This report provides a valuation of the economic, social and cultural contribution to the Australian community of the Australian Live Music Industries. The valuation employs a cost-benefit analysis framework that draws on a national survey of consumers; interviews with venue owners and operators; and currently available sector data.

Cost benefit analysis considers the benefits that flow to the broader community from money spent on a particular activity, in this case live music. Cost benefit analysis is commonly used by governments to evaluate the merits of policy choices and assumes that any positive change in public welfare enabled by an activity is a benefit that might otherwise need to be met by the community.

Our research has identified that live music spending in Australia delivers at least a 3:1 benefit-to-cost ratio. This means that for every dollar spent on live music in Australia, $3.00 worth of benefits are returned to the wider Australian community. We conservatively value this contribution at approximately $15.7 billion for 2014.

This figure is larger than previous valuations of the Australian live music industries due to our more detailed model of consumer spending and a more complete accounting of the various ways live music benefits the community.

A key finding of our research is that producer accounts of live music spending, such as ticket, food and alcohol sales, represent less than half of actual spending on live music attendance. Valuations of the live music sector that rely on producer data, by extension, are likely to under- represent the sector’s economic inputs and outputs. Similarly, accounts of the live music industry that do not consider civic and individual benefits that flow from live music activity are likely to under-value the contribution that live music makes to our community.

To avoid the possibility of presenting inflated figures, we have, wherever necessary, overestimated costs and underestimated benefits. This has resulted in a conservative, but rigorous valuation that may increase
with the availability of additional data. For example, we were unable to identify the impact of volunteering on the live music sector due to a lack of information on the prevalence and scope of volunteer activity.

The $15.7 billion of benefit identified by this research comprises approximately $2.1 billion of commercial benefits, $3.2 billion of civic benefits and $10.4 billion of individual benefits.

Commercial benefits comprise of the profits generated by live music producers and a net positive impact on productivity at work reported by live music attendees.

Key findings:

1. Live music spending in Australia delivers at least 3:1 benefit-to-cost ratio;
2. Nationally, an estimated 65,000 full and part-time jobs are created by monies spent on live music (page 39), with taxation revenue generated for all tiers of government,;
3. Food and drink is the number one expense for those attending a live music performance equating to 29.3 per cent of the total spend;
4. Expenditure on tickets comes in second at 19.2 per cent of spend, followed by travel at 17.6 per cent and accommodation at 12.4 per cent;
5. Audiences are prepared to travel significant distances to attend live music, and this demonstrates live music is a source of regional competitive advantage
6. Live Music attendance was identified by punters and venues as contributing to improved health and wellbeing.