Breaking Biz

A new dawn, or just a ray of light

It’s too early to celebrate, but the recorded music industry does appear to be finally climbing out of the darkness. ARIA last week reported the Australian record biz enjoyed growth of 5.5% in 2016, following a gain of 5% in 2015, with the budding streaming sector leading the way.

Total revenue climbed to A$352.2 million with income from streaming products growing by 90% year-on-year to A$135 million, or 38% of the big pie.

But wait, there’s more. Just days later, the RIAA announced recorded music revenue in the U.S., the world’s biggest record market, topped US$7.65 billion in 2016, a rise of 11.4 percent…just the first time double-digit growth had been reported in nearly 20 years. And the big star in all this? Streaming. And what a stellar story it was. Revenue from streaming grew by 68.5 percent to US$3.93 billion and the format is now the leading driver in the market stateside. These are welcome figures for an industry that for so many years was stuck in a downward spiral.  Consider these numbers: in 2000, the IFPI reported the global recorded music biz was worth US$36.9 billion. In 2015, the comparative figure was $15 billion.

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