Streaming subscription revenue rises 133% in Australia to top $80m

59 shares

The wholesale value of Australia’s recorded music market has risen for a second consecutive year as the growth in income generated from ad-funded streaming dramatically slows.

According to figures from ARIA, the market is up 5.5% in 2016 after generating AUS $352.2m (US $269.7m) in revenue.

Growth is attributed to a 90.5% surge in streaming revenues across paid and free tiers.

The lion’s share of that rise is from income earned from paid subscription, which rose 133% on 2015 to AUS $108m (US $82.7m).

After a 179% surge in 2015, income from ad-funded streaming (that covers YouTube, Vevo and Spotify’s free tiers, alongside non-interactive offerings from the likes of Pandora) was up just 12% to AUS $28m (US $21.4m).


Music streaming revenue has become the dominant consumption format for Australian music fans, now accounting for 38.5% of overall market by value.

The streaming growth fuelled an overall 17.6% increase in total digital market, totalling AUS $244m (US $186.8m).

Digital sales now account for approximately 70% of the total market.

Revenues from physical formats reached AUS $107.9m (US $82.6m) – 30.6% of the total market.

Vinyl rose for the sixth consecutive year by 70% to over AUS $15.1m (US $11.6m) in value.


The total $352.2m figure is up from AUS $333.5m (US $252m) in 2015 – a year which saw a rise in revenue by 4.94% after a 10% decline in 2014.

Australia’s market value is worth just over two thirds of what it was a decade ago, when revenues tipped AUS $511.8m.

ARIA’s numbers count the amount of money that came through the door at record companies after retail and other expenses are deducted.

“The growth is a reflection of the industry’s innovative marketing and high level of artist development, as well as the further consumer take up of quality digital retail services.”

Denis Handlin, ARIA and Sony Music Entertainment

Denis Handlin AM, ARIA Chairman and Chairman & CEO Australia & New Zealand and President, Asia, of Sony Music Entertainment, said: “The industry is delighted to achieve continuing growth in 2016 building on the positive results from the previous year.

“This is a reflection of the industry’s innovative marketing and high level of artist development, as well as the further consumer take up of quality digital retail services.

“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.”

2016 was a good year for local artists on the ARIA Charts with a record breaking 20 Australian artists scoring No.1 albums.

Dan Rosen, Chief Executive Officer ARIA, added: “The continued growth that we have seen in 2016 is a testament to the ongoing creativity and resilience of our local industry.

“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.”

dan rosen, aria

“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 No.1 albums, multiple ARIA award winner Flume (pictured) winning a Grammy, and a growing number of our local artists having success on the international stage.”

Music Business Worldwide

Related Posts