Music sales in NZ

Stuff reports:

Lorde’s success comes despite the industry both here and abroad facing near-crisis as revenue streams collapse.

According to financial statements for Universal Music filed to the Companies Office between 2009 and 2012 the sales of physical CDs, the traditional cash-cow of the sector, slumped 41 per cent.

Despite digital sales in the same period more than doubling – from a low base – there’s a gaping chasm on the revenue statements of the music industry.

Let’s have a look at this near crisis. I decided to go to the Companies Office and look at the accounts for Universal Music New Zealand Ltd.

Revenue in 2011 was $20.99 million and in 2012 was $22.11 million.  That’s a healthy 5.4% increase in sales. How on earth is that a near-crisis?

Net Profit before tax increased from $432,000 to $578,000. That’s a 33.8% increase.