MusicSA: Exploring the economic impact of South Australia's music industry
MusicSA: Exploring the economic impact of South Australia's music industry
MusicSA is the peak body and advocate for the South Australian (SA) contemporary music industry. It is an independent, not-for-profit organisation which operates solely for the benefit of the state-based grassroots music industries. Together with other state and territory peak bodies, it forms the Australian Music Industry network (AMIN).
To support MusicSA’s advocacy work, inform their strategic direction, and provide information to government and other key stakeholders, the organisation commissioned BDO's economics team to produce a comprehensive analysis of the economic contribution of SA’s music industry, the first report of its kind for the state’s independent music sector since 2017.
“Given their successful completion of the 2017 study and excellent reputation for delivering high-quality, industry-wide economic analysis, BDO’s economics team were ideally placed to deliver this report”, says MusicSA CEO, Christine Schloithe.
The detailed report offers valuable insights into the sector and its value, revealing that it contributed an impressive $490 million to SA’s gross state product in the 2022/23 financial year, and supported 5,000 full-time equivalent jobs.
Also supported by the Music Development Office, the City of Adelaide, and Festival City Adelaide, the report highlights the resilience and growth of the state’s music industry despite challenges posed by the COVID-19 pandemic, and economic difficulties squeezing the national live music industry.
“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 music industry is, even in the face of a global pandemic and the toughest business conditions on record,” says Ms Schloithe.
The report also identified several key opportunities for MusicSA to support the industry through ongoing challenges, including rising operating costs and a shift in consumer behaviour towards digital consumption:
- Leverage digital technologies to strengthen revenue streams and reach new audiences
- Develop new business models for music venues to diversify revenue streams away from alcohol sales
- Enhance insurance literacy for live music and festival businesses, exploring relationships with industry-savvy providers
- Adopt a ‘whole of supply chain’ approach to maintain incubator venues and businesses that support grassroots musicians
- Conduct market research to leverage the preferences of younger music consumers, such as digital platforms and strong environmental values.
“BDO’s economic examination of SA’s music industry and resulting insights will help MusicSA and our stakeholders to understand, support, and sustain the industry and supporting sectors and to advocate for continued investment,” says Ms Schloithe.
Through a deeper understanding of economic impacts and opportunities, policymakers and leaders can develop evidence-based strategies and take actions that foster growth, support local businesses, build resilience and adaptability in their industry.
Insights like these are important and relevant to help any sector make confident decisions about their future, prioritising adaptability in an evolving economic landscape.
Contact us to find out how access to the right economics research and information can help your organisation or industry.