US recorded music hits $11.54bn as subscription growth rebounds
The US’s recorded music market grew by 3.1% in 2025, hitting wholesale revenues of $11.54 billion.
According to the RIAA’s latest year-end report, wholesale recorded music revenue reached $11.5 billion, marking a 3.1% year-on-year increase. As Music Business Worldwide notes, this growth slightly outpaced inflation, signalling a stable period for the market after slower gains in 2024.
While the increase is modest compared to earlier years, it represents an improvement on 2024’s performance and shows that the industry is still expanding, even as it matures.
Streaming remains the dominant force in the US music market. Total streaming revenue grew to $9.47 billion, also rising 3.1% year-on-year, and accounting for 82% of all recorded music revenue. This marks the fifth consecutive year that streaming has held such a large share of the market.
Within streaming, paid subscriptions continue to lead growth. Premium subscription revenue rose 6.8% to $5.88 billion, supported by an increase in subscriber numbers and recent price rises across major platforms. One of the most significant figures in the report is the total number of paid subscriptions. The US reached 106.5 million premium accounts in 2025, adding 6.5 million new subscriptions over the year.
This is an important shift. Subscriber growth had been slowing for several years, dropping from over 15 million new accounts in 2020 to just 3.2 million in 2024. The jump in 2025 marks the strongest growth since 2022, suggesting renewed momentum in the streaming market.
At the same time, not all areas of streaming are performing equally well. Ad-supported streaming revenue fell slightly by 0.6% to $1.79 billion, while non-premium subscription revenue dropped 4.5% to $495.2 million. Other streaming revenues, including digital radio services, also declined by 3.8%. These figures highlight a clear trend: listeners are increasingly choosing paid subscriptions over free or limited-access options in the US.
Outside of streaming, physical music saw a return to growth. Total physical revenue rose 5% to $1.38 billion, reversing earlier declines seen in 2025. Vinyl continues to drive this resurgence, as is the story across some other markets around the world. Revenue from vinyl records increased 9.3% to $1.04 billion, with 46.8 million units sold. The RIAA reports that this is the 19th consecutive year of growth for vinyl, with the US now accounting for nearly half of global vinyl revenue.
CDs, however, continue to decline. Sales fell 11.6% in units and 7.8% in revenue, reinforcing the ongoing shift away from the format.
Digital downloads are becoming less significant but are now declining more slowly. Revenue dipped just 0.8% to $272.6 million, showing a stabilisation compared to sharper drops in previous years. Meanwhile, synchronisation revenue, which includes music used in film, TV and advertising, fell slightly by 1.3%, although a stronger second half helped limit the overall decrease.
The report also highlighted the increasing role of AI within the music industry. The RIAA emphasised the need for responsible development and licensing, stating the industry is “advancing free-market licensing, building responsible AI partnerships that enhance discovery, deepen fan engagement and unlock new creative possibilities.”
Industry leaders also reflected on how much the music business has changed over the past two decades. RIAA Chairman and CEO Mitch Glazier said, “The last 20 years have been marked by unprecedented transformation for recorded music – from the steady rise to dominance of anytime, anywhere streaming options as listeners enjoy tunes from their favorite artists to a resurgence of vinyl as both a listening experience and collectable art.”
He went on to add, “Music remains a cornerstone of culture and a growing economic powerhouse for the US, contributing $212 billion to our GDP and supporting more than 2.5 million American jobs.”
Overall, the 2025 data shows a music industry that is stable, streaming-led, and continuing to evolve. Subscription growth has picked up again, vinyl remains strong, and new technologies like AI are beginning to shape the future.