For the third year in a row the New Zealand music industry has experienced double digit percentage growth with wholesale revenue growing by 14.6% in 2017 to NZ$98.8m driven largely by New Zealand’s ever-increasing adoption and use of music streaming services, according to new figures released by record industry association Recorded Music NZ.
Wholesale revenue from streaming in 2017 was $61.3m, a 41.6% increase on 2016. Last year’s streaming revenue is almost as large as the industry’s total wholesale revenue three years ago (NZ$66.2m in 2014).
This strong growth highlights the unprecedented growth and uptake of services such as Spotify and Apple Music in New Zealand.
Digital now accounts for more than 70% of music consumption locally.
Physical music sales declined again in 2017 contributing NZ$14.5m to overall revenue. Vinyl continues to make a comeback with purchases growing to NZ$2.8m, a 9% increase on 2016.
Recorded Music NZ’s collective licensing income derived from the broadcast of music on radio and television, and the licensing of businesses who publicly perform music at their premises also increased moderately by 4% to NZ$14.8m.
“Last year’s figures are certainly very positive and encouraging for the local industry. However, NZ$98.8m is still approximately 30% below the peak in wholesale music revenue the country used to see more than a decade ago after enduring a period of sustained market disruption and digital piracy in its many forms,” says Recorded Music NZ CEO Damian Vaughan.
Stream ripping continues to be an issue for New Zealand rights holders as does the value gap created by certain platforms who are able to take advantage of safe harbour provisions in the NZ Copyright Act which were intended for ISPs only.
“It is clear that music is a growing and thriving sector and to build on this momentum in 2018 Recorded Music NZ will ensure copyright which is the foundation of music, is front and centre with our legislators as we proceed through the review of the NZ Copyright Act,” says Vaughan.
