NZ music industry posts second straight year of growth

After 15 years in decline, the New Zealand music business has posted its second year of double digit growth.

Wholesale figures released today by Recorded Music NZ stated that total revenues rose by 16% to NZ $86,198,000 in 2016.

This was on top of 2015’s 12% growth when it generated $86,198,000.

As with the case in most major music markets, including Australia’s, NZ’s growth was fuelled by the streaming phenomenon.

It is the dominant channel through which music is consumed in NZ and accounts for 50% of revenue.

Recorded Music NZ CEO Damian Vaughan says, “We’re delighted to see continued industry growth in 2016 thanks largely to the unprecedented rise of streaming which generated more than $40 million in 2016, up a remarkable 169% from 2015.

“Streaming services have emerged and thrived in NZ, giving consumers even more choice as to accessing and enjoying music in the digital age.”

Recorded Music NZ’s statistics also showed public performance and broadcast revenues were up 4% to $14.2 million. They made up 16% of revenue.

Downloads were down to 13%, but still contributed over $10.9 million.

Physical sales also declined, but were still 21% of revenue, or $17.7 million.

“It’s clear that consumers still enjoy purchasing music in a physical form,” says Vaughan.

“We’ve particularly noticed a surge in the purchases of vinyl which contributed 14% of all physical sales in 2016 and its revenue has grown from $1.6 million in 2015 to $2.5 million in 2016.

“We’re looking forward to building on this momentum in 2017 and beyond, both here and internationally.

“In 2016 we had a record equalling 8 number one Kiwi albums, and a growing number of artists making their impact throughout the world.

“It is truly an exciting time for our industry and 2017 will be another outstanding year for New Zealand music.”