There was good news for the U.S. recorded music industry this week, as the Recording Industry Association of America (RIAA) announced revenues outpaced inflation in H1 2026. “U.S. recorded music revenue reached $6B in the first half of 2026, up 6.9%,” noted the association. Probably more interesting, though, is that consumers have been seriously splashing cash on retro or legacy physical audio formats. A strong resurgence in CD and vinyl music sales saw both up double figures in the latest figures. “Physical revenues jumped 25.9%, powered by 17.7% vinyl growth and a 58.6% increase in CDs,” reported the RIAA.
With the extremely strong headline growth in ‘retro’ formats, one could be excused for thinking consumers are pulling back from digital music distributors like Spotify, Apple Music, YouTube Music, and so on. However, the RIAA underlines that “every major revenue category grew, reflecting a healthy and increasingly diversified marketplace.” While we focus on streaming, this digital segment generated $4.9B in H1 2026, up 4.7% and remaining the largest source of recorded music industry revenue. Other digital stats worth highlighting are the 6.4% growth in paid subscriptions, reaching $3.4B, and the 3.7% growth in free streaming, reaching $900M.
Returning to physical music media, the RIAA characterizes this resurgence as “continued fan excitement with different ways to experience music across an increasingly varied marketplace.” Indeed, I have seen more and more tempting special edition re-releases and remasters on CD and vinyl, for bands I enjoy listening to.
Overall, the numbers do seem to suggest that the boom in physical music distribution isn’t conclusive evidence that consumers are rejecting how the music streaming industry is changing its offerings (pricing, catalogs, etc). However, there may indeed be some backlash here, as we have seen in the TV/movie streaming business. Some consumers are increasingly frustrated with video streaming offerings and are building up home media catalogs by purchasing DVDs, Blu-rays, etc. We’ve started to see a bit of this in video gaming, too, as the high-profile case regarding Sony PlayStation digital game ownership has stirred some gamers into action.