Aus Music Industry Takes Big Hit Despite Surge In Streams And Vinyl

Surging sales and revenue in the vinyl and subscription streaming service sectors were not enough to buck a downward trend in 2014 as the recorded music industry revenue wiped off 10 percent of its value.

ARIA have today released the wholesale figures for 2014 and across both the physical and digital markets the industry posted a revenue decrease of 9.62 percent ($317,790,300) compared to 2013.

The quantity of sales was also down 13.48 percent (13,738,087 units).

Like 2013, it is another record low for the Australian music industry since digital figures were first recorded in 2005.

The losses were largely sustained in the physical album sales category, which dropped 18.63 percent in revenue (now $12,563,714) while the music DVD category was halved (now $757,645).

If there is a positive to be taken from those numbers it is that the decrease was slightly better that 2013's worrying 11.6 percent decrease in revenue.

Any industry that loses ten percent of its value in one year would be hitting the panic button, but small mercies are increasingly important for an industry that hit that button half a decade ago.

Those mercies come in the form of vinyl sales and streaming services, both of which doubled in 2014.

Vinyl went from 137,658 units in 2013 to 277,767 units in 2014, an increase of 101.78 percent. Even more encouraging is that the revenue of those sales is up 127 percent.

Revenue from subscription services was up to $23,005,977 in 2014, a 111.26 percent increase from 2013's $10,890,064.

Softening today's blow, ARIA pointed to the success of Australian artists in 2014 – a year which saw 16 local #1s across the album and singles chart and international breakthroughs (and consolidations) for Sia, 5 Seconds Of Summer and Iggy Azalea.

“The remarkable success of Australian artists in 2014 is exciting news for the future as the music from our home-grown talent is enjoyed by music fans here and around the world,” said ARIA CEO Dan Rosen.

“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.”