Australia's recorded music industry to grow by 10.9% to 2023

For the fifth consecutive year, Australia's recorded music industry growth in 2023 – all thanks to streaming and Aussies' love of wax.

According to wholesale figures released by ARIA, the label's trade association, the country's record market grew 10.9 percent to A$676 million ($442 million), thanks to subscriptions to music streaming brands.

This growth rate for Australia, a top 10 market, confirms the IFPI in its new publication World Music Fairis in line with international trends.

Spotify, Apple Music, YouTube Music, Tidal and the full range of subscription platforms now make up 69% of the industry's total value, or $US467.6 million ($305 million), up 13.9% from year on year, reports ARIA.

Also, earnings for 2023 report the space for ad-supported streaming models, up 15.3% to $68.3 million ($44 million).

All digital products combined, including downloads and video streams, accounted for more than A$616.1 million ($403 million), up 12% year-on-year. In other words, more than 90 cents on the record industry dollar is generated by digital.

Vinyl albums are a perennial sweet spot, gaining 14.1% to A$42.1 million ($27 million), more than double the declining market for CD albums ($17 million or $11 million, down 16 %), for decades a diesel engine of the recording industry. The growth rate for vinyl, however, appears to be slowing.

An overall strong market report hides a problem Australia's music community is desperately trying to solve — how to break more homegrown in Australia and overseas?

Where the IFPI's GMR combined with case studies on the success of Afrobeats, Latin music, K-pop and blockbusters from North America and the UK, projects from Down Under do not steal the limelight.

“While Australia remains the world's 10th largest music market – and Australians clearly love music,” comments ARIA CEO Annabelle Herd, “it remains harder than ever for our local artists to reach this audience.”

The ARIA year-end charts “paint a clear picture”, notes Herd, with only four Australian albums having influenced the 2023 top 100, topped by INXS's collection of hits The best (at No. 58), and three singles, none of which were released during the reporting period. Best Australian year-end singles artist was The Kid Laroi with his 2021 Justin Bieber collaboration 'Stay'.

“It's becoming increasingly difficult for artists to break even as the growth rate of subscription and ad-supported streaming models continues to grow year over year,” notes Herd, “while almost all other growth rates have declined compared to in 2022”.

The federal government of Albania listened to the industry's dilemmas and, in 2023, activated Creative Australia, the centerpiece of the federal National Cultural Policy, Resurrectwhich its architects hope will turn Australia into a music powerhouse.

Among the government's promises is the launch of Music Australia, a redesigned national music development agency that would support and invest in the development of Australian contemporary music, now led by founding director Millie Millgate. The Music Australia Council, effectively the governing board of Music Australia, includes legendary concert promoter Michael Chugg and Future Classics founder and CEO Nathan McLay.

Of the goverment National Cultural Policy is an ambitious one-year action plan structured around five interconnected pillars and supported by a commitment to new, additional investment totaling A$286 million (US$202 million) — record levels of funding for the arts. Music Australia alone is being funded with A$69 million ($44 million) over four years.

“We are fortunate that compared to other major global markets, our growth rates paint a favorable picture for the future of music in Australia,” adds Herd. “Music is valuable, it's popular and it's growing. We look forward to working with industry and government to ensure the message is heard and value is increasingly used to support our incredible local talent.”