As well as revenue, subscriber numbers across
the United States grew an impressive 29% as
more people make the switch from free tiers to
premium streaming services, growing from 46.9
million to 60.4 million across the year. At the
same time, physical sales of music fell by their
biggest percentage to date, and account for
just 10% of the overall market, though vinyl has
grown for the 14th consecutive year as people
continue to revive the format, generating $500
million as a result. In fact, vinyl overtook CD
sales for the first time since 1986 in 2019.
But perhaps the most interesting piece of data
is music downloads, which account for just
8% of all music sales. When iTunes launched
in 2003, it offered just 200,000 songs for sale,
but that catalog grew significantly in the
decade that followed. It was Apple’s 99-cent
songs that caused music executives to claim
the company was stripping the value out
of music, with artists upset that users could
purchase individual tracks rather than be forced
to purchase and listen to a whole album. But its
buy-to-own mantra was popular, and following
the launch of the iPod and iPhone, users were
paying billions for their music.
Apple’s foray into streaming wasn’t without
its bumps, but with access to billions of iOS
devices around the world, the Cupertino firm
quickly took a stronghold on the market. That
is something Spotify has been protesting over,
taking Apple to court over antitrust complaints,
with the Swedish streaming giant claiming
that Apple has an unfair advantage in the
market. Because Apple charges a 30% fee on
developers for in-app subscription purchases
made through the App Store, Spotify says it’s