The Australian Recording Industry Association (ARIA) has announced a 4% increase in the value of the Australian recorded music industry in 2012.
The increase in value to $398.1m was the first upwards trend the industry has experienced in its annual wholesale figures since 2009.
The continued uptake of digital music combined with a host of new streaming services entering the local market resulted in over 46% of the market’s value coming from digital products in 2012, compared to 36.7% in 2011.
The number of physical products sold in 2012 dropped only 6.42% on the previous year, a vast improvement on the 13.85% drop in 2011, as physical products continued to remain the industry’s dominant revenue earner, accounting for a 53.7% share of the market. This signals the continued demand for CDs, DVDs and vinyl amongst a large portion of the Australian music buying public.
ARIA Chairman Denis Handlin said: “It is very pleasing to see the Industry achieve growth in 2012. The Record Industry has revolutionised over the past decade and has led the way in new business models, in particular licensing digital services, whilst strongly supporting traditional CD retailers.
"While our work with Government and ISPs to ensure artists and their record labels are properly rewarded for their creative efforts is still far from finished, the demand for music is as strong as ever and Australian music fans are embracing the many legitimate platforms where an incredible range of local and international music is widely available. This is testament to the continued creative work of our brilliant artists and the innovative approach of our local industry in marketing and taking music to fans across the country. "
ARIA CEO, Dan Rosen was also optimistic about the future of the local industry: “2012 proved to be a formative year for the Australian recorded music industry, as digital music consumption grew with an influx of new streaming services, both ad-supported and subscription-based, yet with the physical retail sector continuing to prove its worth in the hearts and minds of
Australian music fans. The continued innovation in new music services, means fans of all types, can now get their music when and how they want, whether by streaming, downloading or visiting their local record store. This access, combined with a host of great local and international releases, means it is a great time to be a music fan in Australia.”
It is hoped the positive results achieved across the recorded music industry in 2012 continue well into 2013, with the increasing emergence of new music business models alongside a host of big album releases expected over the next 12 months.
Local releases expected in 2013 include Bernard Fanning, Birds of Tokyo, Bob Evans, Boy & Bear, Hermitude, Hilltop Hoods, Jessica Mauboy, John Butler Trio, Justice Crew, Karise Eden, Matt Corby, Nick Cave & The Bad Seeds, Reece Mastin, Samantha Jade, The Drones, Timomatic and Washington. While it is expected that international artists including 50 Cent, Bon Jovi, Celine Dion, Dave Grohl, David Bowie, Dido, Eminem, Foals, Goo Goo Dolls, Jack Johnson, Justin Timberlake, Lady Gaga, Metallica, Michael Buble, Phoenix, Tegan & Sarah, The National, and Vampire Weekend will all have albums in the market place within the next 12 months.
ARIA Wholesale Figures 2005 to 2012 – Total (AUS) Dollar Value