Via: Yahoo Music
With CD sales falling at an alarming rate to make money the music industry had to diversify and it seems to be paying off. This is the same all over the world not just America. In New Zealand 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.
In 2014 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 favorite 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.
Via: Yahoo Music