Streaming subscription revenue drives 6% growth for Australia recorded music industry in H1 2018

The wholesale value of the Australian recorded music market is on course to top its growth in 2017 with revenues up over 6% across the first half of this year.

From January to June, the recording sector earned revenues of AUS $195.6m (US $140m) — a rise of over AUS $11m year-on-year, according to figures from the Australian Recording Industry Association (ARIA).

The increase is largely down to growth in revenue from streaming subscription tiers, which rose 35% to AUS $104.9m.

In 2017, the Australian recorded music industry recorded its best growth for 20 years, rising 10% to hit revenues of AUS $391m.

Should the current rate of growth in 2018 continue until the end of the year, 2017’s figure will be topped.

In 2016, the market was up 5.5% after generating AUS $352.2m (US $269.7m).

In H1 2018, video streaming was also up 41% to AUS $14.6m, while ad-supported streaming tiers brought in AUS $12.6m — a rise of 32% on 2017.

Across subscription, ad-supported and video, streaming makes up 67.6% of revenues.

Track downloads were down by 32% to AUS $14.5m while digital albums dropped 36% to AUS $13.4m.

Behind subscription services, physical CD sales count the highest share of revenue at AUS $22.9m, which is down 30% on 2017.

Vinyl album sales rose 23% to AUS $9m. Overall, the market is 17% physical and 83% digital.

Some of the best-selling albums in Australia this year have included releases from Vance Joy (pictured), The Greatest Showman, Ed Sheeran and Drake.Music Business Worldwide

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