Finland’s music exports have grown several times over in the last decade

Internationally successful Finnish acts have attracted hundreds of new operators into the music exporting business

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Finnish music exports achieved their all-time best result in 2009, indicates a study commissioned by Music Export Finland (Musex).
      For 2009 the overall market value of music exports was estimated at EUR 32 million, which indicated a growth rate of 38 per cent (EUR 9 million) from the year before.
      The 2009 figure also eclipsed that of the previous peak year of 2005. Back then the music exports industry was estimated as having amassed nearly EUR 29 million in sales revenue.
      From the national economy point of view the sums are still miniscule, but within the music industry such export figures would have been a sensation ten years ago. In 1999 the value of Finnish music exports was estimated at no higher than EUR 3.8 million.
     
Most clearly the new study speaks of the growing number of new entrepreneurs within the music exports sector.
      At the turn of the millennium, when the Finnish music industry was enjoying its first-ever international chart successes, there were only a couple of dozen operators in the field.
      “When Musex was launched in 2002, only 15-20 businesses were involved in the effort”, reminisces Pauliina Ahokas, the director of the organisation which promotes Finnish music industry exports.
      “Last year 296 Finnish companies were actively involved in our export projects. Not all of them earn millions from overseas sales, but even sums that are in hundreds of thousands will form larger streams when the number of companies earning such figures is great enough.”
     
This is largely a question of the recent Finnish international success stories - bands such as HIM, Children of Bodom, Apocalyptica, Nightwish, or The Rasmus - having encouraged other bands and even the backing operators to invest in going international.
      In the gigs organised by Musex alone, 88 Finnish bands made international appearances last year.
      “Obviously what comes first is that there are both products and demand for them”, Ahokas reckons.
      “Furthermore, with knowhow and networking, exporting has become easier. Music exports are not only a question of licencing a certain artist’s records abroad. There are also for example companies that develop distribution networks as well as different types of service and technology firms in the mix. “
     
Because no comprehensive records exist with regard to music export results, the study conducted by Media Clever was based on a survey among the businesses in the field.
      The questionnaire was replied by 96 companies, among which there were some key operators in the business, such as multinational record companies, the firms representing the largest artists, and the copyright organisations.
      “As we have been very careful with our estimates, we can establish that the value of music exports in 2009 was at least this EUR 32.1 million”, emphasises research director Janne Silvonen.
      The nature of the survey also offers an explaination for at least part of the notable growth.
      This time around the artists’ own companies’ revenue streams were covered more comprehensively, and this shows as triple growth in the selling-of-wares sector.
      The services and copyright compensations sectors, on the other hand, experienced a slight decline in revenue from the year before.
      “The artists seem to have reported all the income in the wares sector”, Ahokas offers as an explanation.
     
The study confirms that the strongest markets for Finnish music are found in Europe.
      The Nordic Countries account for 21 per cent, German-speaking Europe 18%, France and the Benelux Countries 12%, and the British Isles 11% of the sales of Finnish music.
      The United States’ share is 10% and Asia’s 7%.
     
Although the Finnish music exports have moved forwards with decent strides in the past ten years, the western neighbour Sweden is still light years ahead.
      “The value of the Swedish music exports is something like EUR 700 million, but I have never come across a study that would confirm that the Swedes are genetically more talented in the musical department than the Finns”, Ahokas laughs.
      The cornerstone of Sweden’s success is professional songwriters, who write or produce hits for international stars. Only recently have the Finns awakened to this possible avenue to success.
      “We lack songwriter training completely. For example in Sweden, Norway, and Denmark such training exists”, says a wondering Ahokas.


Links:
  Finnish Rock (Wikipedia)
  Musex

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