Music Customers

Public Performance Licensing

Cash Flow Consciousness

Given the positive impact periodic payment options have had on the cash flow and budgeting of the fitness and nightclub industries, in February we extended quarterly invoicing to the majority of our music customers – clients with an annual public performance invoice of $500 or more. Now 65% of APRA AMCOS music customers are being invoiced quarterly.

Made By Music

“… creating a point of difference, a creative, boutique and intimate experience, will put us on the music map. We’re doing our thing to keep Aussie music live and give these artists somewhere to play.
Steve Doessel, Owner, Flow Bar

Flow Bar, a café in a NSW coastal town, has woven live music into every fabric of their business with our Unlimited Music Licence. Owners Steve Doessel and David Craig are self-confessed lovers of live music. Their bar/beach house/café/restaurant hosts live music every Friday and Sunday and up to six sold-out ticketed events throughout the year.

Spotlight On New Zealand

OneMusic

This year, public performance licensing revenue in New Zealand grew by 89% to $12.6 million thanks to OneMusic. A joint initiative of APRA AMCOS NZ and Recorded Music NZ, OneMusic provides a single licensing solution for music and recordings in New Zealand. This year, the organisation has gone from strength to strength. We've redefined our relationships with music customers, industry representatives, government and the media. Now OneMusic is seen as a more modern, customer-focused and responsive music licensing solution. OneMusic, in collaboration with the record industry, has provided a platform for revenue growth for both RMNZ and APRA AMCOS New Zealand.

““We like to play our part and have a positive effect on everyone that comes into contact with our business and that goes for music artists as well. If we are contributing to the music scene then we hope that will come back to us in the long run.”
Tim Guy, Head of Operations, Boardertown, OneMusic NZ licensee

Digital & Recorded Licensing

Joining music services and consumers

The overall revenue for Digital & Recorded Licensing increased by 15% year-on-year. Our revenue mix from recorded media continues its long-term shift from physical ownership to digital rental. This trend has seen significant growth from music subscription services, up 106%, at the expense of continuing declines in both CD and digital download sales. As a result, in New Zealand, we saw annual streaming revenue surpass digital sales revenue for the first time.


This year saw us renegotiate licence agreements with a number of online music services, which reflect the ongoing revaluation of music in the digital arena. Two new services entered the market, Samsung MILK and Apple Music. We believe we will see further growth across a number of streaming services on the back of increased marketing spend, increased branding collaboration and bundling music with other services.


The education sector has increased in revenue by 20% and now generates $14 million in revenue. We continue to work with relevant peak bodies with a focus on our communication to provide guidance on our licences.


We have embarked on reviewing various sectors throughout the year. The Federal and State Government has been one such focus and after an educative process a number of licences have been secured. Another such sector is Community Groups. A survey conducted in collaboration with Music Australia was implemented across the sector in order to better understand the way in which community groups use music and offer support where necessary.

Media Licensing

Video On Demand Subscriptions – a promising new market

Media Licensing generated $135 million in revenue across APRA AMCOS, increasing by 5.64%.


Radio and television continued to perform strongly, increasing by 7.7% to $125.2 million. In particular, the subscription television sector reaped the benefits of strong long-term licences, growing nearly 18%. On the new media front, licences for general websites increased by almost 19% to $5.4 million.


Subscriptions to Video On Demand (VOD) services took off in Australia and New Zealand this year, increasing by almost 16% to over $3.2 million. While still in its infancy, this emerging market looks to be a promising addition to our revenue mix. Early indications are that this sector will complement the transactional VOD market, rather than be a direct competitor.


Airlines too posted strong gains, up 34% on 2014 revenue, again reflecting the benefits of strong long-term licensing arrangements. With licence fees being based on a per passenger tariff, it now better reflects the value of music within in-flight entertainment services.


The only downturn was in the cinema sector, which decreased by just over 1% to $4.5 million. This reflects a market that is crowded when it comes to audio-visual entertainment. However, early indications for FY16 are that this sector will bounce back, with a great roster of new movies hitting cinemas recently.

International

International revenue has grown from strength to strength this year, indicating the popularity and clout of our members’ music overseas. Total revenue increased by 25% ($6.9 million) to $34.0 million, despite a strong Australian dollar early in the financial year.   Our Pan Asia licensing project has also continued to expand, with agreements now secured in 15 countries. Since July 2013, we’ve established a simple, one-stop shop for multi-territory licensing schemes for music use online. This covers the largest number of Asian territories for the largest possible repertoire of musical works.