Australian music streaming market

Maturing subscription growth and strategic price increases shift the market toward a reliably profitable position.

David Kennedy · Venture Insights14 June 2024Period: FY23-FY284 min read

Last updated 6 May 2026

$3,211M↑

Total music streaming industry revenue (FY28)

10.6%↑

Subscription revenue CAGR (FY23-FY28)

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Abstract

This report forecasts the Australian music streaming industry’s online revenues. The market, once fragmented, is now dominated by Spotify, Apple Music, Amazon Music, and YouTube Music. With maturing subscription growth, major operators have increased prices, sustaining revenue expansion. Between FY23 and FY28, the industry is projected to grow subscription revenue at 10.6%, when it will finally account for 94% of industry revenues. Advertising revenues are also expected to grow at 6.9% and will comprise the balance of total industry revenues.

Key Takeaways

Total Australian music streaming revenue is forecast to reach $3,211 million by FY28, growing at a 10.4% CAGR.
Subscription revenue will dominate the market, accounting for 94% of total industry revenues by FY28.
Industry ARPU is projected to rise significantly from $11.75 in FY23 to $16.03 in FY28 due to aggressive price increases.

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Frequently Asked Questions

The market remains a high-growth sector with total revenue forecast to reach $3,211 million by FY28, representing a 10.4% CAGR. While user acquisition is maturing, revenue expansion is being sustained by aggressive pricing strategies rather than simple volume gains.

Operators are successfully pivoting to price-led growth, which will drive industry ARPU from $11.75 in FY23 to $16.03 by FY28. This shift ensures that subscription revenue will dominate the landscape, accounting for 94% of all industry earnings by the end of the forecast period.

Spotify is consolidating its lead and is expected to grow its revenue market share from 57% to 68% by FY28. In contrast, YouTube Music is losing momentum, with its share projected to decline from 17% to 13% over the same period.

Advertising is becoming a secondary revenue stream, with its total market share expected to slip from 7% to 6% by FY28. Although advertising revenue will grow at a 6.9% CAGR to reach $183 million, it is being significantly outpaced by the 10.6% growth seen in paid subscriptions.

Abstract

Key Takeaways

Total Australian music streaming revenue is forecast to reach $3,211 million by FY28, growing at a 10.4% CAGR.

Subscription revenue will dominate the market, accounting for 94% of total industry revenues by FY28.

Industry ARPU is projected to rise significantly from $11.75 in FY23 to $16.03 in FY28 due to aggressive price increases.

Frequently Asked Questions

Abstract

Key Takeaways

Frequently Asked Questions

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