The continued resurgence of the local recorded music industry was confirmed today with ARIA (Australian Recording Industry Association) announcing a 10.5% increase in the value of the Australian recorded music industry for 2017.
The increase in value to $391 million was the largest increase the industry has experienced in its annual wholesale figures since 1996. This growth was driven by continued consumer uptake of streaming music services.
2017 was the first year that revenue from music streaming services (at $213 million) accounted for over half (54%) of the overall market. The streaming category now includes revenues from subscription services (such as Apple Music, Deezer, Google Play and Spotify) and other non-subscription on-demand streaming services (such as YouTube and Vevo). This is a remarkable performance given the revenue from this segment of the market was negligible just five years ago.
Physical formats continue to play a vital part of the music business, accounting for a healthy 25% of the overall market. Sales from vinyl albums increased for the seventh consecutive year, increasing by 19% in 2017. The ongoing revival of vinyl demonstrates this format’s enduring power of reinvention and popularity.
Denis Handlin AO, ARIA Chairman and Chairman and CEO of Sony Music Entertainment Australia and New Zealand and President, Asia, was enthusiastic about the positive results released today:
“We are delighted to see the industry in such a positive growth path and that this strong 2017 result follows the increasing revenues over the past two years.
“The industry continues to transform and change at a rapid pace and the results are a credit to the continued high quality work, innovation, development of local artists, as well as to the industry’s tenacious approach in marketing and delivering music to fans across the country.
“Although our industry is now on a pathway to recovery, it is absolutely critical that Australia retains a strong copyright framework to ensure that artists and labels can protect their work and earn their fair share in the growing digital market.”
ARIA CEO, Dan Rosen was also optimistic about the future of the local industry:
“The return to growth of the Australian recording industry is a wonderful story of resilience, hard work and innovation. Music fans today can access their favourite artists across a multitude of formats from vinyl in their local record store to streaming services on their phones and smart speakers.
“Our business will continue to evolve, and we must remain vigilant to ensure that the growth is sustainable in an increasingly global and digital marketplace.”