And now some genuinely great news in the music industry: every aspect of Bandcamp’s business was up in 2016. Digital album sales grew 20%, tracks 23%, and merch 34%. Growth in physical sales was led by vinyl, which was up 48%, and further boosted by CDs (up 14%) and cassettes (up 58%). Every single one of these numbers represents an acceleration over last year’s growth. Hundreds of thousands of artists joined Bandcamp in 2016, more than 2,000 independent labels came on board (like Dischord, Merge, and Dualtone), and the rate of fan signups tripled. Fans have now paid artists nearly $200 million using Bandcamp, and they buy a record every three seconds, 24 hours a day, 365 days a year.
The record business overall did not fare as well. According to Nielsen, it grew 3% in the U.S. in 2016, while sales of digital albums fell 20%, tracks were down 25%, and physical albums dropped 14%. These declines are not at all surprising given the industry-wide push toward subscription music rental offerings, and indeed as the year came to a close, those services reached a combined 100 million paying subscribers.