CD sales collapse in the US as streaming passes 105 million subscribers
The CD’s decline is accelerating, with sales crashing in early 2025. Meanwhile, streaming subscriptions keep climbing.
According to new figures from the Recording Industry Association of America (RIAA), CD sales collapsed during the first half of the year while paid music streaming subscriptions surged to more than 105 million users nationwide.
Overall, the recorded music market in the U.S. grew by less than one percent in the first six months of 2025 compared to the same period in 2024. That modest increase reflects a split reality. On one hand, subscription streaming revenue climbed steadily, up more than five percent year-on-year. On the other hand, CDs, once the cornerstone of the music business, saw revenues plunge by more than 20 percent.
Vinyl, which in recent years had been the darling of the physical revival, also showed signs of slowing. Sales dipped by about one percent in the first half of the year. Even so, vinyl remains stronger than CDs in revenue, with many fans continuing to buy records as collector’s items or to support their favorite artists directly. CDs, by contrast, appear increasingly sidelined in a market where most consumers expect instant access via a monthly subscription.
Several factors are driving this change. The sheer convenience of streaming makes it difficult for physical media to compete: listeners can carry tens of millions of songs in their pocket, discover new artists through algorithmic recommendations, and download music for offline listening. Improvements in streaming quality, such as high-resolution and lossless audio options now being offered by the major platforms, have also lessened the argument that physical formats sound better. For many younger listeners, owning a CD simply feels unnecessary.
For the industry, the decline in physical formats raises some questions. Labels may find it harder to justify producing CDs at scale, particularly as pressing plants and distribution channels shrink. Vinyl is likely to retain its niche role, but CDs are becoming harder to market except to the most dedicated collectors. Meanwhile, streaming, while clearly dominant, is not delivering explosive growth. Its 5–6 percent revenue bump was enough to keep the overall market in positive territory, but it’s far from the double-digit gains seen earlier in the streaming boom.
The U.S. music market is still growing, but more slowly, with nearly all momentum concentrated in subscriptions. As the number of paying users surpasses 105 million, the focus for platforms and labels will be not just signing up new customers, but also finding new ways to monetize music, through exclusive content, bundled services, live experiences, and deeper fan engagement.
CDs, meanwhile, are fading further into the background. Once the dominant format that fueled record-breaking industry profits in the 1990s and early 2000s, the humble disc is now a shrinking part of the landscape.