The U.S. music industry shrank 0.5 percent in 2014 as growth in streaming services like Spotify failed to counter declining consumer spending on albums and songs.
Revenue from streaming subscriptions, Web radio and online advertising grew 29 percent to $1.88 billion last year, according to a report from the Recording Industry Association of America.
The report demonstrates why record label executives have said streaming is the future of their business, even if overall music consumption shows few signs of growth. Sales of CDs and vinyl declined 7.1 percent to $2.27 billion. Online purchases, once a source of strong growth, fell similarly to $2.58 billion, the second straight annual drop.
| Bloomberg News