Martin Foley MP

Minister for Mental Health GPO 8ox4057 Minister for Equality 3001 Minister for Creative Industries Telephone: +61 3 9096 7500 www.dhhs.vlc.gov.au Ref: BMIN1800492SR

Mr Luke Howarth MP Chair of the House Standing Committee on Communications and the Arts CANBERRA ACT 2600

Dear Mr Howarth

INQUIRY INTO THE AUSTRALIAN MUSIC INDUSTRY

Thank you for your letter to the Premier of 16 August 2018· about the Parliamentary Inquiry into the Australian Music Industry. Your letter has been referred to me for my consideration and response as the matter you raise falls within my portfolio of responsibilities.

On behalf of the State Government of Victoria, I am pleased to make a submission to the Inquiry. The Victorian Government "".'elcomes this inquiry and supports a national, coordinated approach to sustaining the growth of the Australian music industry.

Victoria has a demonstrated reputation as a centre of music, with more live music than any other state in and a diverse array of iconic cultural music institutions, as well as supportive music·related laws and strategies.

The attached submission describes the Victorian Government's significant investment in the music industry, in particular how Music Works, the Victorian Government's major program commitment, has successfully addressed challenges and opportunities affecting the growth and sustainability of the music industry in this State.

Thank you for inviting a submission from the· Victorian Government's and I look forward to hearing the outcomes of this inquiry.

~ rtin Folf MP ~ inister for Creative Industries

Date: ~/. {2 .. t_o(r PARLIAMENTARY INQUIRY INTO THE AUSTRALl~N MUSIC INDUSTRY

FACTORS CONTRIBUTING TO THE GROWTH AND SUSTAINABILITY OF THE AUSTRALIAN MUSIC INDUSTRY

VICTORIAN ,. ' ... I JIP 1111p .-a BMISSION DECEMBER 2018

1: Introduction

Victoria makes a strong claim to the title of 'music capital of Australia' Victoria's music industry enjoys a stellar reputation, attracting and promoting local talent, and drawing participants from ·across Australia and around the world.

The industry is a valued and dynamic contributor to Victoria's social, cultural and economic life. The industry is also a vital component of Victoria's creative industries. Collectively, these industries make up eight per cent of the state's economy, contributing over $28 billion and 260,000 jobs.1

Victoria celebrates music in all its forms: from a community and social perspective; and, as a key cultural and economic driver that brings together communities and provides development opportunities.

Victoria has a demonstrated reputation as a centre of music, an industry worth over $2.5 billion nationally, contributing to the reputation of Victoria as a centre of culture and innovation. Victorja also recognises that music crosses all practices and industries. ·

The Victorian Government therefore welcomes the House Standing Committee on Communications and the Arts inquiry into Factors contributing to the growth and sustainability of the A_ustralian mu_sic industry.

2: IV1us1c Industry in Victoria

The quality and depth of the Victorian _music industry is demonstrated across live musl~, musicians, festivals, the physical music market, community radio and the dance scene.

2.1 Lave ,uslc

Melbourne is the live music _capital of Australia, with high and increasing attendance at live music performances and a vast array of live music venues -from international stadium tours to smaller neighbourhood gigs.

Melbourne offers more live music venues than any other city: 465 live music venues (or one venue per 8,915 residents); more than New York, Paris, London, Berlin and Tokyo.2 These include iconic m uslc venues - such as The Forum, The Pala is, The Espy, The Corner Hotel, The Prince Band room,

1 Estimates prepared In 2018 by Department of Economic Development, Jobs, Transport and Resourc~s based on methodology of Victoria's Creative and Cultural Economy, April 2015 by Boston Consulting Group. 2 Internal data provided by Tourism, Events and Visitor Economy Branch, Department of Economic Development, Jobs, Transport and Resources. and Festival Hall- as well as countless small-to-medium city venues and.almost 200 live music venues in regional Victoria.

Live music in Melbourne is further bolstered by a thriving 'open all hours' economy, supported by· all-night public transport options.

Live music events in Melbourne increased by 19 per cent between 2012 and 2017, and 55 per cent of music venues reporte.d an increase in live music audie.nces in 2017.3

In 2016, live music generated $175.S million in revenue from 2.1 millior.i audience members.4

Melbourne hosts more than 62,000 live music concerts annually, worth more than $250 million in ticket sales alone, and has three times more live music performances than the national average.5

Victoria also supports a thriving contemporary, classical and Jazz music scene.

Cultural institutions, such as Arts Centre Melbourne, Melbourne Recital Centre and the Performing Arts Centre s_upport strong and diverse music programming: between them, these institutions drew audiences of more than three million people in 2016-17.6

Melbourne is home to the Melbourne Symph(?ny Orchestra, Opera Australia and Orchestra Victoria.

And the city hosts the high-profile Melbourne International Chamber Music Competition and Melbourne International Jazz festival.

In regional Victoria, the annual Wangaratta Festival of Jazz enjoys a national reputation for outstanding jazz programming and performances.

Victoria offers opportunities to develop practice and to find supportive audiences. As such, Victoria attracts music creators, of all genres, from across Australia. These creators are drawn to our grants for creation, opportunities to perform live, and our informed and engaged audiences.

Victoria has produced some of the biggest contemporary music acts in the world-including The Seekers, Nick Cave, , Gotye, Paul Kelly, The Avalanches, , Temper Trap, , Tash Sultana and, among many others, Vance Joy.

Young musicians are the lifeblood of the industry and flock to Melbourne for the opportunities offered across the industry.

Young musicians are nurtured through programs such as FFReeZA, a mentoring initiative that provides opportunities to participate in the planning, development and delivery of music and cultural events for young people in local communities.

First established in 1997, the FReeZA program reflects the importance the government places on providing young people with practical opportunities to participate in the planning, development and delivery of music and cultural events for young people, in their local community. Sixty-three per cent of FReeZA events staged in 2017 included live music; the majority were staged in regional Victoria,

3 http$:/'www.~wc.com.aii11ndustry/entertainment-and-:medh1-trends-analy~ outlook/music.html#snapshot 4 http://reports.1 lveperforma nee.corn .a u/tlcket-survey-2016/states#vlc-results 5 Music Victoria and the City of Melbourne, Victorian Live Music Census 2012 6 https://creatlve.vic.gov.au/research/data/performing-arts with 97,915 young people attending regional events and 65,276 young people attending events in Melbourne.7 ·

Even the humble art of busking- a vital means by which young ~usiclans test and hone their craft - is welcome and supported on the city streets of Melbou.rne.

2.3 Music-basea t-est1va1s

Music was a significant component (64 per cent) of the more than 430 festivals held throughout Victoria between 2015 and 2017.

Events such as Melbourne Music Week, St Kilda Music Festival, the Port Fairy Music Festival and the leaps and Bounds Festival were among the estimated 350, year-round, statewide festivals that feature live music.

Music-based festivals drive regional development and visitation. They help develop audiences and are a vital source of Income for performers. Music-based festivals should therefore be considered an important component of regional development and visitation strategies.

2.4 Community Rad o

Victoria is home to Triple R (3RRR 102.7FM), PBS 106.7FM, SYN and 3CR-the highest community broadcasting membership per capita in Australia.

The Music Victoria 2017 Melbourne Live Music Census indicated that more music fans in Melbourne Hsten to community and public radio stations (Triple RRR and PBS FM) than any other commercial station. This may well be a world-leading example of the local appetite for independen.t music.

Further, quotas on Australian music are often exceeded on community broadcasters.

3: The Value of the Victorian Music Industry

3.1 Economic

The music industry makes a significant employment and value-added contribution to the Victorian economy. More than 15,000 Victorians were employed in 2015 as performing artists, n:iusic composers or performing arts support workers.8

The portion of Australian consumer spend predicted to be spent on the music industry in 2022 is 6.4 per cent9.

Research by the national live Music Office found that live music spending in Australia delivers at 10 least a 3:1 benefit-to-cost ratio •

The economic contribution of live music in 2011 was estin,ated at $501 million; it created 17,200 jobs in small music venues alone (Deliotte).

:$.~ Cultural

7 Data provided by the Office for Youth, Department of Health and Human Services 8 https:// creative. vic.gov.au: research/data tperfo rm ing-arts 9 h~1s_;// www.11wc.c0m.au/industi 1,entertainment-and-medla-trends-anal,sis/outloolf,/muslc.html#sna;shot 10 http://livemusicoffice.com.auLwo-content/uQloadsJ2015/08/LiveMusic-re1,ort-FINAL.r df Melbourne is consistently ranked among the world's most liveable clties11 and enjoys a stellar reputation for its range of cultural activity, Infrastructure and Innovation. The music industry is a vital component in the state's cultural and creative ~cosystem.

The Australian Music Vault is a dynamic new space at Arts Centre Melbourne, charting the story of Australian music.

Drawing on stories and items from leading Australian performers and music Identities, as well as Arts Centre Melbourne's extensive national performing arts collection, the Australian Music Vault celebrates the people and events that have shaped - and continue to shape - contemporary Australian music.

The Australian Music Vault also houses the Australian Recording Industry Association (ARIA) Hall of Fame. With inaugural patrons including Kylie Minogue, Ian 'Molly' Meldrum, and Michael Gudinski, the Australian Music Vault opened in December 2017 and drew more than 200,000 visitors in its first three months.

The social impacts of music are well documented. Music events contribute to community bu.ilding12 and have been found to increase productivity13•

The venue-based live music industry nurtures creativity by providing scope to perform original music, develops music careers and Incubates talent, develops social networks, and fosters social engagement and connectedness, enhancing community wellbeinglA.

Victorians are passionate about music and its social role. The Save Live Australia's Music rally saw 20,000 people take to the streets, in 2010, to protest laws that linked live music to violence.

Creativity Australia's With One Voice is a Melbourne-based community choir activity which has expanded to 14 locatlons in three states and territories and involves over 1,000 people.

With One Voice uses singing as a tool to break down barriers and improve health. It is designed to bring together people of all ages and from all walks of life, cutting across socio-economic, cultural, 15 religious, generational and linguistic barriers. Survey results Indicated the following beneflts =

• 70 per cent increased their understanding and acceptance of diversity • 70 per cent gained new skills for work & life • BO per cent increased self-esteem • BO per cent reduced anxiety, relieved depression & made new friends • SS per cent agreed that attending choir improved the way they feel • 90 per cent improved wellbeing on a weekly basis

11 The Economist Intelligence Unit: http://www.eiu.com/top1c/liveabflitv 12 http :1/www.abc,net.au,cm/ lb/709762'5/ data/live-m usic-rep52rt-9ata.11df 13 http:Uqesculeyl.orq/wp

In 2011, Creative Victoria (then Arts Victoria) and DEECD jointly commissioned an evaluation of the program by Melbourne Graduate School of Education (Melbourne University). The final report, Partnerships between schools and the professional arts sector: evaluqtion of impact on student outcomes16, examines the impact.of partnerships across all art forms.

The report Indicated that the school/arts partnership programs investigated had a positive impact on a range of student outcomes.

In addition to improvements In art-related outcomes,. namely creativity and arts-re_lated knowledge and skills, arts partnership programs demonstrated improvements in three other general student. ·outcomes: student engagement, student voice and social learning. 4: CHALLENGES ND OP ORf NITIES FACING THE MUSIC INDUSTRY

4.1 Distribution of Creative output

Technology has enabled transformations in most areas of content development, including music. It has provided fertile ground for new business, new products and greater collaborat1on and it continues to demand innovation and adaptation of traditional models. In some areas, it has opened the way to more engagement with overseas markets and intensified international competition.

Streaming music services have reduced muslt piracy, made smaller and remote artists easier to discover, and stream_ing platforms can be used to increase live music awareness an~ ticket sales. Data from these platforms can also be used to better understand audiences, making it easier to ·plan tours and better target marketing effurts.17

.Streamed music does, however, present challenges for career sustainability as the remuneration for streamed music is considerably less than physical music sales, driving a greater reliance on live music to generate income. Artists are required to supplement income.from streaming services with revenue from touring.

4.2 The Night Time tconomy

Melbourne's vibrant live music scene, its late-night bar and restaurant culture and flexible approach . . to planning give it a foundation to become a truly global cultural destination: Events like White Night, all-night exhibitions, performances and festivals and our live music scene exemplify the willingn_ess of our venues, visitors and local audiences to embrace an 'always.on' approach to culture in the city.

4,3 Creative a11d economic sustainability

Practitioners and organisations consistently report difficulty In sustaining a creative practice. At the artistic end of the spectrum, this can mean finding the time to develop music, accessing affordable space or managing upfront costs. At the commercial end of the spectrum, there can be difficulties in

16 Arts Victoria and Department of Education and Early Childhood Development, Partnerships between schools and the professional arts sector: evaluation of impact on student outcomes, 2011 17 https://www.pwc.eom.au/industry/entertainment-and·media.trends-analysis/outlook/music.himl#snapshot raising finance, navigating the regulatory environment, gaining business skills or engaging overseas markets.

Musicians who took part in the 2017 Melbourne Live Music Census cited the main barrier to their music practice was financial viability, with 69 per cent of respondents saying their music earning 18 does not cover the costs of their music practice •

d

The pathways between scho·ol education; tertiary study and music careers are not always well defined and can be difficult to follow. Employment rates for graduates of music are relatively low and opportunities to gain hands-on, relevant Industry experience are too limited. Industry and technology developments in the creative sectors put constant pressure on course providers to design relevant curricula and produce 'work ready' graduates.

Music artists have also been experiencing stagnant wages relative to other income earners. The Australian Bureau of Statistics reports that in the last twenty-five years, as the price of a loaf of bread has risen from $0.28 to $2.38, incQmes have grown annually by 4 per cent- except for artists, who are being paid the same fee for gigs as they were 25 years ago11

4.5.1 Access for all Victorians

There ·are almost 200 venues antt well-established music scenes across regional Victoria. There is, however; an opportunity to capitalise further on the regional touring circuit. A greater number of interstate and international touring bands to regional Victoria provide valuable spill-overs for Melbourne venues and ~an be financially rewarding for local performers.

These opportunities are being maximised through the Victorian Music Crawl, a Victorian Government initiative that supports delegations of Victoria's leading music artists, managers, booking agents and peak body representatives on statewide visits to explore opportunities for contemporary music touring and collaboration.

4.5.2 Noise restrictions and property ·developments

Entertainment venues and residential venues will always need respectful paths to co-existence. Sound-proofing can present a large capital cost to live music venues, particularly historic or 'period' venues. Creative Victoria's Good Neighbours Program provides a matched-funding opportunity for live music venues across Victoria to manage their sound attenuation needs.·

4.5.3 The safety of patrons attending niusic events

Places of assembly, including music festivals, can bring safety risks to those attending - including the possibility of illicit drug use by some patrons. Information about drug use and better Government intervention, to support the fight against addiction or the misuse of drugs, can play a role ·in­ preventing overdoses and fatalities.

The Government is currently examining an appropriate role for Victoria Police in the planning of events .such as music festivals, seeking to prom~te community safety and to prevent harm related to

11 https:11www.musicvlctoria.com.au1assetsL2Q18 1MLMC-2011-Rei orHomnressed.i.:df 19 Internal data provided by Tourism, Events and Visitor Economy Branch, Department of Economic Development, Jobs, Transport and Resources drug use.

4.5.4 Ticket Scalping I Fair price for tickets

Victoria prides itself as the sports and major events capital of Australia. This reputation relies on ensuring the safety and wellbeing of spectators and event-goers at events throughout .the state. Additionally, there is a need to crack down on ticket scalpers to help genuine sporting fans, theatre goers and music lovers access ticketed events without having to pay inflated prices.

To tliis end, the Victorian Government has passed the Major Events Act 2009 to provide greater protection to the community from ticket scalping. This legislative change ensures that consumers are given a fair go when purchasing tickets and can attend events Without being priced-out or made to pay exorbitant costs. It is an offence to resell (and/or to advertise for resale) any ticket to a major event for more than 10 percent above the face value of the ticket.

Cultural events including theatre events, concerts, gallery exhibitions and festivals, now have the· potential to be declared 'major events' und~r the legislation. Authorised ticketing officers may fine scalpers who target declared events and may assist Victoria Police in the enforcement of the Act.

5: Government hwestment I the industry

The Victorian Government invests significantly in supporting musicians, live music venues, festivals, producers; and music-based organisations both in Melbourne and across regional Victoria. This· stretches from boosting the local music scene to .supporting major performing arts organisations such as Melbourne Symphony Orche.stra and Opera Australia.

Since 2015, Creative Victoria has allocated $57 million to music-based organisations and projects and awarded over 740 project-based music grants resulting in attendances of 2.35 million and involving 8000 artists. During this time, Creative Victoria has also awarded project grants through competitive funding programs that have leveraged $3 for each $1 granted.20

Under Creative State strategy, Victoria's first creative industries strategy; the Victorian Government has launched a range of initiatives to address growth and sustainability issues across the creative industries. Music businesses and organisations are the beneficiaries of these programs.

Notable, new programs include:

• The First Peoples Action Plan for the Creative Industries 2018-2020 is the Victorian Government's commitment to.providing improved strategic support of First Peoples' culture, cultural expression and creative practice in Victoria. The actions in the plan will deliver targeted ·progr~ms and influence creative organisations and individuals to better address cultural competency, safety and equity. The plan also includes actions that will lay the foundation for longer-term projects and investment that require significant investigation and planning. • Creative Victoria, through its Co-working spaces and creative places initiative, works with government and other partners to improve the conditions for creative spaces to emerge and succeed. This includes exploring potential changes to current policy and regulation, developing better information for those wishing to start creative spaces, and better understanding the needs, the types of spaces sought and the current barriers.

20 Internal Creative Victoria data • Foundry658, led by State Library Victoria and the Australian Centre for the Moving image, is a business accelerotlon program designed to help creative entrepreneurs, organisations and collectives turn their creative ideas into successful businesses. The progra.m provides free business development expertise and advice to help creatives working across all fields- including arts and culture, film and television, media, publishing, fashion, digital games and design. • Creative Victoria has established a Respectful Workplaces Working Group of industry leaders to address issues relating to sexual harassment, bullying and misconduct in Victoria's creative industries. The group is pursuing initiatives and developing resources to ensure more robust workplace policies and to effect positive cultural change. • The Social Impact Program supports projects that apply the services and expertise of creative industry organisations towards social goals and deliver a range of social benefits. Projects are . developed in partnership with other areas of government, social delivery NGOs, and philanthropic organisations. Project supported to date have Involved the· application of creative industry expertise in film, music and gamification to address social issues relating to youth, social cohesion, homophobia and mental health. r; S ate u t ral Inst Jt on

Creative Victoria funds the Melbourne Recital Centre (MRC) and the Arts Centre Melbourne (ACM). The MRC is the finest recital hall in Australia, designed for small ensemble performances from classical to jazz, world music to popular song and chamber opera. In 2017, Creative Victoria provided $3.9 million in operational funding and $0.6 million in capital funding.

ACM is Australia's largest and busiest performing arts centre, staging more than 4000 performances each year for over 3 million people. Arts Centre Melbourne receives 25 per cent of its operational funding from government.

5.2.1 Creative Victoria supports seven Major Performing Arts companies in Victoria, which play a pivotal role in the development of artists and audiences as well as being a large employer of artists and art professionals. These include the Melbourne Symphony Orchestra, Opera Australia, Orchestra Victoria and Victorian Opera.·

5.2.2 In addition to Major Performing Arts companies, Creative Victoria supports organisations through the Organisation Investment Program, which offers four-year operational funding to small, medium and l~rge organisations. This included 13 music organisations in 2017: .Chamber Made; Community Music Victor,a; Liquid Architecture; Melbourne Chamber Orchestra; Melbourne International Jazz Festival; Port Fairy Spring Music Festival; Songlines Aboriginal Music; Speak Percussion; The Boite; The Click Clack Project; Victorian Opera; Wangaratta Festival of Jazz; and, Wantok Musik Foundation. These organisations, combined with the Major Performing Arts companies, saw attendances of more than 3.2 million 21 between 2013 - 2017 •

5.3 Music Works

21 Internal Creative Victoria data Music Works is the Victorian Government's four-year, $22.2 million contemporary music funding and support program. The program boosts the development ofthe local music industry and supports local jobs through industry development projects. Music Works, a 2014 election commitment, addresses many challenges facing the Victorian music industry.

5.3.1 The Good Music Neighbours program supports Victoria's night time economy by providing a matched funding opportunity for up to $25, OOO for live music venues across·victoria to manage their sound attenuation needs.

5.3.2 The Music Works Grants Program provides support for projects and programs that wil1 develop Victoria's contemporary music sector, increase employment and build cultural capital.

5.3.3· Music Passport Grants is·a competitive grants category of the Music Works Grant Program. The program seeks to support not-for~profit organisations to undertake international activities that increase economic opportunities for Victoria's contemporary popular music sector.

5.3.4 The Music Works Quick Response Grants, which sit within the Music Works Grants Program, provide support to individuals, groups and organisations to cover immediate opportunities in regional Victoria in building capacity and connecting to markets.

5.3.5 Victorian Music Crawl, an interstate trade mission sees delegations of Victoria's leading music artists, managers, booking agents and peak body representatives visiting targeted regions around the state to explore opportunities fo.r contemporary music touring and collaboration. The Victorian Music Crawl travelled to Ballarat, Castlemaine, Bendigo and Echuca, generating an estimated $150,000 in new music business. The second Crawl headed southeast, taking in the Mornington Peninsula, Bass Coast and Southern Gipps_land region, with more to follow.

5.3.6 Music Under Wings is a $1.6 million professional development program for emerging contemporary music artists, industry personnel, live music events and venues. The multi­ faceted, three-year program qffers mentoring by established musicians and industry leaders, as well as masterclasses, skills development programs and business development training for anyone in.the early stages of their music ca.reer- including performers, promoters, producers, technicians and more.