Streaming now accounts for 38% of overall market by value in Aus

The kids are gonn­­a be alright. Music streaming revenue has become the dominant consumption format for Australian music fans, now accounting for 38.5% of overall market by value, totally $135.5K.

In fact, streaming f­­­­­uelled the local industry’s 5.5% growth in revenue in 2016, generating $352.2 million.

The wholesale figures, released today by Australian Recording Industry Association (ARIA), continue the market’s return to growth for a second year running. In 2015 it reported a 5% increase thanks to streaming services such as Apple Music, Spotify, Google Play and others.

Revenue from streaming is now growing by 90.5% over the year. It’s also fuelling an increase in total digital market sales, up 17.6% to $244 million, and making up around 70% of the total market.

For the sixth consecutive year, vinyl sales are on the rise, up 70% to over $15.1 million in value.

As for downloads specifically? They’re following a typical downward trend. The iTunes-led format (along with ‘other digital’ formats like ringtones) generated over $105 million in recorded music revenues in 2016. That’s down from over $132 million in 2015, and over $152 million in 2014.

ARIA’s wholesale figures show the thirst for local music and its globally competitive caliber hasn’t wavered. 20 Australian artists scored #1 albums in 2016, collectively spending 25 weeks at #1 on the chart.

Artists which enjoyed multiple weeks at #1 last year were Jessica Mauboy with The Secret Daughter soundtrack (three weeks), Keith Urban with Ripcord (two weeks), Human Nature with Gimme Some Lovin’: Jukebox Vol.II (three), and John Farnham & Olivia Newton-John with Friends For Christmas (two). Scroll down to see the full list.

Dan Rosen, Chief Executive Officer ARIA, said in a statement:

“To think that the dominant form of our revenue is now derived from a category that did not exist five years ago demonstrates the innovative nature of the Australian music business.

“Record labels have done a great job in supporting their artists while embracing the multitude of ways consumers can legally access the music they love.

“It is truly exciting times for our local industry, with 2017 already seeing four Australian acts already having #1 Albums, multiple ARIA award winner Flume winning a Grammy, and a growing number of our local artists having success on the international stage.”

Denis Handlin AM, ARIA Chairman and Chairman & CEO Australia & New Zealand and President, Asia, of Sony Music Entertainment stressed the timely importance of copyright provisions for artists:

“Although our industry is now on a pathway to recovery, it is absolutely critical that Australia retains a strong copyright framework to ensure that artists and labels can continue to invest, innovate and protect their work and earn their fair share in the growing digital market.”

Australian #1 albums in 2016

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