Australian Record Sales - 2005 Full Year Results

27 March 2006 - Sydney , Australia - The Australian Recording Industry Association (ARIA) today announced the wholesale recorded music results for the calendar year ending December 2005. Whilst a decline in the size of the physical market was observed, there are strong signs that the digital market is expanding rapidly as previously anticipated.

The wholesale value of the digital market in 2005 was almost $8,000,000 (or around 1.5% of the overall value of the wholesale market). Moreover, 34% of that overall value was earned during the last two months of the year following the October launch of Apple iTunes in Australia . These early results point to the likelihood of significant growth in the digital market during 2006. In recognition of this, ARIA will be making an announcement later this week in relation to the launch of the new digital track chart.

Apart from the gains in the digital market, most of the physical formats experienced a decline in both volume and value. Whilst there was a notable decline in the market for physical CD singles, it is worth noting that a large proportion of the digital market to date has been track based and it appears that the growth in the digital market reflects an increase in the acquisition of singles in the digital format.

The market for CD albums experienced a modest decline of just over 4% in volume, but a decline in value of approximately 9.5%. This result underscores the ongoing highly competitive retail environment for entertainment based products, including competition from DVDs and console games.

The rapid penetration of high speed (broadband) internet access into households is also cited as a contributor to the decline in physical sales. While broadband provides the necessary platform for the development and success of legitimate online businesses, it also makes it easier for illegal internet downloading of music to occur. The industry is committed to maintaining the fight against illegal internet traffic of recordings and remains optimistic that consumers will continue to make the transition to legitimate services.

Whilst 2005 demonstrated some positive and negative results, the industry considers it to have been a transitional year and anticipates a return to growth during 2006. Indeed, the value of sales so far this year are better than sales for the same period in 2005.

Some other key outcomes include:

•  Missy Higgins' 'The Sound of White' (Eleven/EMI) was the highest selling album for 2005 (i.e. including international releases). Other high selling Australian releases in 2005 include;

Anthony Callea

Anthony Callea

SONY BMG

See The Sun

Pete Murray

SONY BMG

Awake Is The New Sleep

Ben Lee

Inertia

Tea And Sympathy

Bernard Fanning

Universal


•  Per capita album sales in Australia now stands at an average of 2.8 albums per person over 15 years of age;

•  Local albums performed well over the Christmas period with significant chart success recorded for the following releases:

Reach Out: The Motown Record

Human Nature

SONY BMG

Tea And Sympathy

Bernard Fanning

Universal

Lift

Shannon Noll

SONY BMG

Wolfmother

Wolfmother

Universal

I Remember When I Was Young - Songs From The Great Australian Songbook

John Farnham

SONY BMG

She Will Have Her Way - The Songs of Tim and Neil Finn

Various

EMI

The Secret Life Of..

The Veronicas

Warners

 

More information.. Australian Record Sales – 2005 Full Year Results.pdf

For more information contact:

Christy Hayes
ARIA Communications Manager
(02) 8569 1144 - chayes@aria.com.au

 
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