In 2018, the overall value of the Finnish music industry amounted to 945 million euros, representing a 1.5 percent increase year-on-year.
Live music continued to account for around half of the industry's value (479 million euros), while royalties totalled 96 million euros. However, the most robust growth was seen in sales of recordings, up 11 percent year-on-year, and amounting to 81 million euros in 2018. The Finnish recordings market witnessed its fourth straight year of growth, owing particularly to gains made in streaming. Streaming services now account for 85 percent of the recordings market.
In addition to the core sectors, the total value of the Finnish music industry includes grants and subsidies from the public sector and private foundations (28 million euros), as well as the estimated value of music education (270 million euros).
The overall value of the Finnish music industry is based mainly on reports published by umbrella organizations in the industry. However, in order to make the sector values comparable with each other, some revenue streams have been converted into consumer values, that is, prices paid by consumers for live music events or recordings, and fees paid by music users as royalties, including VAT where relevant.
The payments from one industry sector to another, for example copyright royalties of live music, are included in both sectors but the double counting is subtracted from the overall value.
Live music is divided in two categories: the private sector and the public sector. The live music private sector (272.4 million euros in 2018) includes for example clubs, stage performances, concerts, festivals and other events, and was estimated on the basis of copyright royalties collected by Teosto. These are approximately 3.5 percent of the overall ticket sales, which in turn constitutes about 70 percent of the overall turnover of live music events. The public sector amounts to 206.7 million euros, and includes symphony orchestras, opera and ballet, military music and church music.
Value of the recorded music industry is based on the statistics of wholesale value, provided by Musiikkituottajat – IFPI Finland. This value is added by the retail sales margin and VAT, estimated at 161 percent of the wholesale value.
The copyright revenues are collected by Finnish Composers’ Copyright Society Teosto (70.1 million euros in 2018) and Gramex – The copyright society of performing artists and producers of phonograms in Finland (23.5 million euros in 2018). These collections are then disbursed to the rightsholders of musical works and recordings. In addition, the overall copyright revenues include the direct licensing and sheet music sales by the Finnish Music Publishers Association (5.9 million euros in 2018). The payments within the sector have been subtracted from the sector value.
Private foundations (including the Finnish Music Foundation) together with the public sector organizations (Arts Promotion Centre Finland and the ministry of Education and Culture), give out grants and subsidies for the music professionals and music organizations. In addition, the municipal sector has a role in subsidising the local professional music field.
The value of music education has been estimated by Aku Alanen from Statistics Finland. The value is not updated yearly.