Global Music Execs Concerned Over Australian Revenue Decline

One of the world's top music executives has admitted that the global industry is concerned over the sharp drop of recorded music sales in Australia last year.

After celebrating rising sales in 2012, the market took an 11.68 percent hit in 2013 and slumped to a record low since digital sales were first recorded in 2005.

Speaking in a conference call to launch global recording industry body IFPI's Digital Music Report 2014, Max Hole, Chairman and CEO of Universal Music Group International, admitted that they were anxious over the figures.

“Of course we're concerned,” Hole said, responding to a question from theMusic.com.au.

“We're now in a position where we have a portfolio business, we sell a whole array of products. As I mentioned early on the physical business has held up better than we though, particularly in the deluxe part, but it's declining nonetheless.”

Streaming and subscription music models, which doubled in 2013 to generate $20.9 million in revenue and make up 5.9 percent of the Australian market, is now what the industry is looking to as its saviour.

“The download business is at different states of development in different parts of the world and in Australia it's definitely reaching maturity,” Hole said. “The streaming and subscription part of the play in Australia probably needs another year for it to really kick in and take up the slack and return the country to growth.

"So I think, of course we're concerned, we're always concerned in any country where we see a decline, but I think it in the long term sense there's no reason to expect the streaming and subscription business won't pick up the slack in Australia going forward.

Edgar Berger, President and CEO, international, of Sony Music Entertainment added, “And even for Australia there's a positive in this news that you are predominately digital now [54.7 percent of the market], which is for sure here to stay, so most likely very sustainable.”

Despite their concerns, however, it's good to know that the humour hasn't got out of the industry. Hole had originally blamed the drop in Australian music sales on the nation's focus on the Ashes.

“All of the people in Australia were watching the cricket, watching Australia beat England,” Hole told theMusic.com.au. “Which is the reason the market went down because they didn't have time to go and buy music.

“I couldn't resist that,” he added.