CDs make a comeback, boosting US recorded music revenue

• CD revenue surged 58.6% while vinyl revenue rose 17.7%, contributing to a 25.9% increase in total physical music revenue to $731.5 million
• Streaming remains the dominant revenue source at $4.9 billion, growing 4.7%, with paid subscriptions rising 6.4% to $3.4 billion
• The RIAA characterized the results as evidence of a 'healthy, diversified marketplace' supporting artist investment and new audience experiences

Summary: CD Revival Drives US Recorded Music Revenue Growth

The U.S. recorded music industry experienced significant growth in the first half of 2026, with total revenue rising 6.9% year-over-year to $6.0 billion, according to the Recording Industry Association of America (RIAA). This increase was notably powered by an unexpected resurgence in compact disc sales.

Key Financial Data:

• Total recorded music revenue: $6.0 billion (up 6.9%)
• Physical music revenue: $731.5 million (up 25.9%)
• CD revenue surged 58.6%
• Vinyl revenue increased 17.7%
• Streaming revenue: $4.9 billion (up 4.7%)
• Paid subscription revenue: $3.4 billion (up 6.4%)

Market Implications:

The data reveals a diversification trend in music consumption, with physical formats experiencing a remarkable comeback alongside continued streaming dominance. While streaming remains the largest revenue source at $4.9 billion, its growth rate (4.7%) lagged behind physical formats (25.9%), suggesting consumer appetite for tangible music products is accelerating.

The CD revival follows the ongoing vinyl resurgence, indicating growing consumer interest in retro music formats. This trend has prompted more artists to release albums on physical media, creating new revenue opportunities beyond digital channels.

RIAA VP of Research Matt Bass characterized the results as evidence of a "healthy, diversified marketplace" that supports continued investment in artists and provides audiences with multiple ways to experience music.

Sector Outlook:

The physical format renaissance, particularly for CDs, represents a significant shift in industry dynamics and could influence how record labels and artists approach album releases and distribution strategies going forward.