The Australian Music Industry received a boost in revenue from streaming services in 2014 with ARIA reporting licensing revenue more than doubled for the year.
Revenue from streaming services increased 111% over the previous year generating $23 million in revenue for the Australian Recording Industry Association (ARIA). ARIA is the record label collective representing more than 100 music labels both major and independent.
Digital subscription services now make up 10% of revenue for ARIA, mirroring the trend internationally.
ARIA expects this trend to increase through 2015 with new services about to be launched by YouTube and Apple.
As the audience changes its listening and purchasing habits, the positive increases at the streaming end have diluted other music consumption. In 2014 digital music sales decreased by 2.36% and physical sales were down 18% leading to an overall decrease in music sales of 9.62%.
The positive news for physical sales was a 127% increase for vinyl sales.
Translating sales figures into revenue figures told a different story. As with the US market the boom is streaming has had a negative effect on sales revenues. Total music revenue was $317,790,300 in 2014, down from $351,618,966 in the previous year.
In a statement, ARIA CEO Dan Rosen said, “As the industry continues to transform itself, we remain committed to embrace our digital future. Our goal as an industry is to make it easier for music fans to support the artists they love by developing innovative new ways to sell music. The continued growth in the subscription market shows that the local music industry is leading the way in streaming digital content. It is an exciting time, as the consumption of music grows through an ever-expanding range of options– whether through subscription services, digital downloads or visiting the local record store to buy vinyl.”
ARIA summarized the results of 2014 stating, “The local industry continues to manage its way through times of challenge and transition, and it is very encouraging to see that consumers have continued to embrace legitimate digital services, as illustrated by the growth in the subscription streaming market”.
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