Aussie music exports worth $195m a year [report]

Australian independent labels domestically have a 30% share of the recorded music market, according to figures published in 2017.

But it’s more of a level playing field in terms of revenue from global markets.

The Australia Council of the Arts’ Born Global: Australian Music Exports, is the first report of its kind, and puts the value of music exports at $195 million a year.

It’s a significant figure, about the same as the coal and beef industries.

The $195 million includes export income of Australian artists, music publishers and record labels.

The report, released July 12, is the result of three years of research by the University of Newcastle and Monash University, in partnership with Sounds Australia, APRA AMCOS and the Australia Council.

The Australia Council’s arts practice director for music, Paul Mason, says: “Music is one of our nation’s most powerful cultural exports.

“When our artists connect with audiences around the globe, they are sharing culture and perspectives.

“The increased number, range and diversity of Australian musicians who are achieving international success is promoting a rich and nuanced sense of Australian creativity in a global context.”

Mason makes an important point: the report is set to generate discussion on how to grow Australia’s foreign income.

He says, “The insights from this research help to paint a clearer picture of the state of Australia’s exporting music industry, as well as the opportunities for its future, including potential avenues to support the continued growth of the industry.”

BREAKING DOWN THE FIGURES

61% of the $194.5 million comes from artists.

They make up $119.1 million, of which live performance makes up $58.5 million (or 49%), songwriting and performance royalty income is $43.5 million (37%) and “other income” as merchandise and sponsorship brings in $17 million (17%)

In other words, streaming may have flung open the doors, but it’s still relentless touring that is creating the success.

Elsewhere income from publishing makes up $38 million or 20% of the chart.

Foreign income from record labels is $37.5 million or 19%.

Major labels make $20 million and independents generate $17.5 million.

Government grants provided the largest source of export support among surveyed artists.

Those with support from both government and industry reported the greatest export success.

THREE THINGS NEED TO BE FIXED

1. Wider distribution of foreign income.

The good news, according to Born Global, is four in ten Australian artists reported foreign income or expenses.

This is in line with a 2017 economic study of professional artists, which found that 39% of Australian musicians had an overseas engagement in the previous five years.

But the bad news is that the distribution of income is abysmal. Just 10% of artists account for 97% of earnings.

Suggests Born Global, “Many factors may contribute to this skewed result, including challenges of distance, international touring costs, administrative obstacles and competition to access markets.

“But such a concentration of earnings is also broadly typical of income distribution across the music sector, where a few people earn a lot, and most people earn relatively little.”

It also points out that musicians, singers, songwriters, composers and DJs who are successful, abroad tend to be successful at home.

Should export grants and schemes need to be sharper about spreading the joy than focussing on “export ready” talent?

2. Hit more markets

The biggest markets for Australian music are the US, UK and Germany.

But Britain, in its export income report last September, noted that it also derives income from continent Europe and seeing rapid growth in new markets as China, India and Brazil.

This need to diversify foreign income is already addressed by organisations as Sounds Australia which has led trade missions to South America, and in April got $1.6 million from the federal government to help expand into Asian markets.

In the meantime APRA AMCOS is widening the cities where it holds its SongHubs collaboration meets, while AIR and the Association of Artist Managers have schemes where members base themselves for short periods to learn about overseas markets.

APRA AMCOS CEO Dean Ormston points out:

“More and more Australian musicians are now globally recognised household names, with music now standing alongside the powerhouses of Australian exports; food, agriculture, wine, tourism.

“But we are at a critical time for our industry, at a crossroad when the economic models that support music are shifting around the world.”

“The opportunity now is to build on the work in the North America and European markets and to explore the full potential of Australian music exports and people-to-people links in the Asia-Pacific rim and South America.”

Lead researcher and University of Newcastle conjoint Professor Richard Vella adds:

“Australian music has always punched above its weight on an international stage.

“The internet means musicians today operate in a ‘born global’ environment.

“They can digitally release their music at the same time in multiple countries without always having to begin by promoting their work locally.

“This first-of-its-kind study unpacks the structures, support and international strategies Australia needs to have in place to ensure its artists are export ready.”

Fellow researcher, Associate Professor Shane Homan from Monash University makes the point:

“Australia is well placed to build upon recent successes and establish long term goals and infrastructure that rewards governments, artists, managers and recording labels for sustained effort.

“There is substantial scope to support Australian artists who have shown that they are innovators, and where live performance remains a key component of global success.”

3. Learn from other markets

* The entire spectrum of the music industries in Finland, France, Britain and Sweden work together to break markets.

* The governments of France, South Korea and Britain see contemporary music exports as part of a wider branding of their countries and as part of their tourism draw.

* Nordic countries emphasise how the basic expansion of music education in schools lead to more musicians and demanding music lovers, and a culture where corporate businesses play their part in spreading music abroad.

This was one of the recommendations made by the House Standing Committee on Communications and the Arts following an inquiry into the Australian music industry