CD Revenue: $171 Million. Up 59%. Nobody Saw It Coming.
In the first half of 2025, US CD revenue was $108.1 million and falling 22.3%. In the first half of 2026, it was $171.1 million and climbing 58.6%. That reversal, documented in the RIAA's 2026 Mid-Year Recorded Music Revenue Report released September 1, is one of the sharpest format turnarounds the US music industry has recorded. On 17.5 million units sold in six months, up 45.7% on the same period last year, CDs are now outpacing vinyl in growth rate for the first time since the streaming era began.
Streaming Still Runs the Industry. Everything Else Is Growing Too.
The $171 million CD number lands inside a market where streaming accounts for $4.9 billion and 82% of all recorded music revenue. Total US revenue reached $5.97 billion in H1 2026, up 6.9% from $5.59 billion a year earlier, outpacing US inflation for the first time since 2023. That growth rate is notable: H1 2025 came in at under 1% year-on-year, so the acceleration is real and broad. Physical formats as a whole jumped 25.9% to $731.5 million. Vinyl was up 17.7% to $543.8 million on 26.5 million units. Sync licensing grew 18.2% to $231.8 million, its best first-half result since 2019. Even permanent downloads are still generating $121 million a year, though falling (down 12.7%). Paid subscription streaming leads everything: $3.11 billion, up 7.8%, on 111.1 million US subscribers, up 5.5%. Spotify raised prices again at the start of 2026 and subscribers did not leave.
Total H1 2026 revenue
$5.97 billion (+6.9% vs H1 2025)
Streaming
$4.9 billion, 82% of market (+4.7%)
Paid subscription streaming
$3.11 billion (+7.8%)
Physical formats total
$731.5 million (+25.9%)
Vinyl revenue
$543.8 million (+17.7%), 26.5M units
CD revenue
$171.1 million (+58.6%), 17.5M units
Sync licensing
$231.8 million (+18.2%)
Paid subscribers (US)
111.1 million (+5.5% YoY)
Gen Z Is Buying CDs They Cannot Play
Luminate's mid-year research found that roughly half of Gen Z and Millennial consumers who purchased a CD in 2026 do not own a CD player. The disc is not a playback device. It is an object: the artwork, the liner notes, a limited pressing with a photocard, something to own that has no equivalent inside an app. K-pop is the clearest catalyst. Collectible releases with multiple cover variants have built a buying culture where the disc is secondary to the package. Luminate's data suggests CD sales would still have grown 6.7% without K-pop, meaning the trend is broader than one fan community. Vinyl's own success created the opening. New LPs sell for $30 to $40. A CD of the same album costs $12 to $15. For a fan who wants something tangible but balks at vinyl prices, CDs are the affordable alternative. The two formats are coexisting: neither is eating the other's market.
"As US music revenues continue to grow across formats, labels are strengthening connections between artists, fans and the platforms delivering creative work.
"Mitch Glazier · RIAA Chairman and CEO · September 1 2026
The Format Nobody Cancelled Is Now the Fastest Growing
Downloads are still fading: $121 million in H1 2026, down 12.7%. Ringtones have declined to $1.6 million. Both are hospice cases. CDs are not. Matt Bass, RIAA VP of Research: "The power of music is reflected in the $6 billion revenue documented in RIAA's Mid-Year Recorded Music Revenue Report. These results point to a healthy, diversified marketplace." Diversified is the operative word. A market where streaming, vinyl, CDs, and sync are all growing simultaneously is structurally different from two years ago, when only streaming was moving up. What happens when K-pop collectors reach saturation, or when vinyl prices fall enough to close the gap, is a question the industry is not yet answering. For now, the numbers say the disc is back.