Australia record sales record biggest growth since 1996

The Australian music industry has recorded its biggest year of growth in more than two decades, pre-dating the advent of Napster which sent the global sector into a downward spiral, and Australian Recording Industry Association chief executive Dan Rosen believes the smart home will provide the next lift in years to come.

According to ARIA, 2017 saw total sales increase by 10.5 per cent to $391 million, up from $353 million in 2016. The double-digital growth is the largest since 1996 and means Australian music has recorded three straight years of growth in sales after 15 consecutive declines after file-sharing software Napster was launched in 1999 and music piracy spread across the globe.

"This is a great story for the industry and shows the resilience and innovation the industry has embraced over the last decade to return to growth," Mr Rosen told The Australian Financial Review.

"It's great to be in the tailwinds rather than the headwinds."

Australian artists such as Pnau, Dean Lewis, Amy Shark, Jessica Mauboy and Vance Joy dominated the ARIA charts in 2017, and Mr Rosen said it was his and the industry's challenge to make sure Australian artists have a voice and say in the global market.

"The big opportunity is the export market for Australian artists and Australian music," he said.

"Australian artists have greater access to international markets than ever before because of streaming services. For certain labels, the export market is doubling year on year. It's not easy, but we have a rich history of great artistry here in Australia and of artists being embraced by a global audience ."

Streaming services provide boost

Nearly half of ARIA sales came from streaming services, both ad-funded and subscription, with a combined $189 million. The majority of this was made up of subscription revenue at $169.6 million. Subscription revenue surged 54.8 per cent over 2017, while ad-funded jumped 64.4 per cent.

All physical sales declined over 2017, except revenue from vinyl albums sales which jumped 19.5 per cent to $18.1 million.

Mr Rosen said with the expected proliferation of smart home devices such as Google Home, Amazon Alexa and Apple HomePod, the music industry had another chance to boost its revenue.

"We've been looking at overseas markets where this is more developed, music is the most popular use of smart speakers. It's a huge growth opportunity for the business," he said.

"In five years, the industry has been completely transformed and we've embraced this business model which is returning us to growth. It's an exciting time, and it feels like it's sustainable growth, but we're hopeful the next wave of growth will come from smart speakers."

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