Music industry records second straight year of growth

Music industry records second straight year of growth

Recorded Music NZ releases 2016 wholesale figures

After 15 years in decline, the New Zealand music industry has recorded back-to-back years of double digit growth. Wholesale figures released today by Recorded Music NZ state total revenues for the local music industry increased by 16 per cent to $86,198,000 in 2016, a further improvement on the 12 per cent growth in 2015.

Streaming continued its incredible ascendency as the number one medium for music consumption in New Zealand generating 50 per cent of the total industry revenues.

Recorded Music NZ CEO Damian Vaughan says streaming has revitalised and reenergised the industry which has weathered substantial change over the last two decades.

“We’re delighted to see continued industry growth in 2016 thanks largely to the unprecedented rise of streaming which generated more than $40 million in 2016, up a remarkable 169 per cent from 2015. Streaming services have emerged and thrived in NZ, giving consumers even more choice as to accessing and enjoying music in the digital age."

Recorded Music NZ’s statistics also show public performance and broadcast revenues are up four per cent to $14,200,000. Downloads and physical product continue their decline, however they still contribute meaningful income to the local industry at $10,972,000 and $17,700,000 respectively in 2016.

“It’s clear that consumers still enjoy purchasing music in a physical form. We’ve particularly noticed a surge in the purchases of vinyl which contributed 14 per cent of all physical sales in 2016 and its revenue has grown from $1.6 million in 2015 to $2.5 million in 2016,” says Vaughan.

“We’re looking forward to building on this momentum in 2017 and beyond, both here and internationally. In 2016 we had a record equalling 8 number one kiwi albums, and a growing number of artists making their impact throughout the world. It is truly an exciting time for our industry and 2017 will be another outstanding year for New Zealand music”.

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