Household consumption of music - Industry - Music

Spending on recorded media has fallen whilst concert and nightclub ticket purchases has increased

In real terms, spending on music by households is relatively steady – with only a slight decrease in real terms between 2003-04 and 2009-10.

Spending on services such as music concerts and fees has risen, whilst there has been a decrease in spending on media such as CDs and records to half what it was in 2003-04.

Table 8 - Spending by Australian households on music-related goods and services – 2003-04 and 2009-10

Weekly household expenditure 2009-10 ($)Weekly household expenditure 2003-04 ($)% change in real terms
Audio equipment3.523.345%
Media (e.g. CDs and records)0.921.96-53%
Musical instruments0.460.80-43%
Services (Concerts and nightclubs)2.411.5061%
Total music related7.317.60-4%
Total spending on goods and services1,236.281,061.3116%

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Recording industry - Industry - Music
Tag : recording

Australians purchased almost 100 million sound recordings in 2011, including CDs, vinyl, digital tracks and music ringtones.  Audience demand for major music performances reached over 10 million tickets in 2010/11 – generating sales of more than $1 billion.

This means Aussies are consuming music faster than ever.

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Recorded music is consumed by nearly all Australians most days of the week

Almost all Australians (99 percent) listen to recorded music, and 92 percent do so weekly or more. On average, Australians listen to recorded music every one to two days (222 times a year).

Recorded music is consumed significantly more often by people under 44 than those over 45 years.

 

 

 

 

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Two-thirds of the 15,000 tracks released each year in Australia are rock, pop and dance tracks

In 2011-12, 15,910 new Australian music tracks were publicly released – capping off over 150,000 over the past ten years.

ARIA estimates that over two-thirds of tracks released in Australia in 2011-12 were rock, pop and dance tracks (69 percent). Country/folk (12 percent), classical (7 percent) and soul/R&B (3 percent) were the next three most popular categories, with less than 500 tracks in each of the remaining categories; easy/MOR/nostalgia, jazz, ambient, childrens, traditional.

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Tag : recording

After many years of declining revenues the recorded music market is steady, thanks to rising digital sales.

Physical sales revenue continues to fall, but digital sales are growing faster as fans buy more online, and embrace subscription services such as Spotify.

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Digital music sales have experienced rapid growth, overtaking physical products for the first time

Overall sales figures released by ARIA show that the dollar value of sales of sound recordings and music videos has decreased by 12% in 2013, following a slight increase in 2012.

While physical sales have continued to decline, digital sales have grown rapidly over the last four years and now account for 55% of the total market at $192.3 million, overtaking physical music products for the first time.

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Australia is amongst the leading digital music markets internationally

In terms of digital consumption, Australia was the first market in the world where our growth in digital outpaced our fall in physical sales, even prior to the uptake of music streaming subscription services Spotify, Deezer and Rdio.

IFPI estimated the digital music market accounted for 47 percent of Australia’s recorded music sales in 2012 (up from 38 percent in 2011), placing it in 5th position amongst the leading markets in terms of digital uptake internationally.

The IFPI notes a range of factors boosting the digital music sector internationally, including major players expanding their services into new markets, new players entering the market, the emergence of new partnerships, the continued advance of subscription services and ad-supported streams, better monetisation around music videos, positive developments in the legal environment in specific countries and the rapid growth in devices such as smartphones and tablets.

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Digital music has contributed to greater demand for single tracks, in place of full albums

The ‘a la carte’ model (where the consumer pays per track or per album) has contributed to a trend towards sales of single tracks, away from albums.

Single digital tracks now make up the majority of units sold. However their smaller average unit price means they only account for 27 percent of wholesale market value.

CD album sales have fallen from around 50 million units in 2006 to 20 million units in 2013, yet they still make up 40 percent of market value, with higher average unit prices than digital music.

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Music subscription services will continue to transform the recorded music market

The number of consumers subscribing to music services globally is estimated to have increased by nearly 65 per cent in 2011, reaching more than 13 million people. IFPI believes the subscription model is supplementing the tens of millions of consumers using download services, and noted no ‘cannibalisation’ of the digital download market in its Digital Music Report 2012.

In Australia, the availability of an increasing number of services is expected to fuel further growth in the digital market in the future.

As of March 2012, there were an estimated 32 legitimate digital music services in Australia.

 

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Unauthorised file sharing has a significant impact on the music industry

Based on 2010 findings, Music Rights Australia reports that around 2.8 million Australians download unauthorised music via file sharing networks every year. A quarter of these individuals claim to do this every month (700,000 Australians).

Recent international research estimates the practice is even bigger, with 28 per cent of internet users thought to access unauthorised services on a monthly basis.

Research on BitTorrent (the most used file sharing P2P protocol worldwide with 100 million regular users) in Australia found that 89.9 percent of all torrent files from the sample examined were confirmed to be infringing copyrighted content. Of the files in the top three categories (movies, music and TV shows), there were no legal torrent files in the sample.

 

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Recent years have seen a decline in the number of music retail stores

The number of retail music stores has declined in the past decade. In the early 2000’s the number of stores contributing data to the ARIA charts included around 1,100 stores. Today there are closer to 600 specialty music stores.

Over that time there has been a significant reduction in the number of chain locations, whilst some smaller specialist retailers have sustained their businesses servicing a small but committed customer base away from high traffic shopping centres.

According to the Australian Music Retailers Association (AMRA), some of the key factors affecting the retail business include:

  • Declining average unit prices
  • Rise of digital downloads
  • Unauthorised file sharing
  • International online retailers (eg Amazon)
  • Increased cost of rental spaces.

 

In addition to specialty music stores, music products are also sold though supermarkets, at petrol stations, markets and performances.

 


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Physical products are evolving towards niche interests and deluxe products and packages

IFPI predicts that physical products will remain a significant element of the music industry, and notes a trend towards deluxe products or bundles with merchandise or concert tickets.

Whilst small in size, in recent years the vinyl market has reached three or four times its level in the mid-2000s, and growing sales in leading markets suggest this trend will continue in the near future.

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Rights - Industry - Music

Broadcasting, performance and use of live and recorded music generated over $290 million in licence fees in 2012

APRA | AMCOS have licences in place with 84,000 licensees, and have 81,000 members.

It paid 244,623 music creators and rights holders in 2011-12 and distributed around $237 million in royalty distributions to songwriters, composers and publishers.

PPCA have licences in place with over 54,000 venues Australia-wide, including clubs, hotels, bars, restaurants, fitness centres, shops, halls and dance studios for the broadcast, communication or public playing of recorded music. It also grants licences to radio and TV stations.

On behalf of rights holders, it distributed over $29 million to licencor labels and registered Australian artists in 2011-12.

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Broadcasting on TV and radio generate high licence fees, but digital and online consumption is growing fast

Australian business expenditure on music broadcasting is well established, with APRA | AMCOS collections from TV and radio continuing to grow in excess of $100 million. Licence fees earned from live public performances and live events are also significant.

Digital and online spending reported by APRA | AMCOS exceeded $30 million in 2011-12 – having grown substantially each year for the past five years.

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Australia’s global ranking - Global - Music

Australia is the sixth largest music market in the world, representing three percent of the total global music market

The USA and Japan are the biggest markets for recorded music in the world, together representing more than half of all sales of recorded music in 2011. Australia ranks sixth in terms of recorded music market size, slightly ahead of Canada.

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Competitiveness of Australian musicians - Global - Music

The Australian market favours international artists, to a higher degree than do other markets such as the USA, UK and Canada

International acts dominate the top selling albums in Australia.

Local acts accounted for 30 of the national top 100 albums in 2010, up from 26 in 2009, led by Angus and Julia Stone’s Down the Way at #7. In contrast, local acts account for around 50 percent of the top albums in France, Germany and Japan.

Australia ranks 34th in a list of 48 markets in terms of the proportion of local products in our recorded music market, with just 25 percent of physical products sold originating in Australia. This places us slightly behind our most comparable market, Canada.

The PPCA’s ‘most played’ lists reflect a similar picture – showing an average of 24 Australian recordings in the top 100 between 2005 and 2011 – and just an average of two in the top 10.

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Few Australian artists achieve the success of international stars, but the past fifteen years have seen Australian artists increase in popularity

Over the long term, the proportion of Australian works represented in Australian record sales appears to be increasing, based on indicative estimates compiled from record industry reports to ARIA.[1]

However, the proportion fluctuates markedly from year to year, depending on particular artists’ popularity at a given time.

Analysis of Australia’s ‘most played’ lists suggests that Australian representation peaked in 2008, with 28 tracks in the Top 100 most played tracks, and 19 artists in the Top 50 most played artists.

[1]   Figures are based on reporting by record companies to ARIA, and do not constitute an analysis of total Australian sales. These figures should be viewed as indicative only.

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