Australian recorded music revenues drop by another 10% in 2014

In spite of a proliferation of music streaming services - or perhaps because of it - the Australian music industry continues on a steep decline that has seen it shrink by over 40% over the past nine years. Even more impressive/terrifying is that 30% of that decline happened over the past five years.

ARIA, the Australian Recording Industry association, revealed that in 2014 the Australian recorded music industry lost another  9.6% over 2013. This is after it had lost 11.6% in 2013 over 2012. 

So let’s start with the only positive number, the growth of paid music stream subscriptions that were up 111% to AUS $23m. On the other hand revenues from ad-supported streaming service declined by 13% (which is a difficult number to digest). 

The decline in download sales meant that digital revenues shrunk by 2.36% or around AUS 4.5m. 

Physical sales continued to decline quickly as well losing AUS $29m - almost 18.4% - over 2013. This means that physical music sales now generate only a fourth of the revenues they generated back in 2005. 

ARIA, in spite of the extremely negative outlook, remarked that the government’s planned action to reduce copyright infringement, the success of Australian artists (registering 36 entries in the best selling 100 albums list) and the growth of subscription streaming services are positive signs for the industry. 

In addition - if it’s any consolation - the free-fall of the recorded music industry decelerated by some 2% compared to 2013. 

In spite of any positive signs though one has to wonder when the Australian recorded music industry may be able to turn a corner and whether by the end of this downturn there will be much of an industry left to speak of.

(Andrea Leonelli)