The Economic & Cultural Value of Live Music in Australia in 2014
Employing a cost-benefit analysis (based on a national consumer survey, venue owner and operator interviews, and secondary data on the sector), this report attempts to provide “a valuation of the economic, social and cultural contribution” of live music in Australia.
The headline finding of the report is that, “for every dollar spent on live music in Australia, $3.00 worth of benefits are returned to the wider Australian community”. The costs of live music were estimated at $5.0 billion in 2014, while live music’s benefits were “conservatively” valued at $15.7 billion, including:
- Individual benefits of $10.4 billion, including direct expenditures on live music (i.e., the $5.0 billion that Australians spent on tickets, food, and beverages at live music events) as well as an estimate of live music consumers’ willingness to pay (a measure of their satisfaction). For individuals, important social benefits of live music include “greater social capital and improved health and wellbeing”.
- Civic benefits valued at $3.2 billion, including “an estimated 65,000 full and part-time jobs enabled by spending on live music and taxation revenue to all tiers of government”. Given that the survey results showed that about one-half of respondents travel to attend music events, live music could also confer competitive advantages to jurisdictions with strong music scenes.
- Commercial benefits of $2.1 billion, including “profits generated by live music producers and a net positive impact on productivity at work reported by live music attendees”.
The report concludes by recommending further research into live music volunteerism, potential benefits that “non-users of live music might receive from live music activity in their community”, potential impacts of live music on worker productivity, and a national “satellite account for live music, that comprehensively details how live music making directly impacts on the Australian economy”.