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.