While sales and revenue in the vinyl and streaming markets grew during 2014, mimicking an overall global trend, the success of these sectors weren’t enough to curb the downturn in the recorded music market, which lost just under 10 percent of its value last year, another record low for the industry.
According to ARIA’s recently released annual wholesale figures, the industry experienced a decrease totalling 9.62 percent from 2013 figures, which equals a whopping $317,790,300. The number of units shifted also fell, with consumers buying 13.48 percent less music, or 13,738,087 units.
While the decrease was slightly better than 2013’s 11.6 percent downturn, it will likely do little to console physical album retailers. Sales of physical records dropped 18.63 percent in revenue to $12,563,714, with the smaller music DVD category also declining, halved to $757,645.
Despite a significant increase in vinyl sales (sales were up to 277,767 units, considerably better than 2013’s 137,658 units) and a 127 percent increase in revenue, the physical sector is still in serious trouble, as subscription services saw a boost up to $23,005,977 from $10,890,064 in 2013 (a 111.26 percent increase).
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But according to ARIA, there are plenty of positives to be gleaned from the 2014 figures, most notably the success of homegrown artists. 2014 saw 16 Australian singles and albums soar to the top of the ARIA charts, though as Tone Deaf previously reported, no Australian artist albums managed to go platinum.
“The remarkable success of Australian artists in 2014 is exciting news for the future as the music from our home-grown talent is enjoyed by music fans here and around the world,” said ARIA CEO Dan Rosen. “As the industry continues to transform itself, we remain committed to embrace our digital future.”
“Our goal as an industry is to make it easier for music fans to support the artists they love by developing innovative new ways to sell music,” Rosen added. “The continued growth in the subscription market shows that the local music industry is leading the way in streaming digital content.”
“It is an exciting time, as the consumption of music grows through an ever-expanding range of options – whether through subscription services, digital downloads or visiting the local record store to buy vinyl.” The report concluded by looking to the year ahead, promising releases from the likes of Kanye West, Kendrick Lamar, and more.
Source: ARIA
