The music industry continues to grow, but it does so following increasingly particular dynamics. This is what emerges from the “Mid-Year Report 2026” published by Luminate, the traditional mid-year report that photographs the performance of the recording market. Among the most significant data stand out the increase in streaming, the return of the compact disc, the growing importance of the catalog and the decisive role of K-pop in relaunching physical sales.
Streaming always growing
In the first six months of 2026, on-demand audio streaming continues to generate record numbers. Globally, reproductions have approached 2,800 billion, while overall streaming consumption increased by 9.8% compared to the same period in 2025, confirming that digital remains the main driver of the music industry.
Another now consolidated trend concerns the growing weight of the catalogue. In fact, songs published for over 60 months continue to represent an increasingly significant share of listeners. In rock the phenomenon is particularly evident: around 75% of streaming comes from songs that belong to the historical catalogue, confirming how the musical heritage of the past has become one of the most profitable assets for the industry.
The revenge of the CD
Among the surprises in the report is the return of the compact disc. In the United States, CD sales grew by 16% compared to the first half of 2025, a progression significantly higher than that of vinyl, which was stuck at +2.4%. In the first six months of the year, 16.3 million CDs were sold, compared to 21.8 million vinyl records. The latter remains the most purchased physical format in absolute terms, but the growth rate of the CD demonstrates that the optical medium is experiencing a true renaissance. Music cassettes also remain substantially stable, with around 205 thousand copies sold.
K-pop drives physical sales
According to Luminate, the resurgence of the CD is due to several factors. On the one hand the increasingly high prices of vinyl have an impact, on the other the commercial model developed by K-pop. In fact, Korean labels continue to publish albums in numerous different editions, enriched by photobookpostcards, posters and other exclusive gadgets that encourage fans to purchase multiple copies of the same title.
The most striking case is that of BTS: the new album “ARIRANG” exceeded half a million physical copies sold in the United States in its first week of release alone. However, Luminate underlines that the phenomenon does not depend exclusively on Korean pop: even if K-pop is completely excluded from the analysis, CD sales are still growing compared to 2025.
At the same time, however, the distribution of the market is also changing: independent record shops are losing share, going from 36.6% of the market recorded a year ago to 32.1%.
Collecting before listening
One of the most curious aspects that emerged from the report concerns the habits of Generation Z and many Millennials. In fact, approximately half of CD buyers do not own a player to play them. The compact disc thus takes on a value increasingly similar to that of merchandising official: it becomes a collector's item, a testimony to the relationship with the artist, while actual listening continues to take place almost exclusively through streaming platforms.
The genres: top and flop
In terms of musical genres, hip-hop and R&B maintain leadership especially in the US market, but record a slight slowdown: consumption drops by 1.6% compared to last year. Above all, the decline in R&B is weighing heavily, which after having occupied around 40% of the “Billboard Hot 100” in 2023 now represents just over 30% of the ranking.
Dance music and EDM, on the other hand, are experiencing strong expansion, growing by 18.9% on an annual basis in the United States. World music also performed well, recording an increase of 11.9%.
The market boom does not coincide with that of musicians
The positive results of the sector finally reopen the debate on the distribution of revenues. While big stars continue to generate billions in profits, the economic situation of most musicians remains much more complex. The Musicians' Union recalls data from the latest UK Musicians' Census, according to which the average annual income from musical activity is around £20,700, while 43% of professionals earn less than £14,000 a year. A distance that highlights how the growth of the music industry and the return of physical formats continue to favor large labels and the most successful artists above all, while still leaving the majority of independent musicians on the margins.
Daniel D`Amico for SANREMO.FM
