Study: Aussie live performance industry worth $2.5bn

The Australian live performance industry is worth $2.5 billion, according to Live Performance Australia (LPA)’s second study of the economic size and scope of the sector. The study, issued this morning, was prepared by EY (formerly Ernst & Young). It is based on the latest data available, from 2012.

The June 2014 study is broader in scope than the previous issued in 2010 (based on 2008 data). It includes the key organisations of the Australia Council for the Arts, and regional and metropolitan venues that are members of the Australian Performing Arts Centre Association (APACA).

It now shows that the live sector accounts for 34,131 employees. This is greater than the 20,439 people employed in film and video as their main job.

Among the numbers making up the $2.5 billion output, 49.6% comes from box office income ($1.2 billion), 28.9% from corporate sponsorship and support ($99.90 million) and 17.6% from government funding ($44.7.30 million).

The study also shows that the industry’s Value Added – the market value of goods and services produced by an industry, after deducting the cost of goods and services used – is $1.53 billion. This is a 17% growth from $1.15 billion in 2008 to $1.3 billion in 2012. LPA attributed growth to an overall rise in industry wages and a 21% increase in the number of full time equivalent employees. LPA’s chief executive Evelyn Richardson explains, “The industry’s value add is significantly higher than analogous industries, including Film, Television & Digital Games ($930 million – ABS data).”

NSW and Victoria continue to comprise 65% of the total value of the industry in terms of industry output and value add. The study also includes new per capita analysis, which shows that NSW has the highest value add per capita at $79.79.

NSW’s live performance sector contributed $586.5 million to the NSW state economy, Victoria’s $422.4 million to its state economy, Queensland $236.5 million, Western Australia $161.7 million, South Australia $87.9 million, ACT $19.4 million, Tasmania $13.2 million and NT $1.5 million.

In terms of value added, NSW had a 38.4% share worth $967.4 million. Victoria’s share was 27.6% with $693.8 million. Queensland was 15.5% ($400.1 million), WA 10.6% ($275.6 million), South Australia 5.7% ($151.3 million), ACT 1.5% ($32.1 million), Tasmania 0.9% ($22.7 million) and the Northern Territory 0.1% ($2.7 million).

In event category terms, Contemporary Music has the highest share of value add at nearly 37%. It generated an output of $830.9 million. In terms of value add, the category contributed $564.0 million to the Australian economy, representing 36.9% of the total value add by the industry. Musical Theatre which created output of $371.8 million and value add of $186.3 million, representing 12.2% of the total value add of the live performance industry.

LPA’s Evelyn Richardson commented that the live performance industry also generated less tangible benefits such as improved social cohesion, lifestyle improvement, diversity and increased creativity, not reflected in economic metrics. “Our industry is a significant contributor in terms of financial, employment, and quality of life metrics to the Australian economy”, she said.