Streaming continues to expand global recorded music revenue. Now, Australia has revealed just how much the medium has driven up its local industry.
Over the past few years, multiple music markets around the world have exploded – revenue-wise, that is.
And that’s all thanks to streaming.
In the US, for example, paid subscription streaming remains the largest driver of revenue for the American music industry. Last year, the recorded music market posted $4.7 billion in revenue, up 33% from 2017.
Paid streaming revenue also overtook physical and download revenue in the UK. The BPI found that paid subscription streams accounted for 54% of British labels’ income last year. Revenue from these streams grew 34% over 2017 to £468 million ($614 million). Overall streaming music revenue grew to £516 million ($687 million). Ad-funded streams (Spotify, Deezer, etc.) grew 25.8% to £19 million ($25 million).
Around the world, the IFPI found the global recorded music market grew 9.7% year-over-year in 2018 to $19.1 billion. Streaming revenue alone grew 34% to $9 billion, accounting for 47% – nearly half – of all global revenue. Paid subscription streaming grew 32.9%, and accounted for 37% of all global revenue.
Now, Australia has published its own music market findings.
Streaming remains the savior of the global music industry.
Unveiling its 2018 report, the Australian Recording Industry Association (ARIA) found that music revenue increased 12.3% to $526 million AUD ($374.4 million USD) last year. This marks the Australian music industry’s fourth consecutive year of growth.
Revenue from streaming music platforms – including Spotify, Apple Music, Deezer, and Google Play – grew 41.2% over 2017. The medium now accounts for $304 million AUD ($216.4 million USD), or 71.4% – nearly two-thirds – of Australia’s recorded music revenue.
Physical formats now account for just 15% of the Australian music market.
In addition, CDs may soon fade out in Australia. Album revenue fell 31% year-over-year to just $53 million AUD ($37.7 million USD).
Continuing its resurgence, vinyl revenue grew 15.2% to $21 million AUD ($15 million USD).
Speaking about the findings, ARIA Chairman Denis Handlin (who doubles as Chairman and CEO of Sony Music Australia & New Zealand), explained,
“This result is a testament to the great music that is being produced by our outstanding local artists, as well as the tenacious approach that our local industry takes in marketing and delivering music from all around the world to fans across the country.”
Stu Bergen, CEO of International and Global Commercial Services for Warner Music Group, noted the country is “growing significantly.”
“Australia continues to be a good place for creative expression and creative talent.”