ARIA Releases Wholesale Figures For 2011
The Australian Recording Industry Association (ARIA) has released its figures for 2011, which show that Australian music fans continue to embrace digital music services. Digital sales now make up 36.7% of the industry’s value, compared to 27.2% last year, mirroring the increasing trend of digital music consumption internationally.
Australians adopted the ever-increasing number of legal digital music offerings available in 2011, as digital sales grew in number by 36.7%, with digital track sales increasing by 39.2% and digital albums up 45.9% on 2010. Further growth in the digital market is expected in 2012, with a number of new music subscription services likely to enter the Australian streaming market, including Spotify, Deezer and Rdio, joining existing services from JB Hi Fi and Samsung offering music consumers even more choice in how they consume, buy and listen to music.
Whilst these numbers are a welcome improvement on previous years, the impact of online piracy continues to be felt across the industry. The current overall industry value of $382.7 million is a drop of 27.5% on the $528.2 million generated in 2005. Figures recently released by IFPI*, show that one in four internet users access unauthorised services on a monthly basis, costing the recorded music industry potential sales and revenues.
Dan Rosen, ARIA CEO, said “2011 was an extremely positive year for our industry and we enter 2012 with a great deal of momentum on all fronts. There were a whole range of fantastic releases by artists both here and abroad and the array of options by which music fans could listen to, consume and purchase music grew exponentially.”
“While as an industry we are doing all we can to embrace the digital media landscape by offering music fans more options than ever before to get their music legally online, we require urgent assistance in the fight against the negative impact of illegal online piracy. We will continue our fight to protect the rights of artists and labels, ensuring money flows back for their creative work and to the grassroots of the music industry. We will work in good faith with the Government and ISPs for practical progress in the coming year.”
In 2011 physical music sales were down 13.8% on 2010 figures, although still accounting for $242 million dollars worth of revenue for the industry, further emphasising the important role physical music and retail continues to play in the music buying experience of consumers.
One area of growth for the industry in 2011 was the 20.5% increase on 2010 in the quantity of units sold, highlighting the fact that Australian music fans appetite for quality music is greater than ever before. The industry is confident of building on the momentum generated in 2011, with a number of big local releases expected in 2012 by the likes of Hilltop Hoods, Ladyhawke, Lisa Mitchell, Delta Goodrem, Guy Sebastian, Reece Mastin, Tame Impala, Empire of the Sun, Birds of Tokyo, Something For Kate, The Temper Trap, Sia and Parkway Drive (DVD). While international releases expected in 2012 include Usher, Bruce Springsteen, Muse, Linkin Park, Mumford & Suns, Madonna, Norah Jones and The Beach Boys.
Denis Handlin AM, ARIA Chairman & CEO of Sony Music Entertainment Australia & New Zealand and President Asia said, “Australian music fans continue to be some of the most passionate and knowledgeable in the world and demand for music has never been greater, which is reflected in today’s figures. Overall 2011 was a very positive year for our industry, with growth in a number of areas, a host of exciting new releases and a wonderful anniversary celebration at our 25th ARIA Awards.”
Source: Aria
