On March 22 the RIAA released its 2017 year-end music industry revenue report, including the good news that digital premium subscriptions surpassed $4 billion for the first time. In a "Music On The Move" essay on Medium, RIAA Chairman/CEO Cary Sherman celebrated this and other news of growth while warning that continued change is needed to sustain this and return the recording industry to its revenue levels before internet piracy.
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Sherman also hailed breakthrough songs and artists who achieved platinum levels of sales success as a sign growth helps emerging artists, most notably Khalid for both his album American Teen LP and his song "Location," which were nominated for the 60th GRAMMY Awards. Other breakthrough platinum-level songs and artists include Cardi B's "Bodak Yellow" and Julia Michaels' "Issues."
Overall, the U.S. music industry revenues grew 16.5 percent at retail to $8.7 billion, the first time this century the industry has experienced two consecutive strong years of growth. Paid subscriptions ended 2017 with more than 35 million customers, up from 22 million the year before. Streaming revenues overall now account for 65 percent of total industry revenue.
As much as this is good news, it is also evidence of a changing landscape in which physical sales and paid downloads are in decline.
Calling attention to "reform legislation advancing," Sherman also endorsed the CLASSICS Act and called for copyright modernization. The music industry was cut in half by internet piracy in the early 2000s and now years of strong growth have returned it to 60 percent of its previous size. A modernized legislative approach should help digital's ability to give music creators their fair share.
With the good news coming out of 2017, time will tell if 2018 can make it three strong years in a row for the music industry.
