ARIA posts gains for 2020, powered by streaming

Australia’s recorded music industry punched through a difficult year, posting 7.3% growth across the market, with streaming services powering most of the gains.

According to new data published Wednesday (31st March) by ARIA, the national record business lifted to $542 million in 2020, for the sixth successive year of growth.

There were winners and losers among the formats.

Streaming platforms were at the top of the tree once again, posting growth of 14% in the year of the pandemic, though the rate of growth cooled from the 30% reported the full-year period.

Subscription platforms specifically, a category that includes Spotify and Apple Music, generated $362 million in the calendar year 2020, up from $317 million in 2019, while ad-supported and video streaming services boasted modest gains.

Vinyl albums keep spinning a happy tune. Vinyl enjoyed a 32% rise against the previous year to $29 million, or 5.4% of the total market.

ARIA pie chart for 2020

Most other format fell into the “losers” column. Download sales were down, CDs sales also. Indeed, vinyl is just $1 million shy of the total revenue of CDs, and the tipping point is expected to occur this year.

The growth in the recorded music market “reflects the important role that music played for Australians going through a very challenging year with numerous lockdowns and widespread uncertainty due to COVID-19,” reads a statement from ARIA.

The trade body isn’t bragging about the results while the live sector is in turmoil. “Despite the growth in recorded music,” the statement continues, “it has been a very challenging year for the music industry as a whole with live music shut down in March 2020 and still running well below capacity.”

The new ARIA data mirrors the 7.4% global growth recently announced by IFPI.

This article originally appeared on The Industry Observer, which is now part of The Music Network.