AUSFTA Benefits for the Music Industry
Why Music Exports
Australian music can play a significant export role. Australian music exports such as Silverchair and Savage Garden, can and have, contributed literally millions in export revenues to Australia. Steady on-going work in areas as diverse as musical soundtracks to song writing and of course, performing, can contribute steady income streams to Australia.
In addition, musical exports can play a strong role in promoting Australia beyond its immediate “industry sector” which produces benefits for other sectors, for example tourism.
Thus increasing our artists access to and success in the US market is a critical role for Austrade, now more so than ever under the AUSFTA environment.
The US Market
The US music industry dominates the USD37bn global music market. This complex industry is characterized by its extremely competitive and rapidly changing landscape. While digital file sharing has taken a toll on record company revenues, new methods of music usage and delivery to the consumer promises increased opportunity for both mainstream and niche artists alike.
The AUSFTA will have an effect on both traditional revenue streams like touring, as well as the potential to increase revenue in new digital technologies that have yet to reach the consumers ears.
The AUSFTA
There are 4 main ways that the AUSFTA will benefit musicians and music/entertainment companies engaging in business in the US.
1) Effect on Intellectual Property (IP)
- The AUSFTA will change the term of copyright protection for works (e.g. books, artwork and sheet music), films and sound recordings (phonograms). The term of protection for sound recordings and films will need to be extended from the current 50 years, to 70 years after publication
- Wider criminal provisions for copyright infringement
- Broader protection for electronic rights management
- Protection against a wider range of unauthorized reproductions
- The AUSFTA calls for harmonization of IP protocols, which in an industry experiencing a shift to e-content and consumption of music via the Internet will be increasingly relevant.
2) Effect on duties of physical goods
- The AUSFTA provides for some changes in the duties for certain types of physical products such as bringing in musical equipment. In the past, a duty would have been paid and paperwork would have created an additional hurdle for those bringing equipment not for sale. In this way, the process of touring may be simplified for some artists.
3) Effects on Visas
- With the inclusion of 10,500 E-3 Visas just for Australians, there are some additional opportunities for specialized musicians, as well as specialized occupations within the music industry, which could include employee-sponsored technical recording occupations or executive positions within entertainment/music related companies.
4) Head Turning Effect
- The AUSFTA has created a head turning effect, that is, it is a major news story generating a lot of attention and thought such that those in the music industry here are that much more likely to be looking down under for new talent.
The Austrade Export Market Office
The Australian Music Office has been established in Los Angeles as a result of the AUSFTA. With Austrade continuing to expand its reach in the US, the Australian Music Office is now able to access US decision-makers on a face-to-face basis on more than 19 locations across the country.
The Australian Music Office works with other Austrade posts to promote and ease entry of Australian artists and music companies into the US. The Australian Music Office will identify opportunities, help plan strategy, and expose clients to a network of customers that are normally difficult to access due to geography and industry expertise. Austrade will continue its support of music conferences such as South By Southwest, but also concentrate on cutting edge methods of marketing and promoting music such as digital distribution, podcasts, Myspace.com, film & TV opportunities, EPKs and online street teams.
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