intelligence and voice models, the latest effort by music companies to rein in the disruptive new technology.
In an action filed last week in D.C. federal court, attorneys for RIAA obtained a subpoena demanding that Discord reveal the identities of users on “AI Hub,” a message board with 145,000 members that calls itself “a community dedicated to making AI voices and songs.”
In a letter to Discord presenting the company with the subpoena, the RIAA said those users had “infringed … copyrighted sound recordings” and that the tech company was required to hand over names, physical addresses, payment info, IP addresses and other identifying details.
The group’s lawyers also sent Digital Millennium Copyright Act takedown notices to Discord, first in late May and then again next week. The group demanded that Discord disable access to the server, remove or disable the infringing material, and inform the server’s users “of the illegality of their conduct.”
“This server [is] dedicated to infringing our members’ copyrighted sound recordings by offering, selling, linking to, hosting, streaming, and/or distributing files containing our members’ sound recordings without authorization,” the RIAA’s lawyers wrote in their June letter to Discord, which was obtained by Billboard. “We are asking for your immediate assistance in stopping this unauthorized activity.”
The subpoena against Discord was obtained under the DMCA’s Section 512(h), which enables rights holders like the RIAA’s members to unmask the identities of anonymous online infringers in certain circumstances.
Discord can fight back by seeking to “quash” the subpoena; Twitter won such a challenge last year, when a federal judge ruled that the First Amendment rights of a user trumped the need for an unmasking order. It could also refuse to honor the takedown, but that would put the site itself at risk of litigation.
As of Thursday evening (June 22), the main AI Hub server remained up on Discord; it was unclear if individual content or sub-channels had been removed. A spokesperson for the company did not return a request for comment.
In a statement to Billboard, an RIAA spokesperson confirmed that the group had taken the action against AI Hub. “When those who seek to profit from AI train their systems on unauthorized content, it undermines the entire music ecosystem – harming creators, fans, and responsible developers alike. This action seeks to help ensure that lawless systems that exploit the life’s work of artists without consent cannot and do not become the future of AI.”
The RIAA’s actions are just the latest sign that the explosive growth of AI technologies over the past year has sparked serious concerns in the music industry.
One big fear is that copyrighted songs are being used en masse to “train” AI models, all without any compensation going to the songwriters or artists that created them. In April, Universal Music Group demanded that Spotify and other streaming services prevent AI companies from doing so on their platforms, warning that it “will not hesitate to take steps to protect our rights.”
Another fear is the proliferation of so-called deepfake versions of popular music, like the AI-generated fake Drake and The Weeknd track that went viral in April. That song was quickly pulled down, but its uncanny vocals and mass popularity sparked concerns about future celebrity rip offs.
For RIAA, AI Hub likely triggered both of those worries. The server features numerous “voice models” that mimic the voices of specific real singers, including Michael Jackson and Frank Sinatra. And in the wake of the RIAA’s actions, users on the Discord server speculated Thursday that the takedowns were filed because users had disclosed that some of the models had been trained on copyrighted songs.
“We have had certain threats from record labels to takedown models, mainly because some posters decided to share datasets full of copyrighted music publicly,” one AI Hub admin wrote. “If you want to avoid unnecessary takedowns[,] most importantly, do NOT share the full dataset if you have copyrighted material in the dataset. The voice model itself is fine, but don’t share the dataset.”
In 1994, at the dawn of the internet era, Rolling Stone asked Steve Jobs if he still had faith in technology. “It’s not a faith in technology,” he responded. “It’s faith in people.”
Today, at the dawn of the artificial intelligence era, we put our faith in people too.
It’s hard to think of an issue that has exploded onto the public scene with the furor of the debate over AI, which went from obscure technology journals to national morning shows practically overnight. This week, Congress is convening the first two of what will surely be many hearings on the issue, including one with OpenAI CEO Sam Altman and another with musician, voice actor and SAG-AFTRA National Board member Dan Navarro.
As members of the global Human Artistry Campaign, made up of more than 100 organizations that represent a united, worldwide coalition of the creative arts, we welcome this open and active debate. It’s gratifying to see policymakers, industry, and our own creative community asking tough questions up front. It’s a lot easier to chart a course in advance than to play catch up from afterward.
We don’t have long to get this right, either. The internet is already awash in unlicensed and unethical “style” and “soundalike” tools that rip off the writing, voice, likeness and style of professional artists and songwriters without authorization or permission. Powerful new engines like OpenAI’s ChatGPT and Jukebox, Google’s MusicLM and Microsoft’s AI-powered Bing have been trained on vast troves of musical compositions, lyrics, and sound recordings — as well as every other type of data and information available on the internet — without even the most basic transparency or disclosure, let alone consent from the creators whose work is being used. Songwriters, recording artists, and musicians today are literally being forced to compete against AI programs trained on copies of their own compositions and recordings.
RIAA Chairman/CEO Mitch Glazier
Othello Banaci
We strongly support AI that can be used to enhance art and stretch the potential of human creativity even further. Technology has always pushed art forward, and AI will be no different.
At the same time, however, human artistry must and will always remain at the core of genuine creation. The basis of creative expression is the sharing of lived experiences — an artist-to-audience/audience-to-artist connection that forms our culture and identity.
Without a rich supply of human-created works, there would be nothing on which to train AI in the first place. And if we don’t lay down a policy foundation now that respects, values and compensates the unique genius of human creators, we will end up in a cultural cul-de-sac, feeding AI-generated works back into the engines that produced them in a costly and ultimately empty race to the artistic bottom.
That policy foundation must start with the core value of consent. Use of copyrighted works to train or develop AI must be subject to free-market licensing and authorization from all rights holders. Creators and copyright owners must retain exclusive control over the ways their work is used. The moral invasion of AI engines that steal the core of a professional performer’s identity — the product of a lifetime’s hard work and dedication — without permission or pay cannot be tolerated.
David Israelite
Courtesy of NMPA
This will require AI developers to ensure copyrighted training inputs are approved and licensed, including those used by pre-trained AIs they employ. It means they need to keep thorough and transparent records of the creative works and likenesses used to train AI systems and how they were exploited. These obligations are nothing new, though — anyone who uses another creator’s work or a professional’s voice, image or likeness must already ensure they have the necessary rights and maintain the records to prove it.
Congress is right to bring in AI developers like Sam Altman to hear the technology community’s vision for the future of AI and explore the safeguards and guardrails the industry is relying on today. The issues around the rapid deployment of novel AI capabilities are numerous and profound: data privacy, deepfakes, bias and misinformation in training sets, job displacement and national security.
Creators will be watching and listening closely for concrete, meaningful commitments to the core principles of permission and fair market licensing that are necessary to sustain songwriters and recording artists and drive innovation.
We have already seen some of what AI can do. Now it falls to us to insist that it be done in ethical and lawful ways. Nothing short of our culture — and, over time, our very humanity — is at stake.
David Israelite is the President & CEO of the National Music Publishers’ Association. NMPA is the trade association representing American music publishers and their songwriting partners.
Mitch Glazier is chairman/CEO of the RIAA, the trade organization that supports and promotes the creative and financial vitality of the major recorded-music companies.
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Post Malone achieves a high status with the Recording Industry Association of America and is toasting the feat with a new album containing his greatest hits.
On Thursday (April 20th), three songs from the artist – “I Fall Apart,” “Better Now” and “Circles” – all were certified by the Recording Industry Association of America to have crossed the diamond threshold in certified units sold, which is ten million. Universal Music Group announced the achievement on Twitter along with the cover for a new album from Post Malone entitled The Diamond Collection, which will be released from Republic Records on Friday (April 21st).
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The new album will contain nine diamond-certified hits from the rapper and singer, along with a new track, “Chemical”. The song, the lead single from his upcoming fifth studio album, was recently projected to debut on the United Kingdom hit charts just shy of its top ten. For the Utah-based artist, the new song marks a change in his process.
“Trying to shove 20 to 25 songs, it doesn’t work. Talking to the label [it’s like], ‘Oh, if you have less songs, you’re not going to stream as much,’ but the whole thing is that you don’t want to compromise your art and your gut vibe on anything,” he said to Billboard. “I’ve made a lot of compromises, especially musically, but now I don’t feel like I want to anymore. I don’t need a No. 1; that doesn’t matter to me no more, and at a point, it did.”
He previewed the song to his followers on Instagram before its release.
Malone’s feat broke the previous record of six songs having attained a diamond status, which was previously held by Bruno Mars. The artist also has tied for the highest certified single of all time, with his hit “Sunflower” with Swae Lee for the Spider-Man: Into The Spider-Verse soundtrack. That song would go on to become seventeen-times platinum per RIAA records.
The status is a hard one to obtain, having been first created in 1997 with “Something About The Way You Look Tonight / Candle In The Wind 1997″ by Elton John.
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Photo: Jerritt Clark / Getty
Tomorrow comes the most wonderful time of the year: Record Store Day. As fun as some fans find it – and I joke that it’s my favorite holiday – it’s hard to remember how odd an idea it seemed when it started, in 2007. Back then, CD sales were sliding fast, download sales were growing a lot slower, and mass-market streaming was still taking shape. The idea of a day devoted to buying vinyl, much less in physical stores, was anything but obvious.
Now look. Vinyl generated more revenue in the U.S. than CDs by 2019, and more unit sales by 2022, according to the RIAA. Last year, vinyl generated $1.2 billion in the U.S. — more than Latin music, which brought in $1.1 billion, although Latin music brings in far more worldwide. And much of this growth came at a time of serious challenges, from insufficient manufacturing capacity to supply chain problems.
Now what? The future of vinyl was one subject that came up at a Nov. 3 panel that I moderated at RIAA headquarters in Washington, D.C. With me were Vinyl Me Please CEO Cameron Schaefer, Byrdland Records co-owner Alisha Edmonson, Thirty Tigers director of physical sales Mike Couse and consultant Simone Piece.
Among the topics that came up:
How vinyl fulfills a need for “better connection with music”
How the pandemic supercharged growth
Whether recent new buyers will stick around for the future
The most important question, of course, is what this means for artists. It was disheartening to hear that delivering vinyl to stores even close to an album’s release date requires up to ten months of advance planning. Even so, many independent acts make more money on vinyl than they do from streaming.
Another highlight? A performance from Lola Kirke:
No one knows what the future holds for vinyl. Judging by the format’s fast growth, however, it will remain an important part of the recording industry’s revenue mix for at least the next few years, and perhaps long after that.
Watch the entire panel here:
Posty delivers once again, this time setting a swag of RIAA records and announcing a new greatest hits compilation.
With three newly certified records, Post Malone establishes a new mark for the most RIAA Diamond-certified singles from any artist, with eight.
According to a statement issued today (April 20) from Universal Music Group, a member of RIAA, “Circles,” “Better Now,” and “I Fall Apart” cross the diamond threshold, which is awarded to those tracks which have accumulated 10 million certified units.
Malone busts the previous record owned by Bruno Mars, with six. Also, the rapper and singer is tied for the highest platinum-certified single of all-time with “Sunflower,” featuring Swae Lee, which hits 17-times platinum.
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The inaugural Diamond milestone was awarded for Elton John’s “Something About The Way You Look Tonight / Candle In The Wind 1997″ and, to date, remains a relatively rare accomplishment. In February of this year, Halsey’s “Without Me” was recognized as the 100th single to receive Diamond status.
Meanwhile, to celebrate his latest feats, Malone and Republic Records sets The Diamond Collection, a hits compilation carrying all his Diamond-certified singles, plus his latest release, the pop-leaning “Chemical.”
“Chemical,” the first track from Malone’s forthcoming fifth studio album, is set to debut just outside the U.K. top 10, at No. 11, based on midweek data published by the Official Charts Company.
“It’s so hard,” Post previously told Billboard of his musical journey in his February 2022 cover story. “You lose a lot of the artist nowadays because a lot of people have so many genius ideas, but you lose a lot of that through everything that might happen with the business side — and you lose a little bit of yourself. Every time you change your art and your way of thinking for someone else’s, that takes a little piece of yourself off every time. I feel like I’m trying to rebuild.”
Posty’s fourth and most recent studio album Twelve Carat Toothache, arrived in 2022 and bowed at No. 2 on the Billboard 200. His previous collections Hollywood’s Bleeding (from 2019) and Beerbongs & Bentleys (2018) both went to No. 1 on the all-genres chart.
Spanning nine tracks, The Diamond Collection is slated to drop April 21.
See the tracklist below.
The Diamond Collection Tracklisting:
1. White Iverson
2. Congratulations (feat. Quavo)
3. I Fall Apart
4. Rockstar (feat. 21 Savage)
5. Psycho (feat. Ty Dolla $ign)
6. Better Now
7. Sunflower (with Swae Lee)
8. Circles
9. Chemical
Lady Gaga‘s debut single “Just Dance” was certified Diamond by the Recording Industry Association of America (RIAA) on Wednesday (April 12).
The milestone — signifying 10,000,000 units sold — comes just days after the 2008 smash featuring Colby O’Donis celebrated its 15th anniversary. With her third Diamond record — following “Bad Romance” and “Poker Face” — Mother Monster also becomes the very first woman to receive the RIAA’s Digital Diamond Award.
Released as the lead single off Gaga’s debut album The Fame, “Just Dance” rose to No. 1 on the Billboard Hot 100 in the winter of 2009, spending three weeks atop the chart and becoming the first of the pop supernova’s five No. 1 hits, which include “Poker Face,” “Born This Way,” “Shallow” with Bradley Cooper and “Rain on Me” with Ariana Grande.
To mark the anniversary of the song, Gaga has re-released limited-edition merch from every single of her past album eras including 2009’s The Fame Monster, 2011’s Born This Way, 2013’s Artpop, 2016’s Joanne and 2020’s Chromatica, as well as select pieces dedicated to Love for Sale, her 2021 collaborative LP with Tony Bennett, and her contribution to the Top Gun: Maverick soundtrack. All the merch is available for purchase now on the singer’s official website.
Meanwhile, Gaga recently wrapped filming on the upcoming film Joker: Folie à Deux. Directed by Todd Phillips, the crime caper will serve as a sequel to 2019’s Joker, and finds Gaga stepping into the deranged shoes of Harley Quinn opposite Joaquin Phoenix as Gotham City’s most notorious baddie.
Check out the RIAA’s celebration of “Just Dance” being certified Diamond below.
Latin music revenues in the United States hit an all-time high last year, exceeding the $1 billion mark on the wings of 24% growth that outpaced the overall market.
According to the RIAA’s year-end Latin music report for 2022, total revenue jumped from $881 million in 2021 to $1.1 billion in 2022, with Latin music’s overall share of the total music market lifting from 5.9% in 2021 to 6.9%.
“Latin music revenues in 2022 exceeded $1 billion for the first time and grew significantly faster than the broader industry. That sustained expansion speaks to an openness to new artists, music and ways of listening,” says RIAA senior VP, state public policy & industry relations Rafael Fernandez Jr.
Months earlier, the RIAA’s mid year report had already suggested that Latin music revenues would reach a new peak, driven by the success not only of Bad Bunny — who ended the year as the most streamed artist in the U.S. and around the world — but also a cadre of other artists who have had major streaming success, including Rosalía, Karol G and Rauw Alejandro.
Streaming makes up a stunning 97% of Latin music revenue, accounting for more than $1 billion. Within that, paid subscriptions were the biggest growth driver, contributing 71% of streaming revenues and posting revenue growth of 29% to $758 million.
Another major contributor to growth was ad-supported on-demand streams (from services like YouTube, Vevo and the free version of Spotify), underscoring how important video is to the Latin fan. Revenue from this space grew 24% to $230 million, a 21% share of total Latin music revenues, over-indexing compared to the 11% average of the overall market.
Conversely, revenue from digital services like Pandora and SiriusXM decreased 5% to $73 million, making up 7% of streaming revenues. Permanent downloads also fell 15% to $11.7 million. They now make up only 1% of revenue.
And while physical sales remain a tiny percentage of revenue – less than 1% – they are growing. CD revenues were up 60% to $3.1 million and vinyl grew 67% to $9.1 million, signaling a fresh area of growth potential for Latin music.
The U.S. recorded music business posted its seventh consecutive year of growth in 2022 as the industry continues to benefit from streaming services such as Spotify, Apple Music and YouTube. After spending most of the last two decades in a painful freefall — piracy devastated CD sales and the download-driven unbundling of the album didn’t make up for it — the recorded music business has enjoyed a great run. Last year, paid subscription revenues surpassed $10 billion for the first time, according to the RIAA, and overall revenues reached $15.9 billion.
Here’s the bad news: Last year’s growth, in terms of both dollar and percentage increases, was the lowest since 2016, when the recorded music business started to recover from a 15-year downturn. Happy days may be here again, but they’re not getting happier like they were.
Total recorded music revenues grew 6.1%, but that’s about a quarter of 2021’s 23.2% gain. Paid streaming revenues improved 7.2% in 2022, a third of the 22.2% growth in 2021. It was the first time that this segment’s growth rate fell into the single digits since 2010. That year paid streaming revenues rose just 2.9% to $212 million. Over the next decade, as annual paid streaming grew to 57.8% of total recorded music revenue in 2022, the segment’s annual growth often exceeded 50% and fell below 20% only twice.
Ad-supported streaming’s revenue growth rate also fell into the single digits, also for the first time in more than a decade. Slowed by an advertising malaise that has also affected companies ranging from Alphabet to iHeartMedia, streaming services’ advertising royalties to record labels grew 5.6% compared to 44.4% in 2021 and 16.8% in 2020. In dollar terms, last year’s revenue growth was the lowest since 2015.
The slowdown shouldn’t catch anybody by surprise given the industry’s reliance on streaming, subscription services’ unwillingness — until recently — to raise prices and a finite number of potential customers. The problem comes down to basic math: Fees from subscription services accounted for 57.9% of recorded music revenues in 2022. At just 2.4% of total revenues, a high-growth segment like synchronization barely moves the needle despite rising 24.8% in 2022. Vinyl sales were strong once again — up 17.2% — but accounted for just 7.7% of total recorded music revenues.
Up-and-coming revenue streams such as TikTok, Facebook and Instagram are just that — not yet ready to deliver meaningful royalties despite their popularity. Their revenues are included in the ad-supported streaming bucket that increased just 5.5% in 2022. TikTok faces high expectations but large uncertainty, too, as it faces pressure from politicians at the state and federal level that could reduce its importance. In addition, the company has installed parental controls that are likely to reduce engagement and further reduce its potential value to artists and labels.
A positive trend is subscription services’ decisions to raise prices on individual and family plan tiers. In 2022, Apple Music, Amazon Music and Deezer raised prices in the U.S. Spotify has not yet announced a price hike for standard subscription plans but has hinted it will follow suit in 2023. Labels are eagerly awaiting Spotify’s move. “We are the lowest (cost) form of entertainment,” Warner Music Group CEO Robert Kyncl said Thursday. “We have the highest …engagement, highest form of affinity and lowest per-hour price. That doesn’t seem right.”
Globally, the situation looks better. The industry in China, the world’s most populous country, is flourishing thanks to streaming companies such as Tencent Music Entertainment and Cloud Music. In Japan, the world’s second-largest recorded music market, streaming revenues increased 125% in 2022, according to the RIAJ. At Spotify, which operates in 184 markets, revenue increased 21.3% in 2022 to 11.7 billion euros ($12.4 billion), with about equal growth rates from paid and ad-supported streaming. Annual revenues of two smaller streaming companies, Europe-focused Deezer and MENA-focused Anghami, grew 13% and 36%, respectively.
In the U.S., a maturing streaming business alone cannot maintain the breakneck pace of the last seven years. Labels will need more than the status quo to return to double-digit growth.
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The music industry continues to thrive and prosper. Last year music revenue took in nearly $16 billion in revenue.
As per Variety the RIAA recently released 2022 Year End Report. Recorded music revenues in the U.S. in 2022 continued to grow for the seventh consecutive year. Total revenues grew 6% to a record high $15.9 billion at estimated retail value. Streaming continued to be the biggest driver of growth with record levels of engagement in paid subscriptions, continued growth in ad-supported format revenues, and growing contributions from new platforms and services. At wholesale value revenues grew 5% and exceeded $10 billion for the first time ever.
Streaming continued to account for a large majority of recorded music revenues in 2022. Paid subscriptions, ad-supported services, digital and customized radio, social media platforms, digital fitness apps and others grew 7% to a record high $13.3 billion in revenue. They collectively accounted for 84% of total revenues, up slightly from 83% in 2021. Revenues from paid subscription services grew 8% to $10.2 billion in 2022, exceeding $10 billion annually for the first time. They accounted for 77% of streaming revenues, and nearly two-thirds of total revenues. Limited tier subscriptions (services limited by factors such as mobile access, catalog availability, product features, or device restrictions) grew 18% to $1.1 billion. Services like Amazon Prime, Pandora Plus, music licenses for streaming fitness services, and other subscriptions are included in this category.
Revenues from physical music formats continued to growafter their remarkable resurgence in 2021. Total physical revenues of $1.7 billion were up 4% versus the prior year. Revenues from vinyl records grew 17% to $1.2 billion – the sixteenth consecutive year of growth – and accounted for 71% of physical format revenues. For the first time since 1987, vinyl albums outsold CDs in units (41 million vs 33 million). After a 2021 rebound versus the COVID impacted 2020, revenues from CDs fell 18% to $483 million in 2022.
You read the RIAA 2022 Year End Report here.
Photo: Uforia
On Thursday (March 9), the RIAA released its annual year-end report on recorded music revenues in the U.S., with an encouraging top line: In 2022, total revenue was up 6% to $15.9 billion, with paid subscription and wholesale revenues each surpassing $10 billion for the first time. That marks the seventh straight year of growth for an industry that at this point is far removed from the doldrums of the early part of the century.
In fact, the industry could credibly be a little underwhelmed by the rate of growth, as the 6% figure is the lowest percent increase across those seven years — and the only time other than pandemic-affected 2020 (+9.2%) that growth has fallen below double digits during that period. In actual figures, it’s the smallest increase ($900 million) year over year since 2016, when the business grew 11.4% and added $700 million.
There are plenty of other interesting takeaways to discern from digging through the RIAA’s report. Here are four (plus one bonus item!) that stand out.
Paid Subscriptions — Anything to Worry About?
Both the average number of paid subscribers (those subscribing to full-catalog services like Apple Music or Spotify’s paid tier) and the revenue from full-catalog paid subscriptions grew at much slower rates, both in percentage terms and in actual numbers, than in recent years. The former metric showed an increase of 8 million subscribers (9.5%; 84 million in 2021 to 92 million in 2022), while the latter metric reflected an increase of $600 million (7.2%; $8.56 billion to $9.17 billion). As with the overall growth rate for the industry, that’s the first time in several years that those figures grew by less than double-digit percentages. So, is it anything to worry about, when looking at how much growth there is left in the paid streaming business?
Not necessarily. For one thing, between 2018 and 2022, paid subscribers (up 96.2%) and revenue from full-catalog subscriptions (up 93.6%) have grown fairly in line with each other, and the revenue per subscriber has averaged $98.92 over that period of time (pandemic-affected 2020 was an outlier year, at $92.35). In 2022, the average revenue per subscriber was $99.77, which was down from $101.94 in 2021 but not out of line with the overall average.
That number should be expected to grow, given price increases by Apple Music, Amazon Music and Deezer in the past year and the increasing pressure on Spotify to boost its price higher than $9.99/month, where it has stayed since entering the U.S. in 2011. This will be something to keep an eye on as the year progresses, as strategies shift from gaining subscribers to getting more out of those who do subscribe, given that a ceiling on the number of subscribers could be coming into view (for context, the U.S. government counted 124 million households in the latest census).
Another reason for optimism: The above numbers don’t include limited-tier subscription revenue — things like Amazon Prime and fitness apps like Peloton — which crossed the $1 billion mark for the first time in 2022. Since 2020, when the pandemic led to a home fitness app craze and resulted in additional areas of limited music subscription beyond the traditional paid streaming realm, limited-tier subscription revenue has grown 47.7%. As more licensing opportunities arise, that sector should continue to contribute meaningful revenue moving forward.
Ad-Supported Streaming Takes a Hit
Ad-supported on-demand streaming revenue reached $1.8 billion in 2022, accounting for 11% of the overall revenues for the business last year. But growth was just 5.5% over 2021 — a big reality check after the category grew 46.7% in 2021 over pandemic-affected 2020 and 16.4% at the mid-year mark of 2022. Even in 2020, when the world essentially came to a standstill for several months, year-end ad-supported streaming revenues grew 16.8%, up $170 million — higher than the $95 million gain seen in 2022.
The advertising slump last year was certainly a blow to U.S. industries, with layoffs across the music and tech landscapes in particular. Many companies cited “economic headwinds” due to a combination of factors, including the war in Ukraine, rising interest rates, inflation and the threat of recession as companies scaled back spending that had ballooned coming out of the pandemic and readjusted forecasts for an uncertain future. All of that certainly played a part. But since 2018, ad-supported on-demand streaming revenue grew 137%, becoming an increasingly large part of the overall pie. In comparison, 5.5% is likely a disappointing number to many in the industry.
Vinyl, Vinyl, Vinyl
Another year, another big headline involving vinyl’s 16-year winning streak: For the first time since 1987, the number of vinyl LPs sold in the United States (41 million) surpassed the number of CDs sold in the calendar year (33 million). Vinyl sales reached $1.2 billion in 2022, up 17.2%, while CD sales plummeted once again, decreasing 17.6% to $482 million. Despite the eye-popping vinyl revenue numbers, however, actual unit sales only rose 3%, meaning that the price of vinyl is getting more expensive. In 2021, the average vinyl record cost $26.12; in 2022, that number rose to $29.65. There’s plenty to unpack there, including increased production costs and inflation.
Another notable development in the vinyl craze that has sharpened in recent years is the shifting market share among vinyl retailers. As far back as 2015, when the industry started to emerge from its nadir, the market was dominated by indie records stores (45.42%), internet/mail order sellers like Amazon (32.88%) and chain stores like Best Buy (15%), according to Luminate. By 2018, indie stores and Amazon sales had essentially settled into a market share tie — each at 41% — while the Best Buys of the world had shrunk to just north of 10%.
But beginning in 2019, a fourth player began to emerge: Mass merchant stores like Walmart and Target, which dramatically expanded their inventories. As a result, their market share went from less than 1% in 2015 — accounting for some 7,000 sales — to 10.19% in 2019 and 14.75% in 2021, with sales of 6.1 million units. While the market share economics have shifted during that time, sales have continued to increase for each sector across the board. In short, part of what has been driving the boom has been sheer visibility in some of the biggest stores in the country, which has correlated to more sales, and thus more visibility, and around and around we’ve gone. (For those curious, in 2022 indie stores accounted for 48.1% of the market, having reclaimed their dominant position as the country emerged from the pandemic.)
The Synch Explosion
In the past few years, more and more songs have caught huge waves due to synchs in popular TV shows and films. Think Kate Bush’s “Running Up That Hill” following its Stranger Things placement, The Cramps’ “Goo Goo Muck” following its Wednesday placement and Gerry Rafferty’s “Right Down The Line” from Euphoria, to name a few. That seems to have stemmed from the explosion of content, as the streaming wars in TV/film world heated up during that time — with Netflix, Disney+, Hulu, Peacock, Paramount+, Apple TV+ and the rest all throwing money around to reel in subscribers. The RIAA numbers back that up: In 2022, synch revenue grew 24.8%, from $306.5 million to $382.5 million, marking a gigantic jump. In fact, from 2020 to 2022, synch revenue jumped 44.2%, outpacing the industry at large (which was up 30.3% in that span).
Will that upward trend continue? It’s unclear. The TV/film streamers have publicly cut back their content spends in the past six months as the battle for market share and subscribers veered into profligacy and waste, while corporations looked to reel in costs amid the broader economic landscape. But it’s possible those gains are here to stay, even if they regress a bit. One music group executive recently told Billboard that in addition to the big four streamers (Spotify, Apple, Amazon and YouTube), Netflix was quickly becoming a fifth major source of revenue thanks to a combination of direct synch payments and the long tail of streams that result from a high-profile placement. That’s something to keep an eye on moving forward.
Bonus Takeaway — Ringtones!
Finally, a small bonus addition from a personal favorite aspect of the RIAA report. The mid-to-late-2000s were, of course, a time of great uncertainty and anxiety in the recorded music business, as piracy and digital music chipped away at a once-dominant physical sales format. At their height in 2007, ringtones and ringbacks were able to plug the gap to the tune of $1.1 billion, according to the RIAA. (That would be around $1.6 billion today.) So, how much money did ringtones and ringbacks generate in 2022?
$11 million!
Please, RIAA, continue printing this as a line in every report, no matter how small the figure gets. While it’s currently the smallest line item by revenue in the entire report, I cherish it more than all the others.