The overall value of Finnish music industry amounted to 779 million euros in 2020. The value dropped with 209 million euros compared to the previous year, despite the growth in record sales and public funding.
In 2020, music industry around the world was hit by the covid-19 pandemic. In Finland, live music performances came to a halt in March, and the restrictions continued throughout the year. Accordingly, the economic value of live music collapsed, which also impacted other sectors. There were severe income losses for artists and musicians, copyright and royalties, as well as many companies and freelancers in the event industry.
Live music sector lost nearly half of its value (now 272 million euros), and copyright royalties diminished by 8 percent (now 91 million euros). Within live music, the private live music sector was hit hardest, and its revenues dropped by 73 percent. The publicly funded institutions were able to maintain more of their operations, and their overall funding reduced by 9 per cent. Altogether, the live music sector lost 240 million euros in 2020 compared to 2019.
However, the retail sales of recordings grew by 4 per cent in 2020, to an estimated 93 million euros. As in other countries, streaming continued to grow even during the pandemic, and the digital consumption amounts now for 89 per cent of the recordings market.
To aid the live music industry and freelance musicians, the government issued several new grants and subsidies, and together with the contribution of private foundations, the amount of grants and subsidies doubled to 60 million euros.
In addition, the overall value includes an estimate of the value of music education, 270 million euros.
The overall value of the Finnish music industry is based mainly on reports published by umbrella organisations 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 (80 million euros in 2020) 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 192 million euros (2020), 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 (58 million euros in 2020), 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 (66 million euros in 2020) and Gramex – The copyright society of performing artists and producers of phonograms in Finland (23 million euros in 2020). 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 (5.5 million euros in 2020). The payments within the sector have been subtracted from the sector value.
Private foundations (including the Finnish Music Foundation) together with the public sector organisations (Arts Promotion Centre Finland and the ministry of Education and Culture), give out grants and subsidies for the music professionals and music organisations. 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.