Face the music: Declines continue despite online music creating new revenue streams

The Music Publishing and Sound Recording industry has endured challenging conditions over the past five years, which have constrained revenue growth. Technological change has affected the industry's performance. High-speed internet connections have shifted consumer preferences towards online music formats, including streaming platforms, online stores, subscription-based services, and smartphone and tablet applications. This shift has increased demand and created new revenue sources, but has simultaneously introduced problems for industry players. Physical music sales have declined significantly and online music piracy has become more prevalent. As a result, industry revenue is estimated to decline at an annualised 1.1% over the five years through 2016-17, to $696.3 million...read more.

Industry Statistics & Market Size
Revenue
$696m
Annual Growth 12-17
-1.1%
Forecast Growth 17-22
Profit
Employment
1,204
Businesses
1,495

Industry Threats & Opportunities

  • High-speed internet connections have shifted consumer preferences towards online music formats
  • Online services have created new revenue streams, but have intensified industry competition
  • Revenue from licences sold to TV, film and online content providers will remain crucial
  • Industry Report - Industry Locations Chapter

    The geographic distribution of enterprises in the industry is heavily skewed towards New South Wales. In 2016-17, over 45% of firms are located in New South Wales. Opportunities for upcoming artists and composers tend to be most prevalent in New South Wales, with a large number of recording studios based in this state. In addition, New South Wales accounts for the largest proportion of the Australian population, which boosts the number of industry operators.Victoria and Queensland represent the next most concentrated states. The eastern states of Australia are the most populated and have the largest business areas, which explains the presence of a nearly 90% of total enterprises in these states. The remaining companies are spread across Australia's other states and territories. The...purchase to read more.

    Additional Insights for the Music Publishing and Sound Recording Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Music Publishing and Sound Recording Industry are

  • Ability to alter goods and services produced in favour of market conditions
  • Access to high quality inputs
  • Having a clear market position
  • IBISWorld analysts also discuss how external factors such as Demand from video game, dvd and recorded music retailing and Real household discretionary income in the Music Publishing and Sound Recording industry impact industry performance..

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    What's in this report

    What is the Music Publishing and Sound Recording Industry?

    Industry companies primarily acquire and register copyrights for musical compositions and authorise the use of these compositions on a range of platforms including radio broadcasts, television programs, films, live performances and online formats. The industry also includes companies that produce original master recordings and complete other sound recording activities.

    Industry Products
  • Media licensing
  • Cover and sample licensing
  • Infringement protection
  • Sound recording
  • Other services
  • Industry Activities
  • Authorising the use of copyrighted musical compositions
  • Music book publishing
  • Music copyright buying and selling
  • Music publishing
  • Sheet music publishing
  • Song publishing
  • Record production and distribution
  • Post-production sound recording services
  • Sound recording studio operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from video game, dvd and recorded music retailing
  • Real household discretionary income
  • Demand from motion picture and video production
  • Internet connections
  • Business confidence index

  • Current Performance
  • Revenue and profitability
  • Online content
  • Piracy plagues performance
  • Industry changes
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Online content
  • Piracy plagues performance
  • Table: Music Publishing and Sound Recording Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Music Publishing and Sound Recording Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Motion Picture and Video Production
  • Radio Broadcasting
  • Free-to-Air Television Broadcasting
  • Pay Television
  • Advertising Agencies

  • Key Selling Industries
  • Audio Visual Electronic Equipment Manufacturing
  • Industry Associations
  • Legal Services
  • Telecommunications Services

  • Products & Services
  • Media licensing
  • Sound recording
  • Cover and sample licensing
  • Infringement protection
  • Other services
  • Chart: Music Publishing and Sound Recording Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Film, television and radio producers
  • Other music producers
  • Advertisers
  • Online music platforms
  • Households and businesses
  • Other markets
  • Chart: Major Market Segmentation for the Music Publishing and Sound Recording Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Music Publishing and Sound Recording

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Music Publishing and Sound Recording Industry

  • Industry Globalization
    Centenary Australia Pty Limited, SBME Holdings (Australia) Pty Limited, Warner Music Australia Pty Limited,
  • Table: Centenary Australia Pty Limited - financial performance
  • Table: SBME Holdings (Australia) Pty Limited - financial performance
  • Table: Warner Music Australia Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Music Publishing and Sound Recording Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Music Publishing and Sound Recording Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Broadcast Licence
  • A licence that allows purchasers to broadcast music across a range of platforms, including film, television, radio and online formats.
  • Piracy
  • Music piracy is the process of copying and distributing a copyrighted musical composition without the consent of the artist or publishing company.
  • Synchronisation Licence
  • A licence granted by the copyright holder that allows musical compositions to be synchronised with visual content.
  • Torrent
  • A file, such as a song or album, which can be accessed illegally online.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Music Publishing and Sound Recording market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
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    This report on Music Publishing and Sound Recording:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Music Publishing and Sound Recording market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Music Publishing and Sound Recording, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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