Vinyl and CDs Are Outpacing Digital Downloads, and It’s a Trend Everyone’s Loving

The music industry has undergone a major shift, and it looks like digital downloads are officially on their way out. In 2024, digital downloads accounted for a mere 2% of U.S. recorded music revenue—a dramatic fall from 43% just a decade ago. Meanwhile, vinyl records are having a massive resurgence, and even CDs are making a small but steady comeback. But digital downloads? They’re quietly disappearing—and no one seems to mind.

Remember when downloading music was the go-to way to build your collection? Those days are over. In 2024, digital downloads generated just $336 million—less than a fraction of the more than $2 billion generated by physical formats. And the decline is accelerating. Last year alone, album downloads dropped by 18.6%, and individual track downloads fell by nearly 15%.

Despite these numbers, digital downloads used to be the bridge between the ease of streaming and the nostalgia of owning physical music. But as the music industry evolves, that middle ground is fading fast. Downloads can’t compete with the instantaneous nature of streaming or the tactile satisfaction of vinyl and CDs.

Two major forces are pushing digital downloads out of the picture: convenience and the desire for ownership.

With a staggering 84% of music revenue in 2024, streaming platforms have become the dominant force in the industry. Paid subscriptions hit a record-breaking 100 million, contributing nearly $12 billion in revenue. The growth of streaming is undeniable, as more people opt for seamless, on-demand access to music without the hassle of owning files or worrying about storage.

While streaming continues to rise, physical formats like vinyl and CDs are experiencing a revival. Vinyl, in particular, is on fire—sales reached $1.4 billion in 2024, the highest in 40 years, marking the 18th consecutive year of growth. Not only that, but vinyl outsold CDs in units sold once again. However, CDs aren’t out of the picture just yet; they also saw a slight increase in revenue, with $541 million in 2024.

Even niche formats like cassette tapes and SACDs are gaining traction, albeit on a smaller scale.

So, what’s driving this shift? At the heart of it, music lovers want two things: access and ownership.

• Access: Streaming delivers instant access to millions of songs, all available at the touch of a button. It’s fast, it’s convenient, and it’s the preferred choice for many listeners.
• Ownership: On the other hand, physical formats like vinyl and CDs satisfy the need for something tangible—something you can hold, collect, and cherish. This desire to build a personal music library is what’s keeping vinyl and CDs alive.

The problem for digital downloads is that they don’t fulfill either of these needs as effectively. Streaming is all about access, and physical formats give us the satisfaction of ownership. Digital downloads sit awkwardly between the two, and more and more music fans are leaving them behind.

With only 2% of total revenue, digital downloads are quickly becoming the forgotten format. They no longer occupy the sweet spot between physical media and streaming that they once did. Instead, people are opting for the best of both worlds: the convenience of streaming and the physicality of records and CDs.

It’s not just about formats—it’s about what music means to us. Whether it’s the freedom to access endless songs or the joy of owning a physical piece of music history, fans have made it clear that they want music that’s either always there or always theirs.

And so, vinyl and CDs are making their mark again, while digital downloads quietly fade into the background.