Music Sales by Format and Year

Sales data for music industry by format and year

By Charlie Hutcheson [source]

About this dataset

The Music Industry Sales by Format and Year dataset provides comprehensive information on the sales data for different music formats over a span of 40 years. The dataset aims to analyze and visualize the trends in music industry sales, specifically focusing on various formats and metrics used to measure these sales.

The dataset includes several key columns to facilitate data analysis, including Format which represents the different formats of music sales such as physical (CDs, vinyl) or digital (downloads, streaming). Additionally, the column Metric indicates the specific measure used to quantify the sales data, such as units sold or revenue generated. The column Year specifies the particular year in which the sales data was recorded.

To provide a more comprehensive understanding of each combination of format, metric, and year, additional columns are included. The Number of Records column denotes the total number of entries or records available for each unique combination. This information helps assess sample size reliability for further analysis. Moreover, there is an Actual Value column that presents precise numerical values representing the actual recorded sales figure corresponding to each format-metric-year combination.

This dataset is obtained from credible sources including RIAA's U.S Sales Database and was originally presented through a visualization by Visual Capitalist. It offers insights into historical trends in music industry sales patterns across different formats over four decades.

In order to enhance this dataset visual representation and further explore its potential insights accurately, it would be necessary to perform an exploratory analysis assessing: seasonal patterns within each format; changes in market share across multiple years; growth rates comparison between physical and digital formats; etc. These analyses can help identify emerging trends in consumer preferences along with underlying factors driving shifts in market dynamics. Additionally,the presentation media (such as charts or graphs) could benefit from improvements such as clearer labeling, more detailed annotations,captions that allow viewers to easily interpret visualized information,and arrangement providing a logical flow conducive to understanding the data

How to use the dataset

Dataset Overview

The dataset consists of the following columns:

• Format: The format of the music sales, such as physical (CDs, vinyl) or digital (downloads, streaming).
• Metric: The metric used to measure the sales, such as units sold or revenue generated.
• Year: The year in which the sales data was recorded.
• Number of Records: The number of records or entries for each combination of format, metric and year.
• Value (Actual): The actual value of the sales for each combination of format, metric and year.

Key Considerations

Before diving into analyzing this dataset, here are some key points to consider:

• Categorical Variables: Both Format and Metric columns contain categorical variables that represent different aspects related to music industry sales.
• Numeric Variables: Year, Number of Records, and Value (Actual) are numeric variables providing chronological information about record counts and actual sale values.

Interpreting Insights

To make meaningful interpretations using this data set:

Analyzing Different Formats:

• You can compare different formats' popularity over time based on units sold/revenue generated.
• Explore how digital formats have influenced physical format sales over time.
• Understand which formats have experienced growth or decline in specific years.

Evaluating Different Metrics:

• Analyze revenue trends compared to unit count trends for different formats each year.
• Identify metrics showing exceptional growth/decline compared across differing years/formats.

Understanding Sales Trends:

• Examine the relationship between the number of records and actual sales value each year.
• Identify periods where significant changes in music industry sales occurred.
• Observe trends and fluctuations based on different formats/metrics.

Visualizing Data

To enhance your analysis, create visualizations using this dataset:

• Time Series Analysis: Create line plots to visualize the trend in music sales for different formats over time.
• Comparative Analysis: Generate bar charts or grouped bar plots...

In 2024, revenue from digital album downloads amounted to 166.7 million U.S. dollars, less than half the figure recorded in 2018. Meanwhile, subscription and streaming revenues have been increasing annually and reached 14.88 billion that same year, making up the vast majority of revenues for the entire music industry. Digital music – additional informationThe increase in digital music revenue, more specifically subscription and streaming services, may be down to the accessibility and availability of digital music. For legal downloads, consumers can pick between services such as Spotify, Apple Music, and Pandora. Of course, there are countless numbers of illegal sites which distribute digital music also. In 2019, approximately 34 percent of global internet users aged 16 to 24 admitted to accessing music through music ripping, the most popular method being copyright infringement.Digital music sales have made a huge impact on the listings of best-selling lists with digital sales either being combined with physical sales or set apart. The list of the top-selling digital songs in the United States in 2020 features artists such as The Weeknd, Tones and I, and Megan Thee Stallion. The title for the top selling digital song goes to ‘Blinding Lights’ by The Weeknd. The song sold over 372 thousand units in the United States from January to July 2020. Nevertheless, the share of the digital music market does not always directly correspond to the value of the digital market. The value of digital music singles downloads in 2024 amounted to 162.4 million U.S. dollars, which marked a drop in value from 678.5 million in 2017. The value of digital album sales also saw a decrease from 668.5 million in 2017 to 166.7 million in 2024.

When thinking about tuning into the newest Taylor Swift song or checking out the long-awaited new album by the Rolling Stones, most people will automatically head to their preferred streaming platform rather than into a CD or vinyl shop. This easy accessibility and flexibility make music streaming so popular, which is reflected in the revenues generated by both formats. In the United Kingdom, the largest music market in Europe, digital music retail sales revenue reached approximately **** billion British pounds in 2024, compared to around *** million pounds generated from physical music sales. Back in 2011, physical formats still dominated the market, but were overtaken by digital streaming in 2015, marking a major shift in consumer behavior. The music market in the UK As in most music markets today, digital music is dominating the industry in the United Kingdom. Not only that, the UK is the biggest digital music market in Europe in terms of revenue. The UK reported a revenue of **** billion U.S. dollars, followed by Germany with **** billion U.S. dollars. Considering the two digital formats, streaming and downloads, people seem to prefer music streaming. In 2023, music streaming generated nearly *** billion U.S. dollars compared to ****** million U.S. dollars made by music downloads. Overall, the digital share of overall music sales in the UK made up ** percent in 2023, showing the dominance of the format compared to older consumption mediums. Who is consuming music in the UK? Looking at the audience for music in the UK, it can be said that digital users are slightly more likely to be male, with **** percent compared to **** percent being women. Younger generations enjoy consuming music via streaming while their older counterparts use music streaming but also invest in physical copies of music. This is also reflected in the digital music streaming penetration, which is higher among younger age groups. The future of digital music is looking bright, with forecasts estimating that the industry will still grow in the coming years.

US Recorded Music Revenue by Format

Recorded music revenue in the US by format and week 10

By Throwback Thursday [source]

About this dataset

This dataset offers a comprehensive analysis of the recorded music revenue in the United States, specifically focusing on the 10th week of the year. The data is meticulously categorized based on different formats, shedding light on the diverse ways in which music is consumed and purchased by individuals. The dataset includes key columns that provide relevant information, such as Format, Year, Units, Revenue, and Revenue (Inflation Adjusted). These columns offer valuable insights into the specific format of music being consumed or purchased, the respective year in which this data was recorded, the number of units of music sold within each format category, and both the total revenue generated from sales and its corresponding inflation-adjustment amount. By analyzing this dataset with its extensive range of information about recorded music revenue in various formats during a specific week within a given year in the United States market context can help derive meaningful patterns and trends for industry professionals to make informed decisions regarding marketing strategies or investments

How to use the dataset

Introduction:

• Familiarize Yourself with Columns:

  • Format: This column categorizes how music is consumed or purchased.
  • Year: This column represents the year when each data point was recorded.
  • Units: The number of units of music sold within a particular format during a given week.
  • Revenue: The total revenue generated from sales of music within a specific format during a given week.
  • Revenue (Inflation Adjusted): The total revenue generated from sales of music adjusted for inflation within a specific format during a given week.

• Understanding Categorical Formats: In this dataset, formats refer to different ways in which music is consumed or purchased. Examples include physical formats like CDs and vinyl records, as well as digital formats such as downloads and streaming services.

• Analyzing Trends over Time: By exploring data across multiple years, you can identify trends and patterns related to how formats have evolved over time. Use statistical techniques or visualization tools like line graphs or bar charts to gain insights into any fluctuations or consistent growth.

• Comparing Units Sold vs Revenue Generated: Analyze both units sold and revenue generated columns simultaneously to understand if there are any significant differences between different formats' popularity versus their financial performance.

• Examining Adjusted Revenue for Inflation Effects: Comparison between Revenue and Revenue (Inflation Adjusted) can provide insights into whether changes in revenue are due solely to changes in purchasing power caused by inflation or influenced by other factors affecting format popularity.

• Identifying Format Preferences: Explore how units and revenue differ across various formats to determine whether consumer preferences are shifting towards digital formats or experiencing a resurgence in physical formats like vinyl.

• Comparing Revenue Performance Between Formats: Use statistical analysis or data visualization techniques to compare revenue performance between different formats. Identify which format generates the highest revenue and whether there have been any changes in dominance over time.

• Supplementary Research Opportunities: Combine this dataset with external sources on music industry trends, technological advancements, or major events like album releases to gain a deeper understanding of the factors influencing recorded music sales

Research Ideas

• Trend analysis: This dataset can be used to analyze the trends in recorded music revenue by format over the years. By examining the revenue and units sold for each format, one can identify which formats are growing in popularity and which ones are declining.
• Comparison of revenue vs inflation-adjusted revenue: The dataset includes both total revenue and inflation-adjusted revenue for each format. This allows for a comparison of the actual revenue generated with the potential impact of inflation on that revenue. It can provide insights into whether the increase or decrease in revenue is solely due to changes in market demand or if it is influenced by changes in purchasing power.
• Format preference analysis: By analyzing the units sold for each format, one can identify which formats are preferred by consumers during a particular week. This information can be useful for music industry professionals and marketers to under...

In 2024, global music revenue generated by digital music and downloads continued its decline compared to recent years, at the level of *** billion U.S. dollars. It was the lowest figure reported since 2005. Music streaming is still in the lead The music industry has undergone fundamental changes due to the shifts in consumer demand and behavior. In 2024, global recorded music revenue hit an all-time high of around **** billion U.S. dollars, and while this figure was partially fueled by the revival of the live music sector, the top driver of growth was streaming. Music streaming accounted for an estimated ** percent of industry revenues in 2024, whereas digital downloads contributed less than ***** percent to the annual total. Audiences have come to prefer access models over ownership in recent years, which is no surprise considering the extensive range of titles available for a set rate on platforms like Spotify. Best-selling titles Most music lovers listen to their favorite tracks and discover new artists via streaming platforms. And yet, some fans also choose to pay for individual music purchases, be it via digital downloads or in physical formats. In 2023, Seventeen's “FML” was the best-selling music album worldwide, with over *** billion units sold. The K-pop band featured two of its albums in the same ranking that year. However, when it comes to vinyl, Taylor Swift led the ranks there. Her albums took up the top three spots on a list oftop-selling vinyl albums that same year.

The global compact disc (CD) market, while experiencing a decline in recent years due to the rise of digital music streaming and downloads, retains a niche but persistent presence. The market's size in 2025 is estimated at $2 billion, reflecting a steady, albeit slow, growth trajectory. This continued existence is fueled by several factors. Firstly, a dedicated segment of consumers continues to value the tangible nature of CDs, appreciating the physical album art and the inherent collectibility. Secondly, the archival nature of CDs proves crucial for preserving large audio libraries, especially for individuals who possess extensive music collections or value the robust data storage capacity of CDs for non-audio applications, like software distribution in certain sectors. The market is segmented by application (commercial, family) and type (CD-ROM, recordable CD, rewritable CD, Video CD, others), with recordable and rewritable CDs holding significant shares due to their data storage functionality beyond music. Geographic distribution shows a relatively even spread across regions, with North America and Asia-Pacific exhibiting the largest market shares due to their substantial population bases and existing infrastructure for CD production and distribution. However, growth is expected to be more pronounced in developing economies as affordability and awareness increase. The major players in this market—Mitsubishi Kagaku Media, Sony, Ritek, and others—continue to adapt by focusing on niche applications and specialized CD production. While the overall market exhibits a relatively low Compound Annual Growth Rate (CAGR), factors such as the resurgence of physical media among younger generations and the ongoing need for reliable data storage in specific industries could lead to a modest, but sustained market. The restraints on growth mainly stem from the overwhelming dominance of digital music distribution platforms and the reduced manufacturing needs driven by declining demand. However, a continued, albeit modest, demand for CDs in specific niche markets guarantees the continued relevance of this product in the foreseeable future, at least maintaining a stable market value.

In 2024, more than **** million music downloads, either as single tracks or single/album bundles, were sold in Germany, according to the Federal Music Industry Association (Bundesverband Musikindustrie). This marked another decrease compared to the previous year.

CD Market Outlook

According to our latest research, the global CD market size stood at USD 1.23 billion in 2024, reflecting the enduring demand for compact discs across various applications despite the rapid digitalization of media consumption. The market is projected to witness a Compound Annual Growth Rate (CAGR) of 2.1% from 2025 to 2033, reaching an estimated USD 1.49 billion by 2033. This growth is primarily driven by a combination of nostalgia-driven consumer trends, the ongoing need for physical data storage, and persistent applications in education and enterprise archiving.

One of the most significant growth factors for the CD market is the resurgence of interest in physical media, particularly within the music industry. Vinyl’s comeback has also rekindled appreciation for CDs, especially among audiophiles and collectors who value the tangible aspects of music ownership and the superior sound quality compared to compressed digital formats. Major music labels and independent artists alike are releasing new albums on CDs, often as part of deluxe packages that include exclusive content, liner notes, and artwork. This trend is further supported by special edition releases and anniversary collections, which drive consumer engagement and boost sales. The emotional connection and collectability associated with CDs continue to sustain a dedicated market segment, even as streaming dominates mainstream consumption.

Beyond the music industry, CDs remain a preferred medium for software and data storage, particularly in regions and industries where internet connectivity is limited or security concerns are paramount. Many enterprises, educational institutions, and government agencies rely on CDs for secure, offline data transfer and archival purposes. The inherent durability and longevity of CDs make them suitable for long-term storage, ensuring data integrity over decades. Furthermore, the low production cost and ease of distribution make CDs an attractive solution for mass software deployment and educational content dissemination, especially in developing economies where digital infrastructure is still evolving.

The educational sector also significantly contributes to the CD market’s resilience. Educational institutions continue to utilize CDs for distributing course materials, language learning programs, and multimedia content. This is particularly prevalent in regions where internet bandwidth is insufficient for large-scale digital downloads or streaming. Additionally, CDs are widely used for standardized test preparation, interactive learning modules, and as supplementary materials for textbooks. The versatility and compatibility of CDs with a wide range of devices, including legacy hardware, further enhance their appeal in educational settings, ensuring their continued relevance despite the proliferation of newer digital formats.

From a regional perspective, Asia Pacific remains the largest and fastest-growing market for CDs, accounting for over 40% of global sales in 2024. This dominance is attributed to the region’s vast population, strong demand for physical media in emerging economies, and the presence of major manufacturing hubs. North America and Europe, while experiencing a gradual decline due to digital transformation, still maintain substantial market shares, supported by niche consumer segments and institutional demand. Latin America and the Middle East & Africa, though smaller in scale, present growth opportunities due to increasing urbanization, expanding educational initiatives, and the gradual adoption of digital technologies. The regional diversity in CD adoption patterns underscores the market’s complexity and the need for tailored strategies to address varying consumer preferences and infrastructural realities.

Product Type Analysis

The CD market is segmented by product type into Audio CDs, Data CDs, Video CDs, Recordable CDs, Rewritable CDs, and Others. Among these, Audio CDs continue to hold a significant share, driven by the music industry’s ongoing embrace of physical formats. Collectors, audiophiles, and fans of high-fidelity sound remain loyal to Audio CDs, which offer uncompressed audio quality and tangible album experiences. The resurgence of retro and vintage trends has also contributed to a renewed interest in Audio CDs, with artists and labels frequently releasing limited edition albums and box sets. Despite the convenience of streaming, the emotional and sensory a

Digital music sales made up **** percent of total music sales in Germany in 2024. This was an increase compared to 2023 at **** percent of all music sales. Figures had increased significantly since 2004, which confirms the overwhelming trend: digital music formats are here to stay, as is paying for music online. Online music shopping Buying music online is convenient and easy. The music industry has been noticeably impacted by digitalization. Consumers can buy and download music in digital formats from various online retailers, saving the music files on the device of their choice, then listening either at home or while on the go, a trend that is sure to continue picking up considering trends towards increased mobility and the widespread use of mobile devices. Online music purchases enable browsing and choosing at the consumer’s convenience, at any time, and technically speaking it is also usually a very quick process. Digital music files, in turn, do not take up the space that cassette tapes, vinyl records and CDs used to occupy, nor do they get damaged in the ways that physical carriers can. However, some consumers may either still hold on to music they own in the aforementioned formats, also for reasons of nostalgia. Buy or stream? Buying music still faces competition from music streaming platforms, as using a streaming service does not necessarily require paying for access. Consumers may therefore listen to music digitally without spending money on it, even if with some limitations such as hearing advertising at intervals or not having as much control in choosing their music to listen to. It is still possible, however, that free listening might lead to the desire to purchase music for permanent ownership.

Annual music album sales in the United States dropped by roughly ***** percent between 2019 and 2021, amounting to just *** million in the most recent year. This number decreased further to just *** million in the U.S. in 2022. In 2013, sales amounted to ***** million units, a number which had already noticeably decreased from the *** million units sold in 2011. Annual music album sales - additional information The past decade has brought along many changes, both technological and societal, which have forever changed the face of the global music industry. Today, music superstars, such as Beyonce, who was the highest paid musician in the United States in 2016, have money, coverage in all possible mediums, and power like never before. However, as of 2015, the worldwide revenue generated by the music business stood at **** billion U.S. dollars, some **** billion less than in 2002. It seems that the internet, the magical tool that is responsible for the creation of so many music celebrities, might also be responsible for the dismal statistics surrounding the sale of music albums in the United States, once the main revenue stream in the business. As the data shows, annual music album sales in the United States have plummeted from *** million units sold in 2007 to under *** million units sold in 2017. At the same time, digital music revenues, especially from album and single downloads, as well as subscription and streaming services, have been steadily growing in the past years. The fall in record sales is attributed to the rise of illegal music downloading, but also to legal services, which provide music products without the additional costs of production and shipping. Despite changes in the way Americans acquire music, U.S. consumers still enjoy and value music industry products. Recent studies show that more consumers are choosing to use a legal alternative to file sharing, mainly digital music streaming services, such as online radio services like Pandora and Spotify. Additionally, musicians reorient themselves from album sales towards live performances and business deals to boost their incomes. As of 2017, the sales revenue from concert tickets in North America was at an all-time high, with revenue hit ***** billion U.S. dollars for the first time.

As of 2023, the revenue of digital streaming in the Dutch music industry amounted roughly ***** million euro. Over the last couple of years, vinyl has started to take over CDs in terms of revenue. This also the case in the Netherlands in 2023, with vinyl accumulating **** million euros, while CDs generated **** million euros.

According to Cognitive Market Research, the global music recording market size was USD 55514.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 8.10% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 22205.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.3% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 16654.26 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 12768.27 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.1% from 2024 to 2031.
Latin America's market will have more than 5% of the global revenue with a market size of USD 2775.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.5% from 2024 to 2031.
Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 1110.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.8% from 2024 to 2031.

Key Drivers for Music Recording Market

Increasing Individual Awareness to Increase the Demand Globally:

It is critical to recognize that the music industry is not a single industry but rather a collection of distinct enterprises with varying foundations and assemblies, all of which are intricately linked. The creation and use of intelligent properties based on music form the foundation of the whole music industry. Further, the speedy remodeling of the music business is an example of how an advancement can upend an entire sector and render the talents of the present-day obsolete.

Hence, the capacity to choose between physical distribution channels was the primary factor in the power and influence of the music industry before the Internet. Therefore, physical music delivery is becoming increasingly irrelevant due to the internet; thus, in order for the major music companies to survive, they have had to reinvent themselves.

Technological Progress to Propel Market Growth:

The music industry has expanded globally in a way that has never been seen before. There has never been a more connected global music community, and both musicians and listeners are seizing the opportunity presented by the current era to enjoy and spread the music they love. Since recording companies typically provide funding to musicians, record labels have historically been the main sources of funding for the music industry.

According to IFPI, record labels invest more than USD 5.8 billion in artists each year through combined Artists & Repertoire (A&R) and global marketing. The spike in investments is expected to continue in the next years, propelling the music recording market forward. The market offers greater development opportunities, and in addition to singers capitalizing on the digital generation opportunity, music fundamentals are working to position themselves to support long-term progress and sustainability.

Market Restraints of the Music Recording Market

Music Piracy to Limit the Sales:

Music piracy, or the unauthorized sharing and dissemination of copyrighted music, has plagued the business for decades. In the pre-streaming era, peer-to-peer file-sharing networks like Napster enabled widespread music swapping, resulting in enormous financial losses for artists and record labels. While streaming has reduced piracy, it has not eradicated it. Illegal streaming websites and torrent downloads continue to exist, providing free access to music at the expense of creators and copyright holders.

Piracy has far-reaching consequences for the music industry. On the one hand, it clearly deprives artists and labels of cash that would otherwise have come from legitimate sales. This can limit investment in new talent, music production, and promotion, reducing the quality and diversity of music accessible. Furthermore, piracy distorts market data, making it harder to determine actual fan involvement and preventing artists from receiving fair compensation based on their popularity.

Nonetheless, there is some positive interaction between music piracy and the market. According to some, listening to pirated music might act as a kind of "discovery" for listeners, exposing them to new musicians that they might not have otherwise come across. In the end, this exposure...

In 2022 in Australia, the total value of CD albums sold reached ***** thousand Australian dollars. This represents a drop from the previous year when it amounted to ***** thousand Australian dollars, and a continued year-on-year downward trend.

CDs in Australia

Back in time, the introduction of compact disks in the early 1980s completely changed the way Australians listened to music. Australia saw a peak in CD sales in the late 1990s, however, the rise of online music downloads and digital streaming services has resulted in a sales drop. In 2022, the wholesale sales volume of CD albums sold in Australia totaled around *** million units, which marked a decrease from the previous year. The sales volume of CD albums sold has been on the decline since 2016. Despite this, CDs continue to be the favored choice for audiophiles and music collectors who like the tactile feel of physical media and its higher sound quality.

Music consumption diversity

Digital technology has changed Australia's music-listening practices, making them more varied and innovative. The rise of streaming services like Spotify and Apple Music gives users rapid access to a huge music library. In 2020, the digital music distribution market in Australia reached around *********** Australian dollars and is projected to increase to around *** billion Australian dollars by 2024. Furthermore, vinyl records are becoming increasingly popular again among collectors and audio enthusiasts who value the nostalgic warmth and analog quality they offer. In 2022, Australia saw a sales increase of approximately *********** vinyl records, marking a continued uptrend over the past five years. Overall, the Australian music scene provides a wide range of opportunities to experience the global language of music, from live concerts and various records to internet streaming.

In 2020, music streaming reached its highest ever revenue in the Netherlands, growing by roughly ** percent when compared to 2019. The use of services like Spotify and YouTube Music made more revenue than physical sales (including both cd’s as well as vinyl) and digital downloads. The source mentions that music streaming had a market share of ** percent in total revenue of the music industry in the Netherlands in 2020.

What are the most popular music streaming services of the Netherlands?

Exact user numbers for music streaming services are difficult to find in the Netherlands, as companies usually do not share this information in such detail. In the first quarter of 2018, though, Spotify was forecast to reach *** million users (of which *** million paid users), whereas Apple Music and Deezer had around *** million and ******* users respectively. The Netherlands is considered a typical “Spotify-country” by industry experts, as can be seen, for example, from the high install base of the app in 2017 and 2018 as well as the increasing reach between 2014 and 2018.

The rise of podcasts

The numbers shown in this ranking only look at music streaming but do not take podcasts into account. This topic is relatively new in the Netherlands and not yet researched in-depth as compared to other countries. The type of smartphone used, however, seems to be an important driver for which podcast platforms Dutch consumers use the most. Apple Podcasts, for example, comes preinstalled on iOS devices, whereas Spotify and dedicated podcast apps like Overcast were mostly used by Android users (as Google’s operating system does not have native podcast support).

In 2024, K-pop boy group SEVENTEEN sold almost ************ albums. In the previous year, they achieved a remarkable milestone, with album sales reaching approximately ************ copies, marking their most successful year to date. This record-breaking achievement solidified their position as one of the most successful and popular K-pop acts in history. They were the best-selling artist in South Korea in 2023 and 2024. Physical sales vs digital streaming In a global music industry where digital music streaming is prevalent, South Korea stands out due to the significant popularity of physical album sales, particularly within the K-pop genre. SEVENTEEN's 2023 album "FML" emerged as the best-selling physical music album in South Korea, reflecting the genre's emphasis on physical sales alongside digital downloads and streaming. The K-pop industry's success in physical album sales is largely attributed to buying incentives, fandom culture, and the unique merchandising concepts offered with each album, distinguishing it from trends in other music genres. However, digital streaming is still a major part of the industry, as evidenced by the high numbers of streams and views on popular songs and music. SEVENTEEN’s physical sales success was mirrored on digital streaming sites as well, with several of their digital singles being among the most-streamed songs that year. K-pop’s dominance and impact SEVENTEEN's exceptional album sales in 2023 and 2024 not only surpassed their own records, but also broke industry-wide benchmarks, including a six-year streak held by none other than BTS. This accomplishment underscores the rapid growth and dominance of album sales in South Korea, which has seen an over ******* increase in the past decade. The majority of these sales come from the K-pop industry, with other genres seeing far fewer physical sales, both from domestic and international fans.

In 2024, the best-selling physical music album in South Korea was the EP "SPILL THE FEELS" by K-pop boy group SEVENTEEN, having sold around 3.2 million copies. With many parts of the global music industry moving away from physical sales to digital downloads and streaming, K-pop is a prominent exception. Through a combination of buying incentives, fandom culture, and the increasing popularity of K-pop, the genre has retained its larger focus on physical sales compared to many other genres. Music consumption in South Korea The most common purpose for purchasing physical albums is for collection purposes, and to directly support an artist, rather than utilizing the physical CD to listen to the music. The vast majority of South Koreans listened to music on their smartphones according to a 2024 survey, with CD players only being used by a small share of the population. Music streaming and downloading services are popular and enjoy frequent use. Incentives to buy physical albums One famous example of incentivizing the buying of physical albums that commonly occurs in the U.S. music industry is the bundling of merchandising or concert tickets with physical albums. This is not a common practice in the K-pop industry. Instead, each album offers unique merchandising and photobook concepts. Oftentimes, multiple versions of the same album will be released alongside several randomized collectible photo cards. Additionally, gaining entrance to fan signs is usually based on a lottery system which is entered by purchasing physical albums, with one album equaling one ticket. This phenomenon is mainly confined to the K-pop industry specifically, rather than being a feature of the larger South Korean music industry. As such, successful releases tend to differ between physical and digital rankings, with physical sales reflecting fandom buying power, and digital sales reflecting the taste of the general public. Physical rankings are generally dominated by K-pop artists, while digital rankings tend to be more diverse, with favored genres being ballads, OSTs, and trot music.

The global music industry continues to evolve, with streaming services dominating revenue sources in 2024. Subscription audio streams accounted then for more than half of the industry's revenue at **** percent, while ad-supported streams contributed an additional **** percent. This shift towards digital consumption has reshaped the landscape, pushing traditional formats like physical sales and downloads to smaller market shares. Streaming's dominance grows As streaming platforms solidify their position, they now represent ** percent of the total global recorded music revenue. This trend reflects changing consumer preferences, with audiences favoring access models over ownership. The extensive range of titles available on platforms like Spotify for a set rate has contributed to this shift. Despite the overall growth, digital downloads revenue have seen a decline, contributing less than **** percent to the annual total in 2024. Regional disparities in digital music revenue While streaming leads globally, the digital music market shows significant regional differences. The United States stands at the forefront with **** billion U.S. dollars in revenue from the digital music segment, followed by China at *** billion. France trails behind with *** billion dollars, highlighting the vast gap between markets. These disparities underscore the varying rates of digital music adoption and market maturity across different countries.