Oz Sales Down In 1st Half; New Tax On Goods Is Cited

Australian record shipments in the first half of 2000 declined 3.99% to 20 million units. Value dropped 7.68% to A$212.5 million ($121.1 million), according to the Australian Record Industry Assn. (ARIA).

ARIA attributes most of this drop to the introduction on July 1 of the 10% goods and services tax (GST). Retail stores curtailed purchasing stock in the lead-up to the GST, and consumers held off purchasing CDs under the assumption that prices would drop by up to A$5 ($2.85), ARIA claims. The average drop in CD prices was A$1 (57 cents).

ARIA notes that unit sales of new releases rose by 3%, with sets by Macy Gray, Killing Heidi, Vanessa Amorosi, and Britney Spears particularly strong. The Australian Music Retailers Assn. and execs from retailers Sanity and HMV tell Bulletin sales are up for the second half of 2000 so far. ?Christie Eliezer, Melbourne











Please note that the 3.99% decline in Oz figures is for units; the

total decline in value is 7.68%.



Australian record shipments in the six months to June 30 declined 3.99%, or

A$18 million ($10.27 million), for a total value of $212.5 million ($121.1 million),

according to the Australian Record Industry Association (ARIA). Unit sales

topped 20 million. ARIA attributes most of this drop to the introduction on July

1, of the 10% Goods & Services Tax (GST). Retail stores curtailed purchasing

stock in the lead-up to the GST, and consumers held off purchasing CDs under

the assumption that prices would drop by up to $5 ($2.85), ARIA claims. CD

prices dropped on average by A$1 ($0.57).

ARIA notes that unit sales of new releases improved by approximately 3%;

debut albums by Macy Gray, Killing Heidi, Vanessa Amorosi and Britney

Spears featured. Five local artists - Killing Heidi, Chris Franklin, Bardot,

Madison Avenue and Kylie Minogue - had No. 1 singles in the period. Six

Australian albums hit the top spot: Killing Heidi, Vanessa Amorosi, Bardot,

Savage Garden, 28 Days and John Farnham.

The Australian Music Retailers Association and executives from Australia retail

chains Sanity and HMV tell Bulletin that sales are up for the second half of 2000.



- Christie Eliezer, Melbourne