In 2016, Streaming accounted for 40% of Australian Music Revenue

Image Source: SXSW site
Jasmine Crittenden
| May 9, 2017

From 15 May 2017, the ARIA Album Charts will incorporate streaming. The move reflects the enormous growth in streaming, with it having accounted for 40% for Australian music revenue in 2016, representing a 90% increase since the previous year.

“The ARIA Charts are an Australian institution, followed by the music industry and fans alike, so it is essential that we continue to reflect how Australians are consuming music. With streaming now the primary method of music consumption in Australia, ARIA can ensure that the ARIA Albums Chart will continue to be the most accurate indication of the nation’s favourite music each and every week,” said Dan Rosen, CEO of ARIA.

The change brings the Album Charts up to speed with the ARIA Singles charts, which have included streaming since November 2014. At this stage, the services to be counted are Spotify, Google Play, Deezer and Apple Music. Others will be added when they are in a position to offer appropriate data.

The process for calculating the worth of streamed music, in comparison to purchased music, is complex. ARIA will employ a strategy used across Europe and by the Official Chart Company in the UK. This involves two steps. Firstly, the number of streams of the two most-streamed songs on the album are reduced to the average of the next eight most-streamed songs or, for albums with fewer than ten songs, the rest of the tracks. This aims to make sure that hits do not make an exaggerated contribution to the album’s overall performance.

Secondly, the number of streams of the ten most-streamed songs, or for albums with fewer than ten songs, the rest of the tracks, are added up and converted according to a 1:175 ratio. This ratio is already used in the calculation of the ARIA Album Charts.

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