State and government funding for performing arts venues has fluctuated over the past five years.
Melbourne, Australia (PRWEB) August 24, 2014
Performing arts venues in Australia depend on government funding and strong demand from live music and theatre production companies. The number and size of performances staged is directly influenced by demand from consumers for live music and theatre productions, which has increased over the past five years due to higher real household discretionary income. According to IBISWorld industry analyst Jem Anning, “the higher numbers of attendees at performing arts events and higher ticket prices have translated into greater revenue from box office sales.” As a result, industry revenue is estimated to increase at an annualised 3.1% over the five years through 2014-15, to reach $771.4 million. Industry growth over 2014-15 is forecast to slow to 1.7%, as the industry matures.
Industry operators depend on government and corporate funding to remain financially viable. Many performing arts centres aim to break even and are funded due to their perceived benefit to the community. As a result, any changes in operating costs or government funding can significantly affect the operations of performing arts venues. State and government funding for performing arts venues has fluctuated over the past five years, and so “industry operators have looked to businesses to steady cashflows by expanding product offerings to include more private functions and focusing on corporate sponsorship,” says Anning. High levels of government and private investment in the refurbishment of industry venues over the past five years are expected to lead to increased maintenance costs over the next five years. While government funding for heritage and arts enterprises is expected to increase, state governments are likely to come under pressure to rein in spending due to budgetary constraints, and this may lead to subdued funding growth for performing arts venues. Continued competition from other recreational activities such as sporting events and cinemas will constrain industry growth.
The Performing Arts Venues industry has a low concentration level, with no single company dominating the industry. The industry is characterised by a small number of large, well-known venues, such as the Sydney Opera House and Arts Centre Melbourne, and a large number of small-scale operations. Performing arts centres located in major capital cities can attract high attendance numbers, with residents and domestic travellers visiting such venues. At the other end of the industry, small venues survive with low patronage and volunteer or part-time workers. Market share concentration is expected to remain low over the next five years.
For more information, visit IBISWorld’s Performing Arts Venues industry in Australia report page.
This industry includes companies that operate performing arts venues across Australia.
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