Australian Music Industry Posts Seventh Year of Growth, Hits $727M in 2025

Australia’s recorded music industry has notched its seventh straight year of growth, though momentum is beginning to stabilise as streaming reaches maturity, according to new figures released by ARIA.

Wholesale sales rose 1.4% in 2025 to $727 million, marking a continued - if slower - expansion across both digital and physical formats. The tempered growth mirrors trends seen in other established markets such as the UK and Europe, where subscriber growth for streaming services is beginning to plateau.

While digital still dominates the market, physical formats delivered the strongest gains. Revenue from physical music jumped 11% year-on-year to $67.9 million, driven largely by a resurgence in CD sales. CD revenue climbed 29.6% to $21 million - its highest point since 2021 - with more than 1.5 million units sold. Vinyl continued its steady performance, growing 4.1% to $46.3 million and accounting for more than two-thirds of all physical revenue.

Streaming remains the backbone of the Australian market, however, with subscription services generating $517 million and representing 71% of total revenue. Ad-supported and video streaming added a further $130 million, while digital downloads continued their long-term decline, falling to $11.6 million. Overall, digital formats made up $659 million, or 90.7%, of total industry revenue.

ARIA CEO Annabelle Herd said the latest results reflect both the strength of audience demand and ongoing investment from labels, even as the market begins to mature.

“A seventh consecutive year of growth reflects the enduring connection Australians have with music, and the sustained investment of our record labels in developing and backing artists,” she said. “While the pace of growth eased last year as streaming markets mature, the surge in physical sales shows that fans want to engage with music in deeper, more tangible ways.”

Herd also pointed to the rapid rise of artificial intelligence as a defining issue for the global music business, noting both its potential and the need for stronger safeguards around artist rights.

“AI presents genuine new opportunities for the music industry… but these opportunities must be built on a foundation of consent, transparency, and fair compensation for artists and rights holders,” she said, adding that ARIA would continue to push back against any weakening of Australia’s copyright framework.

She also warned that breaking new Australian talent remains increasingly difficult in a crowded global market, despite recent international success stories. “Artists like Amyl and the Sniffers, Ninajirachi, Dom Dolla and Troye Sivan prove Australian artists can cut through anywhere in the world,” she said. “But earning a living as an artist has never been harder.”

Herd reiterated ARIA’s calls for policy reform, including the removal of the long-standing 1% cap and ABC fixed pricing model on radio royalties, arguing that changes would better support local artists and signal stronger backing for Australian music at home. Looking ahead, she said ARIA's priorities remain focused on growing audiences for Australian music, advocating for artists and rights holders, and strengthening the local industry as it navigates an increasingly complex global landscape.