The Australian Recording Industry Association (ARIA) today announced a 5% increase in the value of the Australian recorded music industry in 2015. The increase in value to $333.8 million was the first upwards trend the industry has experienced in its annual wholesale figures since 2012.
The growth was driven by the continued uptake by Australian consumers of emerging digital business models – in particular musical streaming services, from which revenue doubled over the course of the year.
The streaming category includes revenues from subscription services (such as Apple Music, Deezer, Google Play, Guvera and Spotify) and other non-subscription on-demand streaming services (such as YouTube and Vevo).
In 2015, digital accounted for 62% of the overall market by value, continuing its rise from a 59% share in 2014. Despite digital download revenues (including digital tracks and albums) declining 12.96%, the total value of digital formats rose 10.6% to $207.6 million, driven by streaming revenue increases.
Denis Handlin AM, ARIA Chairman and Chairman & CEO of Sony Music Entertainment Australia & New Zealand and President, Asia was enthusiastic about the positive results released today:
“It is exciting to see our local industry return to growth in 2015. The music business has continued to manage its way through times of challenge and transition.
“While the work with Government, ISPs and other service providers to ensure artists and record labels are properly rewarded for their creative efforts is far from over, Australian music fans are embracing the many legitimate platforms where an incredible range of local and international music is widely available. This result is a credit to the continued high quality work being produced by our brilliant local artists, as well as to the tenacious approach our local industry takes in marketing and delivering music to fans across the country."
Revenue from physical sales remained steady, falling just 3% in 2015 compared to the 18% the previous year, emphasising the important role physical music retailers continue to play. In addition, the vinyl revival continues with revenue from vinyl sales rising 38% for the year.
ARIA CEO, Dan Rosen was also optimistic about the future of the local industry:
“It is a testament to the on-going innovation and resilience of our local music industry to see a return to growth in 2015. Australian music fans are consuming more music than ever before and did so across an unpreceded number of formats from streaming and downloading on mobile devices, to buying CDs and vinyl at local record stores.
“Already in 2016, we have seen some big Australian releases and a growing number of local artists hitting the international stage. No doubt there is more to come, which will set the stage for celebrations later in the year of the 30th Anniversary of the ARIA Awards.”
Expect local releases from: Ball Park Music, Big Scary, Birds of Tokyo, Bob Evans, Cyrus, Dami Im, Delta Goodrem, Dope Lemon (Angus Stone), Drapht, Empire of the Sun, Fait, Flume, Hockey Dad, Horrowshow, Human Nature, Jai Waetford, Jess & Matt, Jessica Mauboy, JOY., Keith Urban, Kenny Chesney, King Gizzard & the Lizard Wizard, Kucka, LDRU, Marina Prior & Mark Vincent, Meg Mac, Olympia, Paul Dempsey, Peking Duk, RUFUS, the Delta Riggs, The Veronicas, Thomston & WAFIA, Thundamentals & Tigertown
Expect international releases from: Anohni, A$AP Ferg, Badbadnotgood, Boys Noize, De La Soul, Fifth Harmony, Good Charlotte, Kygo, Ladyhawke, M83, Meaghan Trainor, Miles Davis, P!NK, Pitbull, Snakehips, Tom Odell, ZAYN.