Australia's record industry is on track to return to growth for the first time since 2012 with digital revenues accounting for more than two-thirds of sales and the contribution from streaming services such as Spotify doubling for the second year running.
Australian Recording Industry Association chief executive Dan Rosen said it was likely that growth would return to the local recorded-music market for 2015. "It will be small growth, but it is moving in the right direction. Overall revenues are trending up," he told Fairfax Media. 
Sales have been helped by acts such as Australian punk-pop band 5 Seconds of Summer, whose eponymous debut studio album made No. 1 on the United States, British and Australian charts.
Singer-songwriter Vance Joy achieved 4 million global sales of his single Riptide and almost 300 million streams on Spotify, and a dozen Australian acts have topped the ARIA album charts including Perth band Tame Impala and country singer Lee Kernaghan.
In 2012, total recorded music revenues - which includes physical sales - rose for only the second time in a decade - buoyed by a series of global hits, including Adele's album 21. However, they fell 11.6 per cent in 2013 and slid 9.62 per cent last year.
A return to modest growth will come as a relief for the music industry, which has seen sales of CDs tumble during the past 15 years while digital sales have been crimped by piracy through the use of peer-to-peer online sharing.
Streaming services, led by Spotify, which offer vast digital libraries for about $12 a month or music free with advertising, claim to have converted many pirates back to paying for music.
"The opportunity and the continuing challenge is to get more Australians signing up for the paid subscription services. It's the second wave of disruption," Mr Rosen said.
As they push people towards digital services like Spotify and Pandora, telecommunications companies will be an important part of growth in legal music services, he said, such as Telstra offering 12 months free on Apple Music to newly contracted customers.
"There are still challenges ahead, we still need to make sure the digital revenues continue, we need to work with the government to make sure that IP [intellectual property] continues to be protected online so we can continue to invest in Australian content and new digital business models."
Social media will also play an important role in Australia's music industry by creating fan engagement, Mr Rosen said, pointing to the work it is doing for this year's ARIA awards, which take place Thursday night.
"We've made a significant investment in our digital and social strategy, which saw last year the ARIAs not only was the No.1 trending topic but also trended globally.
"And this year, with our live Twitter vote we've already had over 1.7 million votes, it's showing a great return on the investment we've made over the last couple of years and also demonstrates that music is a passion point for people."
He said ARIA has not spoken to the government yet but is considering asking for producer offsets similar to those that many local television productions and films get.
Some television dramas get a 20 per cent offset, while feature films receive 40 per cent. The TV industry is lobbying for its offset to be 40 per cent.
"The tax offsets that apply to film could apply more broadly to the creative industries. Music is a prime example. Let's increase the amount of Australian voices and stories that we create here and export to the world. Australian music is enjoying incredible success overseas and with technology it's easier than before for Australian music to be heard overseas, because you can get your music on global platforms, the global streaming services."