Value of Australian music industry declined by 39% in 2020 [report]
Released as part of the consulting group’s annual Entertainment and Media Outlook, the report indicated that the Australian live and recorded music market is now valued at $1.1 billion, whereas 2019’s total music market value came in at $1.8 billion.
The drastic loss in revenue is largely attributed to the suspension of the national touring market, which accounted for just $86 million in 2020.
Australia’s digital music market, meanwhile, grew by 8.3% over the course of the year, with streaming services such as Spotify and Apple Music accounting for much of the sector’s continued growth.
However, PwC noted that the digital market’s growth rate was slower than in previous years, with alternative entertainment streams and sector maturation possibly inhibiting the market’s exponential growth.
The report also revealed that the total revenue of the music industry is expected to rise to $2.2 billion by 2025, with a projected compound annual growth rate of 3.3% being dependent on the recovery of the live music sector.
Throughout the report, PwC made reference to Australia’s live music sector as being one of the most hard-hit throughout the pandemic, commending the resilience and ingenuity of the industry as a whole.
“The live music sector was hit hardest of all sectors in 2020, and the recovery is clouded by a range of factors outside the control of artists, promoters and entertainers,” the report reads.
“Sporadic lockdowns, a delayed vaccine roll out and ongoing border closures did not stifle the ingenuity and innovation shown throughout the sector in 2020 as alternative programs were developed to keep the industry afloat.”
PwC also found that the overall media and entertainment sector declined by 3.6%, with radio also experiencing a 10.6% loss ($1.4 billion) despite the emergence of podcasts, streaming services and catch-up services.
Read the annual Australian Entertainment and Media Outlook for 2021 in full here.