Online music piracy and digital streaming services have reduced industry revenue.
Melbourne, Australia (PRWEB) September 09, 2013
Over the past five years, the Music Publishing industry has endured changing market conditions as technological change has affected performance and industry markets. IBISWorld industry analyst Lauren Magner states “the advent of high-speed internet connections has resulted in consumer preferences trending towards online formats. This includes the rise of websites and online subscription services providing music streaming to consumers.” This has provided a shift in demand and new revenue sources for the industry, but has simultaneously created new problems as online piracy has become prolific. The industry has also suffered due to lower discretionary spending following the global financial crisis, which has limited growth over the past five years. Revenue is expected to grow at an annualised 1.2% over the five years through 2013-14, to total $497.3 million. There has been considerable consolidation in the industry over the past five years, most notably the purchase of EMI Music by Universal Music Group for $1.9 billion, which resulted in a large increase in market share for Centenary Australia (parent company of Universal Music Australia). Over the five-year period, enterprises are expected to grow at a compound annual rate of 1.7%, as small independent labels entered the industry. Establishments are expected to grow in line with the increase in enterprises.
According to Magner, “advances in technology have led to many musicians and composers recording and publishing their own music without the need to engage the services of industry participants.” This new software allows smaller artists to take greater control of their music and retain royalties. This trend is expected to contribute to a decline in revenue of 0.7% in 2013-14.
The Music Publishing industry is characterised by a moderate level of market share concentration. Centenary Australia is the largest player in the industry and has significantly increased its reach after Universal Music Group purchased EMI Music for $1.9 billion. The deal was made at the international level and Centenary Australia, parent company of Universal Music Australia, is expected to take on EMI Group's revenue. The major takeover attracted some criticism after the ACCC allowed the acquisition, with some claiming it would drastically reduce competition. The industry's major players are Centenary Australia, SBME Holdings, Warner Music Australia and Regency Media. Market share concentration is expected to fall over the next five years as large companies lose revenue to small companies and individual artists that act independently. For more information, visit IBISWorld’s Music Publishing report in Australia industry page.
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IBISWorld industry Report Key Topics
Firms in this industry are engaged in acquiring and registering copyrights for musical compositions and authorising the use of such compositions in radio, television, films, live performances and online formats such as streaming websites and online stores. The industry also includes firms that are engaged in music and other sound recording activities, such as mastering recordings for tapes and CDs and releasing recordings to wholesalers, retailers or directly to the public.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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