AceShowbiz - The U.S. recorded music industry achieved a new revenue milestone in 2025, generating a record $11.54 billion, marking a 3.1% increase from the previous year, according to the latest data released by the Recording Industry Association of America (RIAA).

The dominant format continues to be streaming, which brought in $9.75 billion in revenue, up 3% compared to $9.46 billion in 2024. Paid subscriptions contributed $6.38 billion of that total, growing 5.8% from $6.03 billion the year before. These subscriptions accounted for 55.3% of all recorded music revenue in the United States, supported by 106.5 million paid accounts, an increase from 105 million in the prior year.

The RIAA’s report, published on March 16, 2026, utilizes wholesale revenue figures, a metric the organization adopted for its biannual reports starting mid-2024. Previously, the RIAA reported both retail and wholesale revenues but only used retail numbers for detailed segment breakdowns. With this update, the RIAA has reinstated its U.S. Music Revenue Database, which had been removed amid the transition. The database now offers wholesale revenue data dating back to 1973, enabling direct year-over-year comparisons.

Wholesale revenue growth in 2025 slightly exceeded the 1.9% growth rate seen in 2024. This follows 6.7% growth in 2023 and 4.7% in 2022, reflecting a steady but moderated expansion of the U.S. recorded music market.

Despite the rise in paid subscriptions, other digital revenue streams faced declines. Free, ad-supported streaming revenue dipped 0.6% year-over-year to $1.79 billion. Digital downloads also decreased by 5.9%, totaling $221.8 million from sales of albums and singles.

On the physical media front, vinyl sales continued their long-standing growth trend, marking the 19th consecutive year of increases. Vinyl revenue surpassed $1 billion for the first time since 1983, reaching $1.04 billion from 46.8 million units sold. This was up 9.3% from $954.4 million and 43.4 million units in 2024. Conversely, CD sales further declined by 11.6%, generating $312.4 million from 29.5 million units sold. Overall, physical music revenue grew by 5% year-over-year to $1.38 billion, boosted primarily by vinyl’s sustained popularity.

Synchronization (synch) revenue, which includes licensing for film, TV, and commercials, fell slightly by 1.3% to $407.1 million from $412.6 million in 2024.

“Fans are consuming music from the artists they love in more ways than ever, and that passion is reflected in today’s report,” said Matt Bass, RIAA’s vice president of research and gold & platinum operations. He highlighted the strong and stable music economy supported by label investment and innovation in fan engagement, including streaming ease, vinyl resurgence, and responsible AI licensing.

Mitch Glazier, chairman and CEO of the RIAA, noted the profound transformation over the past two decades. From the dominance of streaming to the vinyl revival as both a listening experience and collectible art, the industry continues to evolve. He emphasized the development of free-market licensing and AI partnerships that enhance music discovery and creativity. Glazier also underscored music’s vital cultural role and its significant economic impact, contributing $212 billion to the U.S. GDP and supporting over 2.5 million American jobs.

Key highlights from the RIAA’s 2025 year-end report include:

• U.S. recorded music wholesale revenue hit a record $11.54 billion.
• Overall streaming revenue grew 3.1% year-over-year to $9.47 billion.
• Paid subscription revenue increased 5.8% to $6.38 billion, making up 55.3% of total revenue.
• Vinyl revenue rose for the 19th straight year, reaching $1.04 billion, up 9.3% from 2024.

The report demonstrates the continued strength and diversification of the U.S. recorded music market, blending digital innovation with physical format resilience to meet changing fan preferences and industry dynamics.