Australian music streaming market still growing

Major operators leverage price increases and podcasting to sustain revenue expansion in a maturing Australian market.

David Kennedy · Venture Insights14 June 2024Period: FY244 min read

Last updated 6 May 2026

10.6%↑

Subscription revenue CAGR (FY23-FY28)

$16.03↑

Projected industry-wide music streaming ARPU (FY28)

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Abstract

This report analyses the Australian music streaming market, forecasting a shift from subscriber acquisition to price-driven revenue growth. While the market has consolidated around global giants like Spotify and Apple Music, maturing subscription rates have prompted operators to implement significant price hikes. The industry is projected to reach a subscription revenue CAGR of 10.6% through FY28, with Spotify expected to dominate 68% of the revenue share. The analysis explores how these trends impact profitability and artist remuneration.

Key Takeaways

The Australian music streaming market is shifting toward a price-driven growth model as subscriber acquisition matures at a 3.8% CAGR.
Subscription revenue is forecast to grow at a 10.6% CAGR through FY28, eventually accounting for 94% of total industry revenue.
Industry ARPU is expected to jump 9.5% CAGR across FY24-25 to reach $14.09, driven by aggressive price hikes from major operators.

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Frequently Asked Questions

Subscriber acquisition is maturing, with paid user growth slowing to a 3.8% CAGR through FY28. However, the market is successfully pivoting to a price-driven growth model, with subscription revenue forecast to expand at a robust 10.6% CAGR over the same period.

Music streaming demonstrates significantly higher subscriber loyalty than SVOD services, with aggressive price increases failing to trigger meaningful churn. Industry ARPU is projected to jump at a 9.5% CAGR across FY24-25, reaching $14.09 as consumers prioritize music access over cost savings.

Spotify is rapidly consolidating the market, with its revenue share expected to rise from 57% in FY23 to 68% by FY28. In contrast, YouTube Music is losing relevance, with its share forecast to decline from 17% to 13% due to higher comparative costs and usability challenges.

Abstract

Key Takeaways

The Australian music streaming market is shifting toward a price-driven growth model as subscriber acquisition matures at a 3.8% CAGR.

Subscription revenue is forecast to grow at a 10.6% CAGR through FY28, eventually accounting for 94% of total industry revenue.

Industry ARPU is expected to jump 9.5% CAGR across FY24-25 to reach $14.09, driven by aggressive price hikes from major operators.

Frequently Asked Questions

Abstract

Key Takeaways

Frequently Asked Questions

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