Digital now represents 60% of music revenue in NZ

The uptake of digital music continues to rapidly climb in New Zealand, according to new wholesale figures for 2014 released by trade association Recorded Music NZ.

Altogether, the market shrunk 0.8% to $66 million from $72.2 million in 2012.

Digital music now makes up 60% of revenue by format, with downloads generating $19.1 million and streaming growing 15% to now represent 24% and generating $12.7 million. (It represented only $5 million and $1.8 million in the previous years).

CDs made up $21.4 million, lessening in sales but still the number one source of income by format. (CDs brought in $35.5 million in 2012 and $27.1 million in 2013). Reflecting a worldwide trend, vinyl album sales jumped 200% from 2013 to now account for over NZ$1 million in revenue.

Public performance and broadcast fees generated $13 million, up from $11.2 million in 2012.

Recorded Music NZ CEO Damian Vaughan pointed out that the diversification of recorded music revenue was a reflection of the way the consumer market has broadened and the different ways it consumes music.

“More than ever we have seen revenue spread near equally across multiple and very diverse sources,” Vaughan said. “This is a direct result of fans’ ability to purchase and listen to their favourite songs in so many new varied ways – from streaming and downloads to the local record store.

“That makes it more important than ever for record companies and recording artists to understand who their audience is, where they are and how they are consuming music. We really are spoilt for choice when it comes to our options in NZ and our artists have the ability now to reach their fans in a more meaningful and targeted way.”

According to figures previously released by Recorded Music NZ, the top selling NZ tracks were Timmy Trumpet and Savage’s Freaks, followed by Ginny Blackmore & Stan Walker’s Holding You, Broods’ (pictured) Bridges, Lorde’s Royals, Lorde’s Yellow Flicker Beat, Broods’ Mother & Father, Lorde’s Team, Benny Tipene’s Make You Mine, David Dallas feat. Ruby Frost’s The Wire, and Six60’s Special rounding off the Top 10.

Pharell Williams’ Happy was top selling single. Ed Sheeran’s X was 2014’s top selling album with NZ classical trio Sol3 Mio’s self titled album at second spot.