Domestic Music Market Continues to Boom

The main driver of this growth is the streaming sector, which, according to the figures released today by the music industry association IFPI, generated 185.8 million euros - an increase of 10.9 percent. But not only digitally, there was also growth in analog formats, with vinyl sales almost catching up to CDs.

Streaming thus accounts for 85.1 percent of the total market. Among physical formats, CDs still hold a slight lead with 14.5 million euros (down 18.5 percent), but vinyl records continue their trend from recent years, reaching 13.1 million euros in 2024, which represents a growth of 6.5 percent. It is expected that next year vinyl will take the lead, said IFPI Managing Director Franz Medwenitsch to the APA. "Currently, however, the CD remains the second strongest sound carrier."

That there is still much potential in streaming is shown by looking at other markets in Europe: In Austria, around 35 percent of all households now have a music streaming subscription, while in Scandinavian countries, market penetration is around 80 percent. "We have a lot of growth potential," emphasizes Medwenitsch. "There is nothing against it."

There was also a record last year in the number of songs streamed: Domestic consumers accessed 21.1 billion songs on platforms like Spotify, Apple, or Tidal. For comparison: two years earlier, this number was 14.8 billion songs. For music acts, these platforms are both an opportunity and a challenge, as around 100,000 new songs are uploaded daily on Spotify alone. According to Medwenitsch, streaming has also resulted in "a great democratization."

To ultimately earn something from song streams, a correspondingly high quantity is needed. Therefore, it cannot be compared to CD sales, emphasizes the IFPI Managing Director. Nevertheless, the earnings for artists today are higher than in the best CD years, such as in the early 2000s when more than 20 million CDs were sold in Austria.

The total revenue is completed by downloads (3.4 million euros), DVDs (1.1 million euros), license income through the collecting society LSG (up 2.5 percent to 33.3 million euros), as well as synchronization rights, meaning the income from licensing music for films, series, or advertising. These grew by 60 percent to 2.4 million euros. However, there are always larger fluctuations depending on the market, explained Medwenitsch. The diversity of the revenue structure is nevertheless a central asset for the music industry.

There was an appeal to the future federal government regarding the music fund: It is currently endowed with around 2.2 million euros and supports local artists in producing new songs. In fact, an additional 5 to 7 million euros would be needed. However, there is hope that a new government "recognizes the opportunity of the topic," said Medwenitsch. "A big lever can be created here, you just have to set the flywheel in motion," as greater value creation is also to be expected subsequently. They want to continue advocating for this. "We hope that the Amadeus Austrian Music Award also ensures that we are seen," referred IFPI President Franz Pleterski to the big gala on March 7 in the Vienna Marx Halle. "We are not an industry that needs to hide."

The album charts of the past year are dominated by US superstar Taylor Swift - she placed five albums in the Top 10. Besides her, Billie Eilish, Linkin Park, Travis Scott, Coldplay, and Lana Del Rey also made it to the top positions. The most popular song was delivered by Benson Boone with "Beautiful Things," with Artemas ("I Like The Way You Kiss Me") and Cyril ("Stumblin' In") also landing on the podium.

The most successful Austrian acts in the albums category were the Nockis ("Gefühlsecht"), followed by Wanda ("Ende Nie") and the Vienna Philharmonic under Christian Thielemann with the "New Year's Concert" as a perennial favorite. In the songs category, rapper RAF Camora together with Ski Aggu ("Liebe Grüße") took the lead. They were followed by Aut Of Orda ("Fix net normal") and Wanda ("No one else's").

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