STRENGTHS
- Australian Contemporary Music Industry (ACMI) substantial contributor to Australia economically, culturally and socially.
- Success stories that provoke national pride.
- Multiplicity and fusion of genres in Australia create a particular identity in the international market place.
- Contributes significant economic value generating high levels of income employment and participation.
- Musical product exists also as an input to other products and services.
- Strong and growing independent recorded music sector.
- Diversity in products and services.
- Thriving independent sector.
- Growing number of small to medium size independent businesses.
- Strong and established collection societies.
- Industry is currently acknowledging weaknesses and being proactive in driving resolutions.
- Trend towards legitimate sale of music through digital channels.
- Contemporary Music is linchpin of emerging lifestyle technologies.
- Music economies value-add in the venues sector, production and delivery of recording, mediated performances, and support activities such as education and training.
- High level of live participation in regional centers.
- English first language.
- Strongly entrepreneurial businesses and artists.
- Strong ties with international music markets
- Active attempts to break into new international music markets
- Sounds Australia continues to be the main support mechanism for export of Australian Music.
- Existing trade links in other territories.
- Relatively low cost structures in relation to manufacturing.
- Strong sector representative bodies.
- Genuine propensity to innovative use of technology.
WEAKNESSES
- Political and economic environment not conducive to increasing presentation nor consumption of independent music. i.e share of radio airplay on commercial stations, access to retail.
- Industry is highly fragmented with poor communication between sectors.
- Fragmentation can lead to information gaps.
- Limited identification, aggregation and analysis of industry information.
- Immature relationship with financing and investment sectors.
- Under-developed relationship with government.
- ACMI (Aust Contemporary Music Industry) is small in global terms.
- Small domestic markets in comparison to Europe and US.
- Lack of access to capital and Inability to raise finance and capital.
- Intangibility of product and short term nature of music projects decreases investment opportunities..
- Shortage of relevant business and product packaging skills.
- Lack of specialist investment vehicles that could raise the industry’s profile among investors.
- Lack of access to critical industry information.
- Lack of support for industry operators.
- General lack of policy and fiscal acknowledgement of the cultural value of contemporary music.
- Opportunities for presentation hampered by restrictive legislation – live venues.
- Lack of whole nation and whole industry branding within international arena.
- Potential to be a disparate industry esp. the division between multinational majors and the independent sector.
- Lack of funds within the independent sector to support extensive export development. .
- Australian consumer trends indicate Australia being a net importer of music.
- Lack of access for the independent sector to radio and retail networks.
- Lack of framework for industry and government to monitor the effectiveness of anti-piracy enforcement provisions, and discuss future legislation and policy.
- Lack of education model to prevent ongoing piracy.
- Lack of critical industry information to support its case to industry government and investors.
- Poorly developed business models for digital content and application.
OPPORTUNITIES
- Contemporary Music is a final product in itself and an input into a series of other products and services.
- Potential for growth and innovation across the industry’s value chain.
- Sectors of the industry are beginning to merge into a cohesive unit.
- Large and growing number of small to medium businesses emerging.
- The independent sector is an important and growing contributor to Australia’s economy.
- The Industry is in a position where it wishes to drive solutions to its issues.
- Overseas marketing – international trade fairs, showcase opportunities within Australia and overseas.
- Evolution of self-produced sound recordings (could be threat – quantity vs quality).
- Rapid growth of online distribution methods (could be threat – illegal use).
- Wholesale value of physical recorded music sales dropped significantly since 2003 opens up other consumption models (could also be a weakness – decreasing sales).
- Digital sales have grown exponentially (could be threat depending on legal or illegal use of IP).
- New technology creating new applications for music i.e. ring tones.
- Emergence of new products, revenue streams and distribution channels.
- Emergence of new business models.
- Shifting nature of global competition.
- Growing Asian export markets.
- Potential for higher market share in other OS markets.
- A shift towards increased import replacement (Australians buying more Australian music).
- Investment in music business and training.
- Increased cost efficient distribution models.
- Independent alliances with majors.
- Increasing importance of major retailers e.g. Kmart.
- Increases in local output has potential for increasing employment and entrepreneurial opportunities.
- Access to Asian market places, possibility to develop specialized skills to sell into this market.
- Lack of time zone differences within Asian market.
- Growing number of content hungry industries – film, TV.
- Overall growth of the creative industries model.
- Global music market place is in transitional phase.
- A whole of government approach that would address policy development and planning, industry education, integrated information collection, export market development, reinvigoration of the live music scene, financing and investing.
- Increased engagement in creative industries within the political environment
- A number of different research programs undertaken that address some of the identified gaps in data
- ACMI strategically reaching out to new industries e.g. Tech
- ACMI entering a new phase of developing using new technologies.
THREATS
- Process of recording and distributing music is changing rapidly (also an opportunity).
- Perceived level of risk with intellectual property assets and the capacity for the industry to demonstrate the risk return profile of proposed investments.
- Small scale of businesses operating within in the independent sector.
- Operating in an increasingly competitive global and digital market.
- Other smaller countries have established effective well integrated industry – government strategies increasing competition for ACMI within the global market place.
- Significant barriers to export growth including small size of domestic market, difference in attracting investment, high cost of international touring caused by geographic location.
- Distance to key international markets.
- The recorded sector of ACMI has been dominated by the three multinationals, potentially threatening the cultural diversity of output.
- Per unit of primary physical music formats have fallen over time.
- Industry fragmentation can lead to decreased collaboration, long term investment in that economies of scale cannot be captured.
- Withdrawal of live music venues.
- Difficult nationwide legislative hurdles.
- High cost of insurance.
- Security.
- Piracy and lack of control over digital format.
- Current government policies are skewing investment opportunities to particular sectors of the creative industries eg film.
- Overall the ACMI is supported by government in a piecemeal manner.
- Lack of coordination and unified representation within state and territory governments.
- Trend of merging major multinationals threatens the creative diversity.
- Lack of access due to internet access in regional centres.
- Music Industry being associated with alcohol fueled violence
- Required financial link between alcohol and live music
Author
Jane Powles Submitted 17 March 2008.
Updated by Patrick Donovan , President, Australian Music Industry Network. Submitted 29 August 2017.
Australian Music Industry Network.
Patrick Donovan is CEO of Music Victoria.
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