Local Streaming Market ‘Will Be Carnage’

The music streaming market in Australia was given a blunt assessment by experts and stakeholders yesterday, as they admitted the sudden entries of multiple competitors into the market meant there would be a number of casualties.

The panel, which took place as part of ARIA Week's ARIA Masterclass yesterday, featured representatives from locally available streaming services Spotify and JB Hi-Fi Now as well as video giants YouTube and Vevo.

Scott Browning, Marketing Director of JB Hi-Fi, whose streaming service was one of the first to enter the market but hasn't been the most prominent, admitted that there was a lot of competition in the market with as many as ten services launched in the last 12 months.

“The nature of competition is that it favours winners, so there's going to be a lot of losers,” he said. “It's going to be carnage, but it's going to be fun.”

The panel argued that streaming services were legitimising music digitally by providing an alternative to illegal downloads, and that it was possible they could evolve into a dominant economy in the music industry.

Browning said, “The model is in place now, it's mathematically and technically possible to run wild.”

Pressed to predict the next 12 months of the industry, Spotify artist in residence D.A. Wallach joked that “Spotify will take over everything!” VEVO's Senior VP International Nic Jones replied sarcastically, “That's a really mature answer.” He added, “If any of us knew we wouldn't be sitting here right now.”

Current streaming services in the Australian market include JB Hi-Fi Now, Spotify, Rdio, Mog, Deezer, rara, Songl as well as specific device-aimed Sony Music Unlimited, BBM Music, Xbox Music and Samsung Music Hub.