Australia Music Market Size, Share and Growth Analysis Report: Forecast Trends and Outlook (2024-2032)

Australia Music Market Trends

The trend for the Australian music market was the growth of niche genres; electronic and experimental genres really stood out. With unique sounds, festivals and other events began to focus more on subgenres like ambient, lo-fi, and techno. Festivals such as "Beyond the Valley" bring emerging electronic artists into the limelight and give birth to a culture of these subgenres, thus shaping new trends in the Australia music market. This trend allows for experimentation with new sounds as artists engage with niches, hence giving them devoted followings. As such, niche playlists promoted by the stream services are contributing to making this landscape of musical styles very rich and diversified.

Australia Music Market Growth

Diversity and inclusiveness in the industry is one of the main factors influencing the Australian music market. This diversity makes the industry more inclusive for artists from different backgrounds, bringing more diverse artists into the game, which has made music richer and more appealing to a wider audience. An apt example for this would be Kid LAROI and Tones and I, with their diverse cultural backgrounds achieving international success, making Australia's music a global issue. In addition, programs like "First Nations Music Industry Development Program" promote Indigenous artists, providing resources and opportunities for cultural expression, propelling the growth of the Australia music market. This commitment to diversity not only enhances the creative landscape but also fosters community support and engagement, thereby driving growth in the music sector and making Australian music more relevant on the world stage.

Australia Music Market Insights

• The music reflects multi-cultures and a diverse array of genres, and styles. 
• According to the Australian Bureau of Statistics, digital media in Australia has increased from 5.1% in 2019-2020 to 5.3% in 2020-21, indicating substantial Australia music market growth. 
• This indicates the growth of digital activity which eventually increases internet users, highlighting the increasing usage of music streaming platforms.

Industry News

July 2023

The National Retail Association and the Australian Music Association announced their strategic partnership to support and represent retail industry members.

April 2022

Stingray, a leading music, media, and technology company announced that the Stingray All Good Vibes channels will be launched on Amazon’s Prime Video Channels.

Australia Music Market Drivers

Live music events and festivals drive growth by attracting audiences and supporting local economies.

One of the most significant factors propelling the Australia music demand growth have been live events, such as expanding festivals. As there is a renewed increase in the sector for live performances due to the need for more innovative immersive experiences, some local and international acts begin to attract bigger and even international crowds to splatter tourism. End. This trend brings in enormous revenues but gets more involved in community mobilisation and supports the economies. Audiences want actual experiences; therefore, it becomes easier for the sector to do well and thereby, an opportunity for its different elements, like the artist, the promoter, and the venue.

Opportunities in the Australia Music Market

Opportunities in Australia’s music market include investing in local talent and unique live experiences.

The Australian music industry offers a prominent opportunity to the key players, specifically in terms of digital streaming and live events. Rising popularity for local acts contributes to a thriving cultural lifestyle that keeps investment money flowing into the platforms toward local content. The shift in experiential consumption also makes the listeners pull toward unique live performance as well as exclusive content, thereby opening up new Australia music market opportunities. Collaborations between services for streaming and event companies may improve user engagement-a sort of symbiotic interrelation that benefits both areas of business. As tastes in music become more eclectic for many listeners, there is vast potential for innovation in all facets of how music delivery is experienced.

Market Dynamics

The music industry in Australia launched a new feature called "Artist Insights" in the music markets, including Spotify. This tool provides artists with real-time analytics of audience demographics, listening habits, and engagement levels, thus propelling the Australia music market dynamics and trends. In this manner, the artists can adjust their marketing strategies and communicate better with the fans while important data about how and where the artist's music is heard is provided. This feature can help an artist make decisions about touring, promotion, and release thereby building a more interactive relationship between the artists and their audience in Australia.

Market Restraints

One of the main drawbacks in the Australian music industry is piracy and downloading of music without its pay, contrary to the revenue accruing for artists and their record labels. With a huge inflow and resultant growth of streaming services, most consumers require free or unauthorised access to this music, which brings low sales of digital downloads and physical products, thereby resulting in Australia music market challenges. Moreover, the continued wave of the COVID-19 pandemic has affected live performances and festivals, further reducing revenue for venues and artists. All of these result in inhibiting the music industry in Australia from attaining proper growth and sustainability.

Australia Music Industry Segmentation

The EMR’s report titled “Australia Music Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Revenue Generation Format

• Streaming
• Digital (Except Streaming)
• Physical Products
• Performance Rights
• Synchronisation Revenues
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Music Market Share

By Revenue Generation Format Analysis

Streaming, digital sales, performance rights, and synchronisation revenues significantly boost Australia's music market.

In the Australian music market, streaming is the dominant revenue generator, significantly boosting overall earnings as platforms like Spotify and Apple Music attract millions of subscribers. Like with streaming, physical products are decreasing but still fill a niche in being a market for collectors and enthusiasts. As per Australia music market analysis, performance rights generate income for artists through live performances, which is picking up at festivals and concerts following the pandemic. Then there is the sync licensing payments, or placement fees from using music in movies, TV programs, and commercials-again, a lucrative source of diversified income and market performance to drive growth.

Australia Music Market Regional Insights

New South Wales Music Market Regional Insights

New South Wales has a very diverse mix of music genres and a very diverse live music market where many bands perform, aiding the Australia music demand growth. Major festivals, like the one held in Sydney, have been Vivid Sydney, where various domestic and international artists share the bill, thereby significantly promoting the city's economy. Revenue from live music events exceeds AUD 200 million in 2022. Digital music streaming companies, such as Apple Music, have also changed how audiences enjoy music, further enriching the dynamic music environment of the region.

Victoria Music Market Analysis

The Victoria music industry is also as vibrant, generating more than AUD 500 million for the state's economy last year, according to Music Victoria. Another characteristic of the region is keen live music with Melbourne City being considered Australia's live music capital, hosting over 10,000 performances per year. Digital streaming services have also dramatically changed consumption patterns, reports Spotify, with notable user growth in the region, thus bolstering the music market share in Victoria. These indicate that Victoria has a very dynamic music environment supported both by local excellence and favourable cultural society.

Queensland Music Market Trends

The music market in Queensland is on the rise with impressive trends such as increased local festivals and the overall take-up in digital streaming. Festivals such as the Bigsound Festival have a tendency to shed light on some emerging talent by pointing out the state's rich music culture. Moreover, with the increase in the popularity of these platforms, such as Spotify, listening trends have dramatically changed, and local artists will get to reach audiences easier. The momentum toward digital consumption, along with the continuous shows, indicates a vibrant and fluid music scene in Queensland.

Australian Capital Territory Music Market Drivers

With significant local talent and community engagement within the Australian Capital Territory, its music market is also booming. Government initiatives, including the ACT Arts Fund, have equally catered for the emerging artists and promoted cultural events in order to enhance local music markets, thus bolstering the music market in Australian Capital Territory. The Canberra Music Festival, for instance, showcases local artists and visitors to the city. For example, through these digital streaming channels, in addition to the already vast number of commercial music, artists can be performed to a larger audience. These are contributing factors to the vibrant music culture and growth in the ACT music market.

Western Australia Music Market Dynamics

A thriving local scene and rising demand for live performances have an impact on the Western Australia music market. In 2022, live music generated about AUD 80 million for the state's economy, according to the Australian Bureau of Statistics. Consumption patterns have also changed as a result of the rise of digital streaming; platforms such as Spotify have reported notable increases in their user base in the region. Initiatives that support regional performers and events, like the Perth Festival, also improve community involvement. These factors support a varied music ecology that propels Western Australia's economic development and cultural enrichment.

Competitive Landscape

Australia music market players in terms of pushing up their profits are leveraging digital streaming platforms so as to reach a wider market, localised talent, and live event offerings for higher engagement and generation of new revenue bases. Data analytics is also being invested in so as to understand listener preferences better and actually push targeted marketing strategies. Australia music companies are also collaborating with brands and merchandise sales to help diversify the portfolios of these companies to increase profitability while simultaneously maximising exposure and fan loyalty.

Key Industry Players

Sony Music Entertainment Australia Pty Limited

Sony Music Entertainment Australia Pty Limited, founded in 1929 and headquartered in the United States is a record label company and distributes video games.

BMG Rights Management GmbH

BMG Rights Management GmbH, founded in 2008 and headquartered in Germany, is a music recording company that combines publishing and recording under the same roof.

Universal Music Australia Pty Limited

Universal Music Australia Pty Limited, founded in 1934 and headquartered in the Netherlands, produces, and distributes music by identifying and developing artists and songwriters.

Warner Music Group

Warner Music Group was founded in 1958 and is headquartered in the United States, is an entertainment and record label that sells recorded music in various physical and digital formats.

Other Australia music market key players are Kobalt Music Group Limited, Apple Inc., and Wise Music Australia Pty Ltd, among others.

Recent Developments

October 2023

TikTok Music, a music streaming service by TikTok is available publicly in Australia without the music catalogue of Universal Music Group.

October 2023

Universal Production Music announced the launch of a new subscription model that provides music licensing services to content creators and online videos.