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Industry revenues from digital formats surpassed $4 billion for the first time, up 14% over 2011, representing 59% of the total U.S. market dollar value, up from 51% last year, the first time it crossed the 50% threshold.
RECORD INDUSTRY REVENUES REMAIN STATIC
$7 Billion, with Digital Making up Almost 60% of Total Market
The more things change in the music industry, the more they stay the same.

Despite the proliferation of digitally distributed formats, which now represent almost 60% of the total market, revenues from sales was essentially flat at $7 billion, down .9% from last year’s $7.1 billion, and a far cry from the highs of 1999’s $15 billion after a slight increase from 2010 to 2011.

Industry revenues from digital formats surpassed $4 billion for the first time, up 14% over 2011, representing 59% of the total U.S. market dollar value, up from 51% last year, the first time it crossed the 50% threshold.

Streaming and “access models” like subscription services and satellite radio now represent 15% of the market, up from 9% last year, totaling over $1 billion in revenue. SoundExchange digital performance royalties increased 58% to $462 million.

Revenues from subscription and streaming services were $570.8 million, up 58.9% from $359.2 million the previous year. The number of paid digital subscribers to on-deman d services reached a new high of 3.4 million.

Digital downloads were up 8.6% from $2.6 billion to $2.9 billion. Digital albums were up 12.5%, from $1.1 billion to $1.2 billion, selling 116.7 million, the second consecutive year topping the 100 million mark.

The physical market continued to deteriorate, down 16.5% from $3.4 billion to $2.8 billion.  Physical shipments were down 11.7%, with vinyl continuing to grow its niche market, up 36% in value to $163 million, even if it represents just 2% of the overall market.

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