Christopher Hughes
Research expert covering Australia and New Zealand
Music industry in Australia - statistics & facts
In recent years, the worldwide music industry has been dominated by two key elements. Firstly, the rise of digital music providers, including music streaming services such as Spotify and Deezer, as well as platforms for downloading digital music, such as Apple Music (initially through its now defunct iTunes service) and Amazon Music. It’s predicted that over the next few years, music streaming will see increased average revenue, whereas downloads will see the gradual shrinking of revenues.
Secondly, a significant increase in consumer interest and the resulting market growth in physical formats, more specifically, in vinyl records. The music industry in Australia is no exception, as both of these trends are also reflected in the country’s music market.
When it came to spending on entertainment services as a whole, Australians spend big, regardless of generation. In fact, mature listeners seem to spend the most at around 60 Australian dollars, which is five AUD more than the national average. In terms of the number of subscriptions, nearly all consumers from Generation Z had at least one, and across every generation far more than half said they had one.
The resurgence in the popularity of records has proven lucrative for the industry, with both the wholesale sales value and volume of vinyl records having seen steady year-on-year-growth almost every year since 2013. Other physical formats haven’t fared quite so well, however. Other physical formats haven’t fared quite so well, with wholesale sales value and volume of CDs seeing rapid decline.
Secondly, a significant increase in consumer interest and the resulting market growth in physical formats, more specifically, in vinyl records. The music industry in Australia is no exception, as both of these trends are also reflected in the country’s music market.
Streaming, downloads, and consumers
The global dominance of streaming service Spotify also extends to Australia, with its mobile app being far and away the most downloaded. Its closest competitors, YouTube Music and SoundCloud, had less than half the number of app downloads, which is further reflected when examining market share; Spotify was the go-to app for nearly half of Australia’s listeners.When it came to spending on entertainment services as a whole, Australians spend big, regardless of generation. In fact, mature listeners seem to spend the most at around 60 Australian dollars, which is five AUD more than the national average. In terms of the number of subscriptions, nearly all consumers from Generation Z had at least one, and across every generation far more than half said they had one.
The return of vinyl has put the music industry in a spin
With the increasing digitization of the music industry and resulting loss of physical interaction with a tangible product, consumers begun to seek a way to reclaim this experience, the result being the vinyl sales boom of the last few years. Initially beginning in the used market, more and more artists are pressing new records, often in limited edition colors and including bonus tracks, album art and expanded inserts.The resurgence in the popularity of records has proven lucrative for the industry, with both the wholesale sales value and volume of vinyl records having seen steady year-on-year-growth almost every year since 2013. Other physical formats haven’t fared quite so well, however. Other physical formats haven’t fared quite so well, with wholesale sales value and volume of CDs seeing rapid decline.
