Streaming Helps ARIA Achieve First Wholesale Revenue Increase Since 2012

Doomsayers be damned — the Australian Recording Industry Association (ARIA) has announced that the Australian recorded music industry has enjoyed a 5 per cent spike to its wholesale revenue figures for 2015.

The boost — which translates to growth of $333.8 million — is in no small part thanks to the continued increase in impact from consumers utilising emerging digital business models, in particular both subscription- and non-subscription-based musical streaming services such as Apple Music, Spotify, Google Play and others.

In fact, taking into account the near-doubling of streaming revenue, digital services comprised the solid majority — 62% — of the overall market by value, up from 59% in 2014. That upswing comes with internal shifts of its own as digital download revenues dropped 12.96% in the face of a streaming-driven overall income rise of 10.6% ($207.6 million).

"It is exciting to see our local industry return to growth in 2015," ARIA chairman and Sony Music Entertainment Aus/NZ chairman, chief executive and President, Asia Denis Handlin AM said in a statement. "The music business has continued to manage its way through times of challenge and transition.

"While the work with government, ISPs and other service providers to ensure artists and record labels are properly rewarded for their creative efforts is far from over, Australian music fans are embracing the many legitimate platforms where an incredible range of local and international music is widely available.

"The result is a credit to the continued high-quality work being produced by our brilliant local artists, as well as to the tenacious approach our local industry takes in marketing and delivering music to fans across the country."

The 3 per cent boost enjoyed by digital services is reflected in a swing of the same degree in the opposite direction for physical formats, though that's a much smaller drop than experienced in 2014, when the segment fell a considerable 18%. This was potentially aided by an incredible 38% spike to vinyl sales revenue, leading ARIA chief executive Dan Rosen to effusively say of the industry's potential: "It is a testament to the ongoing innovation and resilience of our local music industry to see a return to growth in 2015."

"Australian music fans are consuming more music than ever before and did so across an unprecedented number of formats from streaming and downloading on mobile devices to buying CDs and vinyl at local record stores," he said in a statement.

"Already in 2016 we have seen some big Australian releases and a growing number of local artists hitting the international stage. No doubt there is more to come, which will set the stage for celebrations later in the year of the 30th anniversary of the ARIA Awards."