The U.S. recorded music market reached a new high in the first half of 2025, generating $5.6 billion in revenues, according to the Recording Industry Association of America (RIAA). Streaming continues to power this growth, now accounting for 84% of the total market.

Paid subscription streaming revenues climbed 5.7% year over year to $3.2 billion. The number of paid subscriptions grew 6.4% to approximately 105 million, hitting a historic milestone. RIAA Chair and CEO Mitch Glazier noted that these figures “underscore music’s enduring value” as consumers continue to embrace subscription access.

Physical formats contributed steady revenues, with vinyl generating $457 million and outselling CDs for the fifth consecutive year.

The RIAA also noted a shift in methodology: revenues are now reported on a wholesale basis, meaning they reflect what labels and rights holders receive from services and retailers, not the full retail price consumers pay. The change aligns U.S. reporting with international standards set by the IFPI and gives a clearer view of what the industry actually earns.

INSIDER TAKE

For subscription executives, the RIAA report is another clear case study in how recurring revenue can reshape an entire industry. Music’s shift to subscriptions is nearly complete, with more than four out of five dollars now coming from streaming access rather than ownership.

The growth in subscriptions—over 105 million accounts in the U.S.—highlights both opportunity and risk. On the one hand, the model has proven resilient despite rising prices and broader consumer fatigue with subscriptions. On the other hand, saturation is approaching. Maintaining growth will require improving retention and ARPU, not just adding more accounts.

The report also reinforces lessons on diversification. Even in a subscription-dominated industry, physical products like vinyl contribute nearly half a billion dollars in revenue. This “portfolio approach” shows that hybrid models can complement recurring revenue streams and appeal to different customer segments.

Finally, the wholesale reporting shift is a useful reminder that how revenue is defined matters. Just as music revenues are now tracked on what rights holders actually receive, subscription businesses in every sector must ensure clarity and consistency in reporting to investors, partners, and regulators.