2017 In Review

NIELSEN MUSIC has released its 2017 U.S. Year-End Report for the 12-month period ending DECEMBER 28, 2017. The report offers in-depth analysis of the consumer trends and behaviors that shaped the year in music, with forward-looking insights into the year ahead.

The NIELSEN MUSIC U.S. Year-End Report confirms that the music industry experienced significant overall growth in 2017, with total volume up 12.5% over 2016, fueled by a 59% increase in On-Demand Audio streams compared to last year. On-Demand Audio streams surpassed 400 Billion streams in 2017 (compared to 252 Billion in 2016), and overall On-Demand streams (including Video) have exceeded 618 Billion. The industry did experience another year of sales decreases in nearly all formats, particularly digital album and track sales. However, exceptional growth in streaming easily off-set the declines, resulting in positive growth for the music business in the UNITED STATES.

“The music industry saw solid growth this past year, largely supported by the increased accessibility of music and a diversity of channels for music discovery,” said SVP/NIELSEN ENTERTAINMENT & GM/NIELSEN MUSIC ERIN CRAWFORD. “Consumers are continuing to engage with music at unprecedented levels and streaming services are proving to be a key catalyst in increased consumer demand. The music industry has never been more dynamic than it is today and we look forward to delivering insights that drive new opportunities in the year ahead.”

ED SHEERAN’s album "Divide" was the leader in total volume (Albums + Track Equivalent Albums + On-Demand Audio Streaming Equivalent Albums) this year, followed by KENDRICK LAMAR’s "DAMN." and TAYLOR SWIFT’s "Reputation." Led by eight of the top ten most-consumed albums of the year, R&B/Hip-Hop surpassed Rock as the dominant genre in the U.S. for the first time ever, based on total Volume (Album Sales + Track Equivalent Albums + On-Demand Audio/Video Streaming Equivalent Albums). KENDRICK LAMAR’s "DAMN." was the top consumed album for the R&B/Hip-Hop genre in 2017, with DRAKE’s "More Life" and BRUNO MARS’ "24K Magic" rounding out the top three. The growth of R&B/Hip-Hop was powered by a 72% increase in On-Demand Audio streaming.

Vinyl LP sales, which reached an all-time NIELSEN MUSIC-era high volume of 14.3 Million units, increased for the 12th consecutive year in 2017. The top-selling vinyl LP of the year was the THE BEATLES’ "Sgt. Pepper’s Lonely Hearts Club Band," powered largely by its deluxe anniversary reissue. It was followed by THE BEATLES’ "Abbey Road" and the cinematic soundtrack, "Guardians of The Galaxy: Awesome Mix Vol. 1," which was also released in cassette format, finishing the year as the third-best selling album on cassette. The soundtrack for the sequel film, "Guardian of The Galaxy Vol. 2: Awesome Mix Vol. 2," topped cassette sales in 2017 and led to the highest measured sales volume for the cassette format since 2012.

The biggest song of the year, in terms of total activity (Song Sales + On-Demand Audio Streaming Equivalent Songs), was “Despacito” by LUIS FONSI & DADDY YANKEE (ft. JUSTIN BIEBER), followed by ED SHEERAN’s “Shape of You” and “Humble.” by KENDRICK LAMAR. “Despacito” also led the Digital Song Sales chart, with “Shape of You” at #2 followed by SAM HUNT’s “Body Like a Back Road” at #3.

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