Music Revenue Sources More Diversified than Ever
12 March, 2015
SOURCES MORE DIVERSIFIED THAN
Recorded Music NZ releases wholesale figures for 2014
• Income sources
are now more diversified with four income sources: physical
product downloads, streaming, public performance and
• Streaming continues to experience rapid growth and now represents 24 per cent of all recorded music wholesale revenues by format.
• Digital music now makes up 60 per cent of revenues by format.
• Vinyl album sales up more than 200 per cent on 2013 making up slightly more than $1million of revenue by format.
• Public performance and broadcast experiencing steady gradual growth year on year.
• Physical products and digital downloads remain very important revenue streams contributing $21.4million and $19.1million respectively in 2014.
Recorded Music NZ today (12 March) released its wholesale revenue figures for the New Zealand recorded music industry in 2014 and it proved another massive growth year for streaming services.
Public awareness and uptake of streaming services within NZ has grown significantly with streaming as a format claiming 15 per cent more of the overall revenue pie this year.
On the whole, digital music services still remain the number one source of revenue for rights owners accounting for 60 per cent of all music sales by format, leaving physical music products accounting for the remaining 40 per cent of the market.
Despite the increase in streaming revenue, overall income sources for record companies and recording artists are now far more diversified with four distinct income streams.
the split was:
• Physical product, generating $21.4million
• Digital downloads, generating $19.1million
• Streaming, generating $12.7million
• Public performance and Broadcast, generating $13million
Recorded Music NZ CEO Damian Vaughan says the diversification of revenue sources reflects the diversification of audiences and the way they consume music.
“This year more than ever we have seen revenue spread near equally across multiple and very diverse sources,” Vaughan says
“This is a direct result of fans’ ability to purchase and listen to their favourite songs in so many new varied ways – from streaming and downloads to the local record store. That makes it more important than ever for record companies and recording artists to understand who their audience is, where they are and how they are consuming music.
“We really are spoilt for choice when it comes to our options in NZ and our artists have the ability now to reach their fans in a more meaningful and targeted way.”
Further information regarding the legal music and download services available to New Zealanders can be found at www.promusic.co.nz
Overall, in 2014 the NZ Recorded Music industry saw a slight decrease of just 0.8% per cent in annual recorded music revenues.
Recorded Music NZ has previously released its end-of-year NZ Top 40 Charts results for 2014 which are summarised below.
2014 Album and Singles Charts
|2014 Top Selling Singles|
|2||All About That Bass||Megan Trainor|
|3||All Of Me||John Legend|
|4||Stay With Me||Sam Smith|
|5||Shake It Off||Taylor Swift|
|6||I See Fire||Ed Sheeran|
|7||Say Something||A Great Big World feat. Christina Aguilera|
|8||Thinking Out Loud||Ed Sheeran|
|9||We Are Done||The Madden Brothers|
|2014 Top Selling Albums|
|2||Sol3 Mio||Sol3 Mio|
|4||In The Lonely Hour||Sam Smith|
|5||Frozen: The Songs||Various|
|9||The Endless River||Pink Floyd|
|2014 Top Selling NZ Singles|
|1||Freaks||Timmy Trumpet and Savage|
|2||Holding You||Ginny Blackmore and Stan Walker|
|5||Yellow Flicker Beat||Lorde|
|6||Mother & Father||Broods|
|8||Make You Mine||Benny Tipene|
|9||The Wire||David Dallas feat. Ruby Frost|
|2014 Top Selling NZ Albums|
|1||Sol3 Mio||Sol3 Mio|
|7||The Soul Sessions||Whenua Patuwai|
|8||Words: The Very Best Of||Sharon O’Neill|
|10||Science & Survival||I Am Giant|