Earth to the US Music Industry: 99.9% of your revenues now come from Digital sources

Let’s just be honest. If there were any industry that prefers to deny reality it is the music industry.

There may be no greater evidence of the claim above than the following statement from Cary Sherman, Chairman and CEO of the RIAA:

“The music business continues to undergo a staggering transformation, one embraced by the music labels we represent. Record companies are now digital music firms, earning more than 2/3rds of their revenues from a variety of digital formats.” (the link in the press release heads to Why Music Matters, for no apparent reason).

Earth the RIAA: The CD is a digital format!

If you disagree, please place your favorite CD on an analog turntable, place the needle on the CD, and let us know what you hear.

Of the revenue sources listed in the RIAA’s Year-End Shipment and Revenue Statistics, only one source of revenue stands out as being truly Analog: the Vinyl Single, worth $5.9 million of revenue in 2014, or 0.084621783655% of revenue.

100% — 0.084621783655% = 99.915378216345%

If we grant some analog reprieve to the LP/EP (worth $314.9 million in revenue), then it would seem that at best, $320.8 million of the $6.9722 billion in 2014 revenue would come from digital sources — or, 4.601130202805%

100% — 4.601130202805% = 95.398869797195%, or 95.4%

But, let’s face it, even the majority of the LP/EP category is now a digital file — music packaged as 1’s and 0’s, on a shiny disc.

And so, 99.9% of US Music Industry revenues now come from Digital sources.

Feel free to disagree.