The U.S. has officially crossed a major milestone in music streaming, reaching over 100 million paid subscribers for the first time, according to a recent report by the Record Industry Association of America (RIAA).
This marks a significant increase from the 96.8 million paid subscribers in 2023, reflecting a year-on-year growth of roughly 3%. The RIAA’s figures exclude limited-tier services that have restrictions on device access and catalog availability, while multi-user subscriptions (like family plans) are counted as one.
Spotify continues to dominate the U.S. streaming market, holding a 36% market share, followed by Apple Music at 30.7%. Spotify alone boasts 55 million paid subscribers in the U.S., as reported by Bloomberg in January. Unlike the RIAA’s metrics, Spotify likely separates multi-user subscriptions from individual ones.
Revenue from Streaming Grows, Physical Sales Remain Relevant
Revenue from streaming services accounted for a massive 84% of the total music revenue in 2024, amounting to $14.9 billion. This includes earnings from paid subscriptions, ad-supported services, digital and customized radio, social media platforms, and digital fitness apps. Physical sales of music, while still significant, made up just 11% of the total music revenue.
Paid subscription revenues saw a 5% increase year-on-year, reaching $11.7 billion, which accounted for 79% of the overall streaming revenue. As streaming services like Spotify, Apple Music, and YouTube have raised their subscription prices over recent years, this could also be contributing to the increase in paid subscription revenue.
Author’s Opinion
While crossing the 100 million paid subscriber milestone is undoubtedly an exciting achievement, it’s clear that the streaming model is showing signs of maturity. With subscription price hikes and market saturation, future growth in the U.S. could be harder to come by, and companies will need to diversify revenue streams or innovate to maintain their momentum in the increasingly competitive market.
