THE FIRST COMPREHENSIVE REPORT ON THE VALUE OF FINNISH MUSIC EXPORTS RELEASED
- Music exports grew five-fold over two years, generating 15,5 million euros in 2001
Companies and organizations in the Finnish music industry joined forces in order to collect data on the unprecedented growth of Finnish music exports in the recent years. Previously there has been only few statistics regarding music exports in Finland, mainly on copyright royalties. The new Finnish music export office Music Export Finland initiated a research in May which was conducted by Media Clever Oy. The research embraces the entire earning logic from sales of goods and services to all copyright royalties in the year 2001. The combined value of these sectors comprises the aggregate value of exports.
The data was collected by the Finnish National Group of IFPI Association, Finnish Music Publishers Association, and Music Manager’s Forum Finland Association. Furthermore, the Finnish Composer’s Copyright Society Teosto, Nordisk Copyright Bureau (NCB) and Copyright Society of Performing Artists and Phonogram Producers in Finland announced data findings. Media Clever Oy collected information from sectors and companies that are not included in the aforementioned organisation data. With this report both the industry and interest groups gain information about areas of development alongside the structure of the exports.
This study contains information only on the music exports and the money flows returning to Finland from these exporting activities. The aggregate impact of the music industry as a whole is far more significant to the Finnish economy.
Strong growth implies time for export investments
Finnish music exports has grown remarkably in the last few years. This growth is present in all the sectors of the earning logic. The sales of goods has grown from 1999 level to 2001 a staggering 370 percent and based on the answers given by the Finnish companies in this study, the growth is expected to sustain. The sales of goods is comprised of record sales, cd production, royalties, licensing of records and publishing contracts. The total value of goods exports in 2001 was appr. 7,2 million euros.
The significance of services, such as concert and touring activities and video production has not been previously studied in Finland. This sector is, however, worth over 3,5 million euros. The copyright royalties to composers from the public performances of Finnish music abroad nearly quarupled from 1999. All the copyright royalties combined totalled 4,7 million euros in 2001.
According to the survey the aggregate value of Finnish music exports in 2001 was 15,417,315 euros. This means that the significance of the music exports has increased both culturally and economically in Finland. The growth is the result of the enormous successes of a few artists, but also the licensing of the Finnish artists which has grown steadily. (Source: IFPI Finland statistics 1994, 1999 and 2001.)
The study also analysed significant sales markets. Even though Finnish music is predominantly played in the Nordic countries (54 % of the copyright royalties come from the Nordic countries), the GSA are and the UK are steadily becoming the most important markets for sales of goods and services. Therefore a remarkable growth of copyright royalties from these countries can be expected.
The success so far has created a strong basis on which to build development of Finnish music exports. With goal-oriented action and sufficient investments music can become one of the most important export products and a significant employment factor in post industrial Finland.
Further information:
Music Export Finland, Paulina Ahokas, Director
Email: paulina.ahokas@musexfinland.fi
Gsm: +358 (0)40 5511 551
Media Clever Oy, Sami Vehkaluoto, Research Director
Email: sami.vehkaluoto@mediaclever.fi
Gsm: +358 (0)40 8389 428