Urgent Warning: Australian Music Industry Faces Collapse, Advocacy Group Says

Henrik Larsen

6 min read

Post on May 29, 2025

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Dwindling Revenue Streams Threaten Artists' Livelihoods

Declining revenue streams are choking the lifeblood out of the Australian music scene, leaving many artists struggling to survive. The challenges are multifaceted, stemming from the impact of streaming services, the decline of live music revenue, and the ever-increasing costs of production and promotion.

The Impact of Streaming Services

Streaming platforms, while offering unprecedented access to music, have fundamentally altered the economic landscape for artists. Low royalty rates paid per stream leave many musicians earning a pittance, barely enough to cover their expenses.

• Abysmal Royalty Rates: The average artist earns significantly less than $0.003 per stream on major platforms like Spotify and Apple Music. This pales in comparison to the revenue generated per stream for the platforms themselves.
• International Disparity: Compared to international markets with stronger artist advocacy and legislation, Australian artists receive a disproportionately low share of streaming revenue.
• Unequal Negotiating Power: Independent artists often lack the bargaining power to negotiate fair deals with these multinational corporations.

The Decline of Live Music Revenue

The COVID-19 pandemic dealt a devastating blow to the live music sector. Lockdowns and restrictions led to widespread venue closures, cancelled tours, and a dramatic reduction in gig opportunities. While some recovery has occurred, the sector remains fragile.

• Venue Closures: Numerous iconic Australian music venues permanently closed their doors during the pandemic, significantly reducing performance opportunities.
• Reduced Gig Opportunities: Even with venues reopening, the number of gigs available to artists hasn’t returned to pre-pandemic levels.
• Increased Costs: Staging live performances now entails higher costs for artists, including increased insurance premiums, venue hire fees, and equipment maintenance.

The Rising Costs of Production and Promotion

Creating and promoting music in today's digital age is expensive. Artists face increasing pressure to maintain a professional online presence, often requiring significant investment in marketing and professional representation.

• High Studio Rental Costs: Recording high-quality music requires access to professional recording studios, which can be prohibitively expensive.
• Expensive Marketing Campaigns: Reaching target audiences necessitates substantial investment in digital marketing, social media promotion, and potentially public relations services.
• Need for Professional Representation: Securing representation through agents, managers, and publicists adds further financial pressure on artists.

Lack of Government Support and Funding

The Australian government's insufficient support for the arts and culture sector exacerbates the challenges faced by the music industry. Inadequate funding for arts programs and a lack of support for emerging artists create a difficult environment for creative professionals.

Insufficient Funding for Arts Programs

Funding cuts to arts grants and initiatives have severely hampered the industry's ability to thrive. The amount of government funding allocated to the Australian music industry lags significantly behind many other developed nations.

• Funding Cuts: Successive government budgets have seen cuts to vital arts funding programs, limiting opportunities for artists to receive financial support.
• Sectoral Comparison: Comparing Australian government arts funding to that of similar countries reveals a significant funding gap, putting Australian artists at a competitive disadvantage.
• Impact on Artist Development: Reduced funding has led to the scaling back or cancellation of crucial artist development programs, impacting the next generation of talent.

Inadequate Support for Emerging Artists

Emerging artists struggle to secure the funding and mentorship they need to launch their careers. The lack of accessible resources and support networks contributes to a high attrition rate in the industry.

• Grant Access Difficulties: Securing grants is often a highly competitive and complex process, with many emerging artists missing out on vital funding.
• Lack of Mentorship: Access to experienced professionals who can provide guidance and support is limited for many emerging artists.
• Building a Sustainable Career: The challenges of building a sustainable career in the face of these obstacles leads to many talented musicians abandoning their pursuit of a music career.

Calls for Industry Reform and Government Intervention

The AMA's report calls for urgent action to address the systemic issues plaguing the Australian music industry. These calls include fairer streaming royalties, increased government funding, and strengthened copyright protection.

Fairer Streaming Royalties

The AMA advocates for legislation that mandates fairer royalty payments from streaming services to artists. This would involve a significant redistribution of revenue from platforms to the creators of the content.

• Proposed Legislative Changes: The AMA proposes specific legislative changes that would ensure artists receive a more equitable share of streaming revenue.
• International Best Practice: The AMA points to successful models from other countries that have implemented legislation to protect artists' interests in the digital music market.
• Economic Benefits: Implementing fairer royalty schemes would stimulate the economy by boosting artist incomes and fostering greater creativity and innovation.

Increased Government Funding for Arts and Culture

The AMA calls for a significant increase in government funding for arts and culture, including targeted support for the music industry. This funding is crucial to support artist development, infrastructure, and industry growth.

• Suggested Funding Levels: The AMA has proposed specific funding levels based on a comprehensive analysis of the industry's needs.
• Economic and Social Benefits: Increased government investment in arts and culture would not only benefit the music industry but would also contribute positively to the Australian economy and social fabric.
• Examples of Success: The AMA showcases successful government arts initiatives from other countries that could serve as models for Australia.

Strengthening Copyright Protection

Addressing the rampant issue of music piracy is critical to the financial health of Australian artists. Strengthened copyright protection is crucial to ensuring artists receive fair compensation for their work.

• Proposed Legal Reforms: The AMA suggests various legal reforms to improve copyright enforcement and protect the intellectual property rights of Australian musicians.
• Impact of Piracy: Piracy has a devastating impact on artist income, undermining their ability to earn a living from their music.
• Role of Online Platforms: The AMA calls for greater collaboration with online platforms to develop effective mechanisms for combating music piracy.

Conclusion

The Australian music industry is facing an unprecedented crisis. Unless urgent action is taken to address the issues of declining revenue, inadequate government support, and the need for industry reform, the future of Australian music is in jeopardy. The AMA's report serves as a stark warning. We must act now to save the vibrant tapestry of Australian music. Contact your local Member of Parliament and demand greater investment in and fairer policies for the Australian music industry to prevent its collapse. Let's work together to ensure the survival of this vital cultural sector for generations to come. Support your local musicians and demand #SaveAustralianMusic.