Australia sees 11.6 percent drop in music revenue during 2013...is streaming to blame?

Music sales have not been so hot in recent years. You don't need us to tell you that again. But the new numbers coming from the Australian Recording Industry Association indicate that the land down under underwent an especially painful 2013.

Overall music sales in the country saw an 11.6 percent drop from 2012, a fall from $398 million worth of revenue during 2012 to $352 million last year. The United States and U.K. (similar markets) also saw drops, but not nearly heavy as Australia's. Reports from earlier in the year suggested a drop-off about half as drastic as Australia's, and even that number was considered brutal.

One stat that differed between the U.S. and Australia was the trend in digital sales. Digital downloads of songs dropped 5.7 percent, and digital album downloads dropped .1 percent. Australia actually saw rises in digital sales, as track revenues rose .5 percent and albums rose 8 percent. Those numbers might steer you from blaming streaming, but think again.

Digital sales may have risen, but streaming numbers rose even more. The total revenue generated by streaming doubled in Australia during 2013, largely because Spotify made its debut in the country during 2012, and it's catching on fast. The service has been available since 2011 in the United States, and two years later digital sales have dropped 5.7 percent. There isn't enough evidence to prove streaming is killing digital sales, but the relative stability of digital album sales suggests audiophiles are still buying records, while those who prefer to stick with Top 40 singles simply go to Spotify or similar services to get their fix.

Don't be surprised if Australia's digital numbers take a turn for the worse next year as well. Streaming services have loudly proclaimed their methods can maintain the record industry, but the proof hasn't made itself evident yet.