Higher levels of household discretionary income have increased consumer spending on music and theatre shows.
Melbourne, Australia (PRWEB) August 20, 2014
Operators in the Music and Theatre Productions industry in Australia have been thriving over the past five years due to higher household discretionary income and government funding. Sources of revenue for the industry can be broken down into box office sales, government grants, private donations and corporate sponsorship. According to IBISWorld industry analyst Jem Anning, “over the past five years, higher discretionary income has increased attendance at live and theatre productions.” This, along with higher ticket prices, has driven box office sales and industry growth. Meanwhile, government funding for performing arts companies has increased. As a result, industry revenue is estimated to increase at a compound annual rate of 3.1% to $1.2 billion over the five years through 2014-15, including growth of 2.5% in the current year.
Revenue growth over the past five years has been driven by higher consumer sentiment following the global financial crisis and increasing demand for popular music concerts. The Music and Theatre Productions industry has expanded as consumers loosened their purse strings and more music groups toured Australia. “Revenue fluctuates according to changes in government funding and the ability of industry operators to stage big-name and popular shows,” says Anning. Government funding varies significantly between product segments, with the traditional performing arts receiving more in government grants than popular music. Many performing arts companies rely on government funding and corporate sponsorship to remain financially viable, while popular music providers are highly profitable. The industry exhibits a low level of market share concentration. Major players include Opera Australia.
Revenue growth is expected to slow over the next five years as the industry matures. While government funding for heritage and the arts is forecast to grow, the Federal Government has signalled its intention to rein in spending on the arts due to budgetary constraints. IBISWorld forecasts a slight shift in industry operators' funding models, which are expected to have a greater focus on private donations and corporate funding. Traditional arts companies will continue to attempt to expand audiences through regional touring, and using technology in new and innovative ways.
For more information, visit IBISWorld’s Music and Theatre Productions industry in Australia report page.
Companies in this industry produce live theatrical or musical performances including concerts, opera, ballet and drama plays.
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