While the government has made it clear they’re more than a little out of touch with the music industry in Australia, a new report out of the University of Tasmania could convince the government they should pay more attention by speaking their language – money.
The report, titled Live Music In Australia 2014, was compiled by Dr David Carter of the University of Tasmania with economist Paul Muller, who found that the Australian live music industry gives back to the economy three times what it takes in, to the tune of nearly $16 billion.
The study surveyed indoor, outdoor, and festival venues in Sydney, Melbourne, Adelaide, and Hobart, ultimately coming to the conclusion that the broader economy and society in general benefit greatly from having music performed in venues around the country.
Among the benefits are approximately 65,000 full and part-time jobs, the income generated for both venues and performers, rent and profits for owners, food and drink sales across the production hierarchy, and the boon for local economies from interstate and international travellers.
The study even cited internationally performed research which suggested those who engage with live music tend to live longer. So the next time your friends and family complain that you’re always out at a gig, tell them it’s for your health.
The study was conducted by interviewing venue owners and operators and performing an online survey of consumers. After crunching the numbers, Dr Carter and Muller came to the conclusion that live music adds an overall value of $15.7 billion to the Australian economy – and that’s a “conservative” estimate.
Interestingly, it’s not necessarily the music where the greatest revenue is derived. Ticket sales collect 19 percent of money spent by live music consumers, while food and drink are the greatest expense. Just over 29 percent of money spent by punters was on food and drink.
“This research is an important milestone for the Australian live music industry.”Another significant factor was the cost of travel to and from venues, which accounted for 17 percent of revenue, followed by accommodation. The report suggested that live music consumers are more than willing to travel, not just within their own city, but other towns, states, and even countries.
However, musicians continue to struggle. “Relatively few performing musicians are able to generate a living wage from their music, with the median income for practicing musicians in Australia calculated at just 7,200 dollars per year,” the authors wrote.
“This suggests that a significant proportion of the costs of live music performance may be subsidised by other industries.” So it turns out independent musicians don’t really earn $300,000 a year, someone tell the federal government.
The study also concedes that there are societal problems associated with live music, including issues such as alcohol abuse, alcohol-related violence, and high-risk behaviour. It’s also important to note that not all of the metrics cited in the study can be measured accurately.
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“Although generous in discussing their motivations, commercial risks and business models, a number of the live music venue owners and operators were reluctant or unable to fully disclose their cash flows,” the report’s authors wrote.
“This reflects the commercially sensitive nature of financial data in an industry that is still largely cash-based and the often-complex commercial arrangements within each venue.”
Industry lobby the Live Music Office lauded the report’s findings. “This research is an important milestone for the Australian live music industry,” Live Music Office policy director John Wardle said in a statement.
“We’ve created a benchmark for governments and the community to understand the importance of live music to Australian culture, community and the economy.” Readers can check out the full report via the official Live Music Office website.
