The music publishing and sound recording industry in Australia has a $961 million revenue with 1644 businesses, forecasted to continue growing over the next five years at an annualised 1.9 percent through 2025 to 2026 to $1.1 billion.
SBME Holdings Pty Limited and Centenary Australia Pty Limited are the major companies of the Australian sound recording and music publishing sector. Sony Music Entertainment is the leading brand of SBME Holdings and Universal Music Australia for Centenary Australia Pty Limited.
As shown below, ‘other’ entertainment companies lead with a higher revenue of 54.1 percent. There is a 23.1 percent difference between Universal and Sony Music.
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IBISWorld reports only an increase for Centenary Australia Pty Limited market share starting with 20.9 percent in 2010 and increasing to 34.5 percent in 2021. On the other hand, SBME Holdings situates with a significantly low percentage starting with 14 percent in 2010, decreasing to 11.4 percent by 2021.
As shown in the visual, SMBE was unable to expand beyond 14.3 percent.
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IBISWorld reported the industries anticipated fall by 1.3 percent in 2020 to 2021, attributed by the economic disruption caused by the COVID-19 pandemic.
The downstream demand has been negatively affected.
Nevertheless, the past five years has seen a strong demand growth for streaming services, helping support the industries profitability.
According to the Guardian’s article, ‘Change the tune: how the pandemic affected the music industry’, Spotify unexpectedly collapsed as “streams of the world’s biggest charts were actually down 11 per cent” due to the impact of COVID-19 on the music industry in 2020.
Lockdowns meant there was no commute to work to stream music or whilst sprinting on the treadmill in the gym. Venues no longer needed to play recorded music either.
However, Spotify streams have rapidly grown as well as Apple Music.
Streaming service subscribers have helped drive the industry revenue growth as highlighted in the graph. Spotify is the clear market leader having 165 million subscribers in 2020 worldwide. 10.5 million of those being Australians as discovered by the Australian technology insight company, Telsyte.
As of 2020, Apple Music holds 72 million users.
Amazon Music significantly falls behind with only 55 million users in 2020.
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A 2020 June report released by marketing research company, Roy Morgan has revealed industry changes in streaming service users for Australians which reads currently 61 percent use streaming services in an average of four weeks. That is over a 3.7 million increase from 2017.
Since 2017, Spotify has doubled its Australian user-base by 4.4 million.
Overall, the pandemic has altered the industries performance but the rising popularity of online music streaming services helped the revenue.
(Feature Image: ALEXANDRA MARCOCCI).
