The economic, social and cultural contribution of venue-based live music in Victoria Arts Victoria 20 June 2011 Economic, social and cultural contribution of live music in Victoria Contents Executive Summary .................................................................................................................... i 1 Background to the analysis .............................................................................................. 1 1.1 Research framework ......................................................................................................... 1 1.2 Policy context ................................................................................................................... 4 1.3 Report structure ............................................................................................................... 8 2 Venue-based live music in Victoria .................................................................................. 9 2.1 Industry overview ............................................................................................................. 9 2.2 Economic structure ......................................................................................................... 14 3 Economic contribution .................................................................................................. 19 3.1 Modelling approach ........................................................................................................ 19 3.2 Industry income estimates .............................................................................................. 20 3.3 Economic contribution estimates .................................................................................... 22 3.4 Sensitivities and limitations ............................................................................................. 24 4 Social and cultural contribution ..................................................................................... 25 4.1 Culture............................................................................................................................ 26 4.2 Community ..................................................................................................................... 37 4.3 Quality of the environment ............................................................................................. 41 5 Music festivals .............................................................................................................. 43 6 Challenges and opportunities for Victoria’s live music sector ........................................ 47 6.1 Broader live music landscape .......................................................................................... 47 6.2 Licensing (liquor and gaming) .......................................................................................... 50 6.3 Property rights and amenity ............................................................................................ 53 7 Conclusions ................................................................................................................... 54 References .............................................................................................................................. 55 Appendix A : Acknowledgements ............................................................................................ 60 Appendix B : Key data sources................................................................................................. 61 Appendix C : Survey questions and approach .......................................................................... 62 Appendix D : Survey responses ............................................................................................... 72 Appendix E : Economic contribution ........................................................................................ 77 Limitation of our work ............................................................................................................... 80 Liability limited by a scheme approved under Professional Standards Legislation. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. © 2011 Deloitte Access Economics Pty Ltd Economic, social and cultural contribution of live music in Victoria Charts Chart 2.1 : Typical operating week – Victorian live music venues ............................................. 11 Chart 2.2 : Change in number of live performances provided (performers and venues) ........... 12 Chart 2.3 : Number of ‘live music’ venues by capital city ......................................................... 13 Chart 4.1 : Genre of music most often provided (venues) ........................................................ 27 Chart 4.2 : Victorian attendance at selected cultural venues and events, 2005/06 .................. 33 Chart 4.3 : Victorian attendance at selected cultural venues and events by age group, 2005-0634 Chart 4.4 : Reason for attending live music performances (patrons) ........................................ 38 Chart 4.5 : Live music performances as a proportion of all social outings (patrons) ................. 39 Chart 5.1 : Live music location preferences (patrons) .............................................................. 44 Tables Table 2.1 : Summary of live performance overhead estimates................................................. 16 Table 2.2 : Performer income sources ..................................................................................... 17 Table 3.1 : Victorian venue count by live music financial dependency ..................................... 20 Table 3.2 : Total turnover by Victorian venue type ($m) .......................................................... 21 Table 3.3 : Victorian performer average live performance income 2009/10 ............................ 21 Table 3.4 : Victorian performers’ total live performance income 2009/10 ($m) ....................... 22 Table 3.5 : Direct economic contribution 2009/10 ................................................................... 23 Table 3.6 : Total economic contribution 2009/10 .................................................................... 23 Table 3.7 : Total economic contribution sensitivities ............................................................... 24 Table C.1 : Patron survey......................................................................................................... 62 Table C.2 : Performer survey ................................................................................................... 65 Table C.3 : Manager survey ..................................................................................................... 67 Table C.4 : Venue survey ......................................................................................................... 69 Table D.1 : Patron survey demographics ................................................................................. 75 Table D.2 : Profile of performer/manager survey responses .................................................... 75 Deloitte Access Economics Economic, social and cultural contribution of live music in Victoria Figures Figure 2.1 : Revenue allocations (‘door deal’ model) ............................................................... 15 Figure 4.1 : Typical performer career path .............................................................................. 29 Figure D.1 : Distribution of Victorian patron survey respondents............................................. 72 Figure D.2 : Distribution of APRA registered live music venues in Victoria ............................... 73 Figure D.3 : Distribution of APRA reported live music expenditure in Victoria .......................... 74 Figure E.1 : Output compared to value-added ......................................................................... 77 Figure E.2 : Incremental contribution of live music in ‘supported’ venues ............................... 78 Deloitte Access Economics Economic, social and cultural contribution of live music in Victoria Glossary ABS Australian Bureau of Statistics APRA Australasian Performing Rights Association EPA Environment Protection Authority FTE Full-time equivalent GOS Gross operating surplus GSP Gross state product SEP Special Entertainment Precinct SEPP State Environment Protection Policy Liability limited by a scheme approved under Professional Standards Legislation. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. © 2011 Deloitte Access Economics Pty Ltd Economic, social and cultural contribution of live music in Victoria Executive Summary The Victorian Government is interested in generating new and improved forms of evidence in relation to the significance of the contribution of the Victorian venue-based live music sector. In addition to this, there is a strategic need for the live music sector to consider its current position and identify opportunities for, and potential