Skip to main content

Vinyl made more money than every free on-demand streaming service in 2015

vinyl recorder app
AngeloDeVal / Shutterstock.com
Vinyl sales generated more money than all free on-demand streaming services combined in 2015, with $422 million in revenue last year based on 17 million copies sold, according to a new report from the RIAA.

Ad-based streaming services, such as YouTube, VEVO, Spotify’s free tier, and SoundCloud generated a total of just $385 million in 2015, despite logging play counts in the hundreds of billions.

While both platforms were up by 30 percent or more in revenue from 2014 — with free streaming generating 30 percent more and vinyl generating 32 percent more year-over-year — vinyl sales brings in more revenue than free streaming from a much smaller user base.

In fact, while the number of plays from free streaming has been skyrocketing, revenue growth is actually dipping. While revenue was up 32 percent in 2014 (on 64 percent more plays), 2015 saw streaming plays double (up 100 percent) over the previous year, yet the revenue growth actually went down to 30 percent.

In other words, even as it grows by leaps and bounds, ad-based streaming just isn’t profitable on a large scale. Paid streaming averages around 10 times more revenue than free streaming, essentially supporting the platform entirely.

RIAA CEO Cary Sherman had ominous things to say in a statement following the company’s release of the 2015 numbers:

“The consumption of music is skyrocketing, but revenues for creators have not kept pace. In 2015, fans listened to hundreds of billions of audio and video music streams through on-demand ad-supported digital services like YouTube, but revenues from such services have been meager  —  far less than other kinds of music services. And the problem is getting worse.”

She went on to mention the vinyl resurgence, but not to praise it, instead using the LP format as an example of how distorted the digital music industry is when it comes to paying artists.

“Need further proof that some fundamental market distortions are at play? Last year, 17 million vinyl albums, a legacy format enjoying a bit of a resurgence, generated more revenues than billions and billions of on-demand free streams.”

Though the rise of vinyl sales does say good things about consumers being willing to pay for music, it also says terrible things about the state of the music industry, which is increasingly fueled by unprofitable ad-based streaming.

Editors' Recommendations

Parker Hall
Former Digital Trends Contributor
Parker Hall is a writer and musician from Portland, OR. He is a graduate of the Oberlin Conservatory of Music in Oberlin…
Best Cyber Monday Deals 2022: Laptops, TVs, AirPods, and more
Best Cyber Monday Deals 2022

Cyber Week is here! With some truly epic deals out there, this is the best time of year to buy a new tech gadget. If you slept through the Black Friday sales, then the Cyber Monday sales, you better grab what you need during this week of slowly diminishing deals. From tablets to air fryers, laptops to smartwatches, we've rounded up the best Cyber Monday deals across a range of categories, and you'll find them all below.
Cyber Monday sales: Quick links

Amazon: Huge discounts on laptops, Echo devices, and tablets
Best Buy: Your destination for sales on super-sized TVs
Dell: Unbeatable discounts on gaming laptops, monitors, and more
Gamestop: Cheap video games, console accessories and monitors
HP: Gaming PCs, laptops, monitors, and printers from $129
Kohl's: Home decor, clothing and kitchen appliance steals
Lowe’s: Up to 60% off appliances like refrigerators and decor
Staples: Save big on laptops, home office hardware and supplies
Target: Tons of cheap kitchen appliances and stocking-fillers
Walmart: Great for laptops, and is restocking PS5 and Xbox Series X

Read more
What is hi-res audio, and how can you experience it right now?
Dlyan Wireless Headphones

High-resolution audio, hi-res audio, or even HD audio -- whatever you decide to call it (for the record, the industry prefers "hi-res audio"), it's a catch-all term that describes digital audio that goes above and beyond the level of sound quality you can expect from a garden-variety MP3 file and even CDs. It was once strictly the domain of audiophiles, but now that major streaming music services like Apple Music, Amazon Music, Tidal, Deezer, and Qobuz have embraced it, almost everyone can take advantage of what hi-res has to offer.

But what exactly is hi-res audio? What equipment do you need to listen to it? Where can you download or stream it? And does it actually sound better? We've got the answers.
What does the term 'hi-res audio' mean?

Read more
How to download music from Spotify for offline listening
How to download music and podcasts from Spotify: The downloads folder.

If you're a Spotify Premium user paying that premium Spotify fee, chances are you've taken at least some time curating playlists, liking songs, and using the platform's easy-to-use (and recently revamped) user interface to discover new and old music.

But sometimes all that music or your favorite podcasts aren't available if you find yourself without an internet connection to stream them from — like on a long plane ride or weekend camping trip in the sticks. That's where Spotify's offline listening feature comes in handy, allowing you to download playlists, albums, and podcasts through its desktop and mobile apps so you can still rock out while you're off the grid.

Read more