Streaming Dominates U.S. Music Revenue, Vinyl Revives, and Industry Jobs Reach 2.5 Million

By 2024 the U.S. music market had shifted almost entirely to digital platforms, with streaming and downloads accounting for 84 % of total revenue, according to the Recording Industry Association of America (RIAA). Streaming alone represented 79 % of the $17.7 billion recorded‑music revenue reported for 2024.

On a global scale, the industry grew to $31.7 billion in 2025, the International Federation of the Phonographic Industry (IFPI) reported. Subscription‑streaming services dominate that figure, followed by physical sales and performance‑rights income.

Vinyl has reclaimed its place at the top of the physical‑format chart. The RIAA’s 2025 report shows vinyl revenue at $1.04 billion, marking the nineteenth consecutive year of growth. More than half of all physical‑format revenue in the United States now comes from vinyl.

The streaming boom has also reshaped listening habits. Luminate recorded 5 trillion song streams worldwide in 2025—a 9.6 % increase from 2024 and a new single‑year record.

The industry’s workforce remains large but unevenly distributed. The RIAA estimates that the music sector supports 2.5 million jobs in the United States as of 2024. The average annual salary for a music‑industry worker was $41,935 in 2018, slightly below the $42,333 average in 2012.

Major labels continue to dominate the market. According to Statista data, Universal Music Group holds 29 % of the U.S. market share, Sony Music Entertainment 20 %, and Warner Music Group just under 16 %. In 2017, record labels spent $4.1 billion on signing new artists, developing music, and recording albums.

Artists’ income remains highly uneven. In 2023, Taylor Swift earned $1.1 billion, the first musician to reach billionaire status from music and performances alone. The average share of revenue that goes to artists is about 12 % of total industry revenue.

The structure of streaming royalties has been a point of contention. Artists receive payment only after a stream reaches 30 seconds, a rule that has led some to release albums with many short tracks. A proposed “Living Wage for Musicians Act” was introduced in the U.S. House in March 2024, aiming to increase streaming royalties.

The rise of digital platforms has also altered how new talent is discovered. In 2017, 658 new acts were signed—roughly two per day. Today, talent scouts sift through millions of tracks added to streaming services each day; Luminate’s 2024 year‑end report notes that users add about 99,000 new songs daily.

Physical formats still play a role. In 2000, 943 million CDs were sold; by 2022 that number had fallen to 33.4 million. Yet vinyl sales have surged, with 41 million units sold in 2022, surpassing CD sales in units for the first time since 1987.

The industry also faces challenges beyond revenue. A 2016 survey of UK musicians found that 71 % reported high anxiety and 69 % reported depression, far above the 20 % prevalence in the general public.

Despite the dominance of streaming, radio remains a powerful medium. Nielsen data shows that 92 % of U.S. adults listen to radio at least once a week, and holiday music captured 14.3 % of the adult contemporary audience share in 2018.

In summary, the U.S. music industry is now largely a streaming‑centric business, with vinyl experiencing a sustained revival and a workforce of 2.5 million people. Revenue continues to grow, but artists receive a small fraction of the pie, prompting legislative proposals to raise streaming royalties.