Paid streaming subscriptions grew just 2.7% YoY in the US in H1 2024 – but overall market revenue topped $8.6bn

The US music streaming market is nearing saturation, according to the Recording Industry Association of America (RIAA) midyear report for 2024. The data shows that paid streaming subscriptions grew by only 2.7% YoY, reaching 99 million paid accounts in the first half of the year, up from 96.5 million in H1 2023. This represents a net increase of just 2.5 million accounts, compared to more substantial growth in previous years, marking a continued slowdown in subscription growth.

For context, the US has 131.43 million households, suggesting the market is approaching a saturation point where most potential subscribers have already signed up. The deceleration in growth has been evident since 2020, when 14.4 million new accounts were added, compared to just 2.5 million in H1 2024.

Despite the slowdown in subscription growth, the US music industry saw stronger revenue performance. Paid music subscription revenue grew 5.1% YoY, reaching $5.23 billion in H1 2024. This indicates that average revenue per user (ARPU) has improved. Overall, the US recorded music market generated $8.65 billion in revenue in the first half of 2024, with retail revenues growing by 3.9% YoY. On a wholesale basis, the US music industry earned $5.5 billion, a 3% YoY increase.

While the US remains the largest music market globally, accounting for 38% of the world's wholesale music revenues in 2023, the growth potential for paid music subscriptions lies in international markets.