What's Happening?
The Recording Industry Association of America (RIAA) has changed its revenue reporting metrics from retail to wholesale values. This shift affects how industry growth is perceived, as wholesale values are generally lower than retail prices. The change aligns RIAA's reporting with other industry metrics, such as the IFPI's global music report. For the first half of 2025, the U.S. recorded music business reached $5.6 billion in wholesale revenue, with streaming accounting for 84% of the total.
Why It's Important?
This change in reporting metrics by the RIAA has significant implications for industry analysis and historical data comparisons. By focusing on wholesale values, the RIAA alters the perception of industry growth, potentially affecting stakeholders' understanding of market trends. The lack of detailed historical data at wholesale values may hinder year-over-year comparisons and long-term trend analysis, impacting strategic decisions by industry players.
What's Next?
The RIAA plans to update its digital database with wholesale numbers, which will be available when the full-year figures for 2025 are released. This update may provide more clarity on industry trends and allow for better analysis of wholesale growth. Stakeholders may need to adjust their strategies and expectations based on the new reporting metrics, and there may be calls for more detailed data to facilitate comprehensive industry analysis.
