The overall value of Finnish music industry amounted to 1.25 billion euro in 2022. All the core areas in the Finnish music industry grew, especially the live music sector, recovering from the pandemic. The copyright and recording sectors also grew to a new peak.
In 2022, the value of the music industry increased substantially from the 2020–2021 figures, declined by the pandemic, and was now higher than ever before, a total of 1246 million euro.
The recovery of the live music sector played its part in the growth, as more events were organized now than in previous years. Within live music, the private live music sector almost reached 2019 figures, now amounting to 297 million euro. The publicly funded sector was able to recover more quickly. The combined value of the private and public sectors of live music was now 518 million euro.
The recording sector continued its direction of growth and its retail value can now be estimated at 118 million euro.
Copyright royalties grew by 15 per cent, and copyright income was collected for 110 million euro.
However, the amount of public and private support, which was multiplied due to the corona pandemic, now almost halved, and 58 million euro were distributed in grants. Of this, still almost 24 million euro were covid subsidies.
In total, the value of the core sectors of the music industry in 2022 was 791 million euro.
In addition to the core areas mentioned above, music education is also counted as part of the music industry’s value. The value is now based on a new calculation by the music education sector. Since all statistical information for 2022 is not yet available, the most recent value was estimated based on the previous year. With this information, the value of music education in 2022 can be estimated at 455 million euro.
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 the copyright royalties of live music, are included in both sectors but the double counting is subtracted from the overall value.
Live music is divided into two categories: the private sector and the public sector. The live music private sector (297 million euro in 2022) includes clubs, stage performances, concerts, festivals and other events among others, 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 221 million euro (2022) and includes symphony orchestras, opera and ballet, military music and church music.
Value of the recorded music industry (118 million euro in 2022) is based on the statistics of wholesale value (74 million euro in 2022), 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 (81 million euro in 2022) and Gramex – The copyright society of performing artists and producers of phonograms in Finland (26 million euro in 2022). These collections are then disbursed to the rights holders 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 (total revenue 6.6 million euro in 2021). The payments within the sector have been subtracted from the sector value.
Private foundations together with the public sector organizations give out grants and subsidies for the music professionals and music organizations (58 million altogether in 2022). 42 million euro originate from the public sector and mainly from Arts Promotion Centre Finland and the Ministry of Education and Culture. In addition, other government sectors and the municipal sector have a role in subsidizing the music field. The private support (17 million in 2022) includes the main private foundations as well as the Finnish Music Foundation. Altogether, 24 million euro of grants and subsidies were still covid-related in 2022.
In previous years, the value of music education was estimated at 270 million euro. The estimate was severely out of date, but in the absence of a reliable up-to-date figure, it was used as a reminder of the economic importance of the sector. In 2023, the key players in music education, related to the project Music Education Vision 2030, took up the challenge and created a method for gathering financial data from all levels of music education from schools to doctoral studies. The overall assessment was based on information on the structure and operators of training, and sub-sectoral data were collected using available background information and methods.
At the time of publication of this study, the data is reliably available for 2021 and in partial form for 2022. Therefore, this study has partly used data from the previous year. The data will be updated retrospectively at a later date when more recent statistics are available.
According to the new figures, the combined value of music education in 2021 was EUR 455.7 million, and the estimated amount for 2022 is 454.7 million euros.
The calculation includes the following areas:
Vocational education and training — turnover data collected from educational institutions
Universities of applied sciences — figures estimated on the basis of funding for music education programmes at eight universities of applied sciences
Universities and higher education — data collected from six universities that teach and research music, music education, and musicology
Primary and secondary school — estimate based on the share of music lessons and total expenditure of education
Basic education in the arts — data collected from the Finnish National Board of Education's reports
Liberal adult education — estimate based on reports on music lessons in select institutions and reports on the total expenditure of these educational institutions
Other business — the sum is based on Statistics Finland's turnover data; the share of music was estimated by a previous research