For the First Time in 17 Years, CD Sales Went Up

While streaming is the music industry’s moneymaker these days, CDs aren’t going away anytime soon. CD income rose by 21% to $584 million in 2021, according to the Recording Industry Association of America’s annual sales report. This was the first annual growth in CD income in the United States since 2004. After COVID-19 put everything on pause in 2020, the RIAA noted that many record outlets reopened and performers sold music at events again.

Vinyl sales are continuing to rise, as they have for the past 15 years. In 2021, revenue increased by a staggering 61 percent to $1 billion. It is the first time since 1986 that vinyl sales have surpassed that mark. Last year, physical music sales in the United States totaled $1.66 billion, including various formats.

According to the RIAA, digital downloads were the only major recorded music medium to witness a revenue loss last year. Sales fell by 12% to $587 million, which is only $3 million higher than CD sales for 2021.

Unsurprisingly, streaming income continues to increase. Last year, overall income increased by 23.8 percent to $12.4 billion when outlets like digital radio were included. $9.5 billion of that came from paid subscribers (an increase of 23 percent from 2020). According to the RIAA, the average number of paid subscribers increased by 11% to 84 million. Figures might fluctuate during the year as people cancel and re-enroll in memberships.

Even though artists have long demanded larger per-play compensation from platforms, streaming remains by far the most important revenue generator for the music business, accounting for 83 percent of total revenue. Despite this, the increase in physical media sales is promising for lovers of the format and should provide artists with some reassurance that they can still earn money by selling CDs. Record stores will be here for a long time to come.