We’re used to hearing about growth from streaming services year-in-year out across the globe – but that wasn’t quite the full story in Australia last year.
According to new ARIA data, revenues generated by ad-supported streaming music services in the territory last year dropped by 13.03%, down from AUS $10.2m to AUS $8.9m.
These ‘free’ platforms contributed just 2.8% of Australia’s overall income from recorded music in 2014.
However, as you can see below, subscription streaming services charged forward, with income more than doubling – up 111% to AUS $23m.
Streaming services available in Australia include Spotify, Guvera, Tidal, Rdio and iTunes Radio.
In early 2014, Australian radio stations were asked to pay two licences to broadcast ‘simulcast’ streaming content online.
Many refused and pulled their broadcasts from digital outlets. If counted by ARIA’s numbers, any resultant loss of ad revenue may be a factor in the slowdown of ad-supported income on streaming platforms.
In a year when digital album sales fell significantly in both the US and UK, it’s interesting to note that the format’s income dropped by just 0.38% in Australia last year, where it remains a big money maker for the industry.
Although digital track sales dropped by 10.2% in value terms to AUS $85.2m, they are still the biggest digital money-spinner at the disposal of the Australian industry and by some distance.
In fact, combined digital album and track downloads brought in AUS $152.2m in 2014. That’s around five times as much money as all types of streaming services managed to contribute in the year.
Music Business Worldwide
