The average US music streamer now spends $434 a year on recorded music
New research reveals that today’s streaming listeners aren’t just paying for subscriptions, they’re also driving spending on merchandise, vinyl, live events, and more.
For years, streaming has been criticised for lowering the value of music. But new research suggests that today’s music streamers may actually be some of the industry’s most valuable customers.
According to a new report from the Digital Media Association (DiMA), conducted by research firm MusicWatch, the average music streamer in the United States now spends approximately $434 per year on recorded music. Among paid on-demand streaming subscribers, that figure climbs to $614 annually.
The findings offer a useful reminder that streaming doesn’t exist in isolation. The listeners discovering music through platforms like Spotify, Apple Music, YouTube Music, and Amazon Music are often the same people buying merchandise, attending concerts, collecting vinyl, and supporting artists in multiple ways.
For independent artists, that’s an important trend to pay attention to.
Streaming fans are spending more across music
As reported by DiMA, the average US streamer’s annual spending has increased significantly in recent years, rising roughly 27% since 2020.
What’s particularly interesting is where that money is going. According to the report, paid streaming subscribers account for:
- 58% of vinyl and CD spending
- 68% of merchandise spending
- 66% of live music spending
- 62% of SiriusXM subscription spending
Rather than replacing other revenue streams, streaming appears to be helping fuel them. This challenges the long-standing idea that streaming listeners are only interested in paying a monthly subscription fee. Instead, the data suggests that highly engaged streaming users are often the biggest supporters of music overall.
For artists, that’s encouraging news. Every stream isn’t just a royalty payment. It can also be the beginning of a much larger fan relationship.
The most valuable fans start with discovery
One of the biggest takeaways from the report is that streaming remains the primary gateway into the wider music ecosystem.
Listeners first discover an artist through playlists, recommendations, social media clips, or algorithmic suggestions. From there, many go on to buy tickets, purchase merchandise, follow artists on social platforms, and become long-term fans.
This reflects a broader shift that has been happening across the music industry for several years. The goal is no longer simply to sell a song. The goal is to build a fan journey. Streaming has become the first step in that process.
For independent artists, that means getting music onto as many platforms as possible remains essential. Every release creates another opportunity for discovery, which can ultimately lead to multiple revenue streams beyond streaming royalties alone.
Lyrics and music videos are more important than ever
The report also highlighted how listeners are engaging with streaming platforms beyond simply pressing play. Among the most-used features, 43% of streamers regularly use song lyrics, while 39% watch music videos through their streaming services. Surprisingly, personalised playlists based on listening history came in third at 28%. The popularity of lyrics and video content reinforces how important multimedia experiences have become.
This aligns with broader trends we’re seeing across the industry. Streaming platforms are increasingly competing beyond music streaming alone. That’s why we’ve seen the likes of Spotify diversify by investing in music videos, and more social-style content integrations in recent times.
For artists, this creates additional opportunities to connect with audiences. Making lyrics available, investing in visual content, and creating assets that work across streaming and social platforms can all help maximise engagement around a release.
What listeners want next
The report also asked users which new features they would most like streaming services to introduce. The results paint an interesting picture of where listener expectations are heading. Improved audio quality topped the list, with 76% of respondents expressing interest. Meanwhile, 72% wanted short-form video clips similar to TikTok, Reels, and Shorts, and an identical percentage wanted early access to concert tickets through their streaming platforms. Perhaps most notably, 70% said they would be interested in subscriber-exclusive music content not available on free services.
Taken together, these findings suggest that streaming’s future may involve much more than simply listening to music. Exclusive content, premium fan experiences, and direct artist engagement are becoming increasingly important parts of the streaming proposition.
We’ve already seen platforms experiment with artist subscriptions, fan clubs, exclusive merchandise, and bonus content. This research suggests demand for those experiences continues to grow.
What this means for independent artists
The headline figure of $434 per year should be viewed as more than just a streaming statistic.
It highlights the growing value of engaged music fans.
For artists, the lesson is clear: focus on discovery through streaming, but think beyond streams alone. Every release should be supported by opportunities for fans to engage further, whether that’s following your social channels, joining a mailing list, watching a music video, buying merchandise, or attending a show. The artists seeing the greatest long-term success are often those building complete fan ecosystems rather than relying on a single source of revenue.
Streaming remains one of the most powerful discovery tools available, and with digital distribution thanks to platforms like RouteNote opening access to listeners around the world, the opportunities to convert listeners into lasting supporters have never been greater.
As this latest research shows, music fans are still spending. The challenge for artists is making sure they’re part of that journey.
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