U.S. recorded‑music revenue rose 6.9% year‑over‑year to $6.0 billion in the first half of 2026, according to the Recording Industry Association of America (RIAA). The growth was driven largely by a resurgence in physical formats, especially compact discs (CDs), which saw a 58.6% increase in sales.
Physical formats regain ground
Physical music revenue jumped 25.9% to $731.5 million, with CD sales accounting for the bulk of the rise. Vinyl also performed well, climbing 17.7% and adding to the overall strength of the physical market. Industry analysts say the renewed interest reflects a broader consumer appetite for tangible media, a trend that began with the vinyl revival and now includes CDs.
Streaming remains dominant but growth slows
Streaming continued to be the largest revenue source, generating $4.9 billion, a 4.7% increase from the same period last year. While the growth rate for streaming was modest compared to the surge in physical sales, paid‑subscription revenue still rose 6.4% to $3.4 billion, underscoring the enduring value of subscription‑based services.
Industry outlook
RIAA Vice President of Research Matt Bass described the results as evidence of a “healthy, diversified marketplace.” He noted that the mix of streaming, CD, and vinyl sales provides artists with multiple avenues to reach listeners and encourages continued investment in new music projects.
The data suggest that physical formats are no longer a niche hobby but a viable component of the overall music economy. Record labels are responding by issuing more CD releases, often bundling them with exclusive content or limited‑edition packaging to attract collectors and longtime fans.
What this means for consumers and creators
For music lovers, the CD comeback offers a tangible listening experience that many find more personal than digital streams. For artists, the resurgence opens additional revenue streams and reinforces the importance of maintaining a physical presence in stores and online marketplaces.
While streaming will likely remain the backbone of the industry, the RIAA’s latest figures show that a balanced approach—supporting both digital and physical formats—can drive robust growth and sustain the creative ecosystem.
Looking ahead
The RIAA will release its full 2026 mid‑year report later this year, providing deeper insight into how consumer preferences continue to evolve. Industry watchers will be watching whether the CD trend sustains momentum or plateaus as newer formats, such as high‑resolution audio and immersive experiences, gain traction.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
