MusicSA releases its new report,The Economic Contribution of the Music Industry to South Australia, 2022/23, the first report of its kind for the South Australian independent music sector since 2017.
The report, prepared by BDO EconSearch, and supported by the Music Development Office, the City of Adelaide, and Festival City ADL, highlights the resilience and growth of the state’s music industry despite the challenges posed by the COVID-19 pandemic and the current economic difficulties squeezing the national live music industry.
It underscores the importance of the sector within the South Australian economy and emphasises the need for increased strategic investment to leverage continuing growth, highlighting that the music industry has not only rebounded from the challenges of the recent years but has expanded its economic footprint and value to South Australia
The report highlights that:
– South Australia’s music industry contributed $490 million to the GrossState Product in2022/23, up from $375 million in 2015/16.
– Employment within the industry grew to over 9,200 jobs (5,000 full-time equivalents), rising from 6,300 jobs in 2015/16, which showcases robust job creation during economically challenging times.
Although the pandemic forced the closure of many small to medium-sized venues, it encouraged artists to innovate by enhancing their online presence. As the industry moves forward, it now faces new challenges, including rising operating costs, labour shortages, and higher insurance premiums, which threaten its ability to thrive.The report emphasises the urgent need for targeted investment to support sustained growth in the sector. Such investment would help the South Australian music industry not only strengthen its position in national and global music landscapes but also create sustainable careers for artists, generate new job opportunities, and foster the development of new music-related businesses.
Following this report, MusicSA is urging government and private sector stakeholders to recognise the critical economic role played by the music industry in South Australia. With the right investments, the industry’s growth can be accelerated, delivering benefits not only to the local economy but also enhancing South Australia’s cultural influence and profile on the global stage.
Core Points from the BDO Report:
Impact of COVID-19 on the Music Industry: The South Australian music industry faced severe challenges during the COVID-19 pandemic, including venue closures and significant income loss for artists due to the cessation of live performances. While grants were available, they were often insufficient, leading to the closure of several small to medium-sized venues. However, some artists used this time to enhance their online presence and leverage digital platforms like Spotify and TikTok to reach wider audiences.
Post-Pandemic Challenges: As restrictions lifted, the music industry saw a surge in live performances. However, rising operating costs, labour shortages, and increased event insurance premiums have made it difficult for the South Australian industry to thrive.
Cultural Shifts and Digital Platforms: There has been a noticeable shift in how younger generations consume music, moving away from traditional venues and towards digital platforms like Spotify and TikTok. This change has forced venues and music events to adapt their business models, often increasing ticket prices to cover costs. Additionally, there is a growing preference among consumers for larger, high-profile events over smaller, local performances, impacting grassroots music development.
Attracting Artists and Events: Despite Adelaide’s lower venue costs compared to other Australian states, the city struggles to attract interstate and international artists due to increased transportation costs and a lack of suitable venues for large-scale, weather-independent performances. Interviewees suggested creating a regional live music hub between Adelaide and Melbourne to attract smaller touring artists and boost local economies.
Opportunities for Development: The report emphasises the urgent need for targeted investment to support sustained growth in the sector, with the targeted funding to be put towards several strategies to foster growth in the music industry, including encouraging musicians to use digital technologies to expand their audience reach and helping venues develop new business models that reduce dependency on alcohol sales for revenue. Increasing awareness of insurance options for live music and festival businesses and adopting a comprehensive approach to supporting the entire music supply chain, which includes maintaining venues and businesses that nurture local talent. Additionally, the report suggests conducting market research to better understand the preferences of younger music consumers and use these insights to drive industry development.
Music SA CEO, Christine Schloithe, said on the report;
“It’s been ten years since any real research on the value of South Australia’s music industry has been undertaken and the results are remarkable! This report shows just how resilient and tenacious the South Australian industry music industry is, even in the face of a global pandemic and the toughest business conditions on record. South Australia, without question, is the home of untapped music talent and potential – imagine what this industry could achieve locally and globally if it was invested in properly to leverage its growth and success?”
South Australian Minister for Arts, Andrea Michaels MP said,
“The Malinauskas Government supported Music SA to undertake this research and deliver this report because we know how important music is to our state. Since coming to government, we have invested millions to support artists and live music venues and as this report demonstrates, that has assisted them to recover from the impacts of the pandemic. We will continue to ensure the South Australian music industry has a bright future in South Australia.”
READ THE FULL REPORT HERE:
