The Australian Recording Industry Association (ARIA) has released its 2018 wholesale figures, which showed a hugely successful year for the Australian music industry generating $526 million in revenue representing 12.26% annual growth. The hero in the story is streaming, which continues its explosive growth to now account for over two thirds (71.4%) of overall market by value. The streaming category 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).
Revenues from shipments of physical products accounted for 15% of the total market, with sales from vinyl albums increasing for the eighth consecutive year, up by 15.2% in 2018. By value, vinyl made up just under 28% of revenues from physical formats.
Denis Handlin AO, ARIA Chairman and Chairman and CEO of Sony Music Entertainment Australia affirmed that “for the fourth consecutive year, there has been growth for the Australian recorded music business.” Dan Rosen, Chief Executive of ARIA attributed the growth (which eclipsed the international growth rate of 9.7%) to the “enduring creativity and resilience of our local industry.”
The International Federation of the Phonographic Industry (IFPI) is the global advocacy body for the recording industry. They published their 2019 annual report on April 2, confirming that global recorded music revenues totalled US$19.1 billion in 2018, with a growth rate of 9.7%. Despite being lower than the Australia growth rate, it was the highest international growth rate since they started tracking the market in 1997. The international figures illustrate not only the strong growth of the Australian market, but also the relative transformation of the local industry, as streaming accounts for 71% of revenues locally but only 47% of revenues internationally. Australia still ranks in the Top 10 Music Markets worldwide, coming in at number 8.