RIAA recently released their report on recorded music revenues and shipment information for 2014. The report includes data on key music formats like digital downloads, subscriptions and streaming plus CDs, vinyl and more. During Music Biz 2015 in Nashville on May 12, RIAA’s VP Research and Strategic Analysis, Josh Friedlander presented the data highlights and diving deeper into the report.

1. RIAA Revenue &
Shipment Data
MusicBiz 2015
Joshua Friedlander
"

2. PAGE 2!
RIAA Data is Different"
Unit
Volumes
(Digital
&
Physical)
!
$
Values
!
Synchroniza;on
revenues
!
SoundExchange
Distribu;ons
(including
Pandora,
Sirius
XM,
etc)
!
Ad-­‐Supported
Audio
&
Video
Revenues
!
Ringtunes
&
Ringbacks
!
Subscrip;on
Services
!
Annual
historical
data
back
to
1973
!
Individual
Album/Track
unit
sales
and
streams
—

3. PAGE 3!
How Do We Collect This Data?"
• Aggrega;on
• Es;mates
for
Indies
not
distributed
my
majors
• Analysis
(Including
Indies
Distributed
by
Majors)

4. 2009 2010 2011 2012 2013 2014
US
Retail
Recorded
Music
Shipments
2009
-­‐ 2014
Synchronization
Streaming
Ringtones
&
Ringbacks
Digital
Downloads
Physical
$
Billions
$7.8
$7.0$7.0$7.1$7.0 $7.0 $4.8
$4.5 $4.6 $4.7 $4.8 $4.9
2009 2010 2011 2012 2013 2014
$
Billions
US
Wholesale
Recorded
Music
Shipments
2009-­‐2014
PAGE 4!
Industry Flat 5th Year In A Row"
US
Retail
Recorded
Music
US
Wholesale
Recorded
Music
+
2.0%
-­‐
0.5%

5. PAGE 5!
Streaming Already A Major Source of
Revenue"
$1.0
$1.4
$1.9
$2.5
$2.1
$1.9
2012 2013 2014
$
Billions Revenues
From
Streaming
Music
vs
CDs
Source:
RIAA
Streaming CDs

6. PAGE 6!
Streaming Revenues – More Detail"
+29%
$292
$462
$590
$773$248
$400
$639
$799
$114
$171
$220
$295
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
2011 2012 2013 2014
US
Streaming
Revenues
On-­‐Demand
Ad-­‐
Supported
Streaming
Subscription
Services
SoundExchange
Distributions
$
Millions
$654
$1,033
$1,450
Source:
RIAA
$1,864

7. PAGE 7!
Paid Subscriptions Growing"
+26%
3.4
6.2
7.7
0
1
2
3
4
5
6
7
8
9
2008 2009 2010 2011 2012 2013 2014
Millions
of
Subscriptions
Paid
Subscriptions
Source:
RIAA

8. PAGE 8!
Industry Transformation"
Physical
98.4%
Digital
Downloads
1.5%
SoundExchange
Distributions
0.1%
US
Music
Industry
Revenues
2004
Source:
RIAA
Physical
32%
Digital
Downloads
37%
Ringtones
&
Ringbacks
1%
Streaming
27%
Synchronization
3%
US
Music
Industry
Revenues
2014
Source:
RIAA

9. PAGE 9!
Here’s What I’m Plugging!"

10. Thank You!
Questions?"
jfriedlander@riaa.com"
" " @joshpfried"
" " @RIAA"