CDs seemingly are no longer just a relic. They are making a comeback after two decades. The industry has reported a spike in sales after it witnessed its peak in the year 2000. According to data shared by RIAA, the US sales database of recorded music revenues and shipments, the industry made $584.2 million in 2021, when compared to $483.2 million in 2020. The rise has also been witnessed in overall growth in volumes too. In 2020 in the US, retailers sold 31.6 million units. In 2021, this figure rose to $46.6 million. Also Read - Netflix loses over 200,000 subscribers: Blames password sharing, Russia-Ukraine war and more
The reason for the surge in sales of CDs has been attributed to the growing trend of owning physical copies. According to Axios, Vinyl sales have also witnessed steady growth and have reached the mark of 39.7 million units in 2021. This accounted for $1 billion in revenue. Also Read - Netflix is testing Fast Laughs, comedy clips feed section, on its TV app
While sales of physical copies of music are on the rise, streaming still remains the main revenue generator in the music industry in US. The RIAA report claimed that the streaming industry earned $8.6 billion in 2021. According to the report, paid subscriptions have contributed to 57.2 percent of revenue. The second highest revenue was reported by Ad-supported music streaming. Also Read - Oreo Stereo Music Box available in India during Amazon Prime Day sale
With the resurgence of CDs in the market, some retailers also stand to benefit. According to the Axios report, local record stores in US, like Grimey’s on East Trinity Lane have managed to benefit from the new trend. While vinyl is still the go-to collector item, CDs have also “held their own” according to East Trinity Co-owner Doyle Davis.