What is the story about?
What's Happening?
The Recording Industry Association of America (RIAA) has announced a significant change in how it reports U.S. music industry revenues, shifting from retail to wholesale metrics. This change affects the perception of industry growth, as wholesale figures are generally smaller than retail revenues, which include consumer markup prices. For the first half of 2025, the U.S. recorded music business reported $5.6 billion in revenue at wholesale values, marking a 0.9% increase from the previous year. Streaming revenues accounted for 84% of the total, with paid subscriptions contributing $3.2 billion. This shift aligns RIAA's reporting with other global industry metrics, such as those from the IFPI.
Why It's Important?
The transition from retail to wholesale metrics by the RIAA alters longstanding perceptions of the music industry's financial health. Retail figures have historically been used to gauge industry growth and consumer trends, but the new wholesale focus may provide a more accurate reflection of the revenues received by labels. This change could impact how industry stakeholders, including investors and analysts, assess the market's performance and make strategic decisions. The lack of detailed historical data at wholesale values complicates year-over-year comparisons, potentially affecting market analysis and forecasting.
What's Next?
The RIAA plans to update its digital database with wholesale figures, expected to be available with the full-year 2025 report. This update will provide industry stakeholders with new data for analysis. Meanwhile, Billboard has compiled charts to help conceptualize the shift from retail to wholesale metrics, offering some insight into the industry's overall growth trends. Stakeholders may need to adjust their strategies and expectations based on these new metrics.
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