Department of State Development

The South Australian music industry has encountered significant barriers to growth in recent years. 


The introduction of poker machines and the change to liquor licence laws had a major impact on live music venues.  In addition, the music industry historically has been disconnected, where collaborations are non-existent and practitioners are intensely competitive.

Technology has also had an immense impact on the music industry globally and traditional business models have been challenged.  Historically, artists monetised their art by creating a CD and selling it through multiple channels.  Now, artists must make their music available through streaming websites. However, the income from streaming sites is floored, where artists are, for the most part, unable to derive even the minimum wage from streaming royalties.

Traditional income streams have dried up and music businesses have been forced to look at other ways to succeed. This is not only the case for the music industry in Australia, it is a global issue.

In 2012, the State Government introduced a “Thinker in Residence” program focussed on the South Australian music sector. This program resulted in a number of significant initiatives that have now been introduced into the local music sector. One of which was the formation of Musitec to manage the music industry cluster.

On 28 July 2014, Musitec began its operations as the first music-focussed industry cluster in the world.  Its purpose is to search globally for industry opportunities that local capabilities could fulfil through collaborations.

Music is no longer an isolated industry, it is embedded with the technology industry.  Therefore, Musitec’s approach is for both industries to collaborate. 

“We have built a broad base of global leaders not only within the music landscape but also within high level technology and developer industries,” said Mr David Grice of Musitec.

Within the first six weeks of operation, Musitec delivered a series of industry development workshops and networking events.  But the focus wasn’t just local, Musitec have attended the International TCI conference, connected with the international music industry at large, and have attended a global think tank for the music industry.

“Through these events Musitec have begun to see significant results by developing community amongst practitioners and the beginnings of significant collaborations are being formed,” Mr Grice said.

While continuing Musitec’s community building efforts, its next steps are to implement a program which brings the tech community together with music businesses, and to develop new companies and ideas which will drive economic value for the State. In addition, Musitec will continue to grow its global presence by attending several international conferences.

For more information, contact Musitec