News April 13, 2016

Streaming sees NZ music biz’s first revenue growth in 15 years

Image: Ladyhawke

New Zealanders’ reputation for being early adopters and a 200% take up of streaming saw the country’s music industry post its first revenue growth in 15 years.

Total wholesale revenue rose by 12% to NZ$74.4 million (A$67.15 million) in 2015, according to new figures from peak association Recorded Music New Zealand.

Revenue from streaming services more than doubled to $25.7 million ($23.19 million), making it the largest contributor to the revenue pie. Streaming, which accounted for 7% of total revenue in 2013, representing $5 million ($4.5 million that year, and 19% in 2014, now accounts for 35%.

“Streaming services are still relatively new in New Zealand but have quickly established themselves and are now the preferred method of music consumption by Kiwis,” Recorded Music New Zealand’s CEO Damian Vaughan said. “The popularity of music streaming has aided industry growth enormously and our industry is determined to build on the momentum.”

Public performance and broadcast revenues for local artists increased 5% to $13.7 million ($12.3 million) and now 18% of revenue. The figure was 20% in 2014.

Downloads slowed 18% to $15.7 million ($14.1 million) and makes up 21% (29% the previous year).

Physical product sales continued to decline, down 10% to $19.3 million ($17.4 million) but still makes up 26%. It was 32% the year before. Vinyl sales increased to $1.7 million ($1.5 million), representing 9% of all physical sales.

Vaughan pointed out that piracy was still a major problem, estimating that the NZ music industry lost $1.5 billion ($1.35 billion) to illegal downloads over the past 15 years.

New Zealand’s other problem is that New Zealand artists only account for 5% to 10% of sales.

TOP SELLING ALBUMS OF 2015 IN NZ