Music News - Music Industry Returns to Growth in 2015
11 April 2016 - 1 Comment
The music industry in New Zealand has streamed its way in to growth.
Total wholesale revenues to the local industry grew 12 per cent in 2015 to $74.4m, the first positive growth in 15 years indicative of an industry that has embraced and adapted to the digital age.
Recorded Music NZ CEO Damian Vaughan says, “It is a great first step towards a more positive future for recording artists and record companies in NZ. The popularity of music streaming has aided industry growth enormously and our industry is determined to build on the momentum.
“However, while it is very encouraging that we have returned to growth, our industry has spent 15 years fighting the impacts and losses largely due to piracy estimated to be upwards of $1.5 billion (GDP adjusted),” Vaughan says.
“That’s why it is essential that copyright laws are strengthened and not diluted in any way. If we are to maintain and encourage this new momentum we must ensure New Zealand law is world class and ensures a level playing field for artists and recording companies.”
In 2015 streaming revenues became the number one source of revenue for record companies and recording artists in NZ and contributed significantly towards the overall industry growth.
“Streaming services are still relatively new in NZ but have quickly established themselves and are now the preferred method of music consumption by Kiwis,” Vaughan says.
Recorded Music NZ figures show streaming now represents $25.7m of all recorded music wholesale revenues by format which is a 200 per cent increase on 2014.
The collective licensing revenue generated by Recorded Music NZ via public performance and broadcasting experienced six per cent growth in 2015.
Conversely, both digital downloads and physical product recorded declines (18 per cent and 10 per cent respectively) but remain very important revenue streams to the industry, Vaughan says.
The four key income sources represent the following percentages to the industry
- Streaming $25.7m, 35 per cent
- Downloads $15.7m, 21 per cent
- Physical Product $19.3m, 26 per cent
- Public Performance and Broadcast $13.7m, 18 per cent
Of special note are Vinyl sales which have continued their resurgence in popularity. While a relatively small contributor to the overall numbers, Vinyl sales have increased again to $1.7m of revenue, representing nine per cent of all physical sales
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"We're really excited (and proud) to see such amazing results for streaming and the industry this year. In the four years since Spotify launched in New Zealand, we've amassed almost 550,000 monthly active users*, and boast one of the highest Premium conversions rates of any Spotify market in the world.
It's really encouraging to see how these successes, thanks in big part to our very successful partnership with Spark, have correlated into real results for the local music industry - the future looks very bright!" - Kate Vale, Managing Director Spotify Australia & New Zealand.
(*Report by leading marketing data and analytics company comScore December 2015. For further information on this study please get in touch).