Last week, I had the opportunity to visit Vilnius Muzikos Salė, Lithuania’s premier music industry event, where I participated in a series of discussions focused on strengthening Lithuania’s music sector. The event, which serves as a key platform for industry professionals, artists, and policymakers, was an ideal setting for high-level conversations about the future of the country’s music economy.
On Thursday, February 27, I was invited by Agnė Begete, CEO of AGATA, Lithuania’s recorded music industry association and neighbouring rights society, to meet with government representatives and industry leaders to discuss state support for the music industry. My role was to help set the stage by outlining the fundamental structure of a music industry—its economic value, the role of intellectual property (IP) rights, and how governments can support its sustainable development.
The following day, Friday, February 28, I took part in a panel discussion on music export, further exploring how Lithuania can position itself as a player in the global music economy.
The Music Industry as a Rights-Based Economy
A key point I emphasised during the government meeting was that the music industry is fundamentally an IP-driven sector. Its economic value is generated through copyright and performance rights, monetised via various licensing models. This core foundation is surrounded by an extensive support ecosystem—recording studios, video production, choreography, and live event infrastructure—all of which contribute to the overall economic impact of music.
Beyond this, music’s reach extends into a vast network of users—venues, broadcasters, streaming platforms, advertisers, and social media—all of whom rely on music to generate their own revenues.
Understanding this structured value chain is crucial for shaping government policy. While Lithuania does track some financial data on the music sector, a comprehensive national economic impact study has never been undertaken. Supporting AGATA in spearheading such a study would be an important next step in recognising and quantifying music’s full economic contribution.
Government Roundtable: Defining Music’s Economic Role
At Vilnius Muzikos Salė, AGATA hosted a government and industry roundtable to explore how policymakers can better support Lithuania’s music sector. The discussion covered the importance of structured economic measurement, the role of accurate industry classification, and how government investment can drive long-term growth.
A key focus was how Lithuania’s tax and reporting structures classify music industry activities. In the UK, outdated Standard Industrial Classification (SIC) and Standard Occupational Classification (SOC) codes historically failed to reflect the true structure of the modern music industry. After years of lobbying, adjustments were made to properly classify businesses and individuals working in music. Lithuania faces a similar challenge, where incorrect classification leads to underreported economic contributions, which in turn affects policy decisions and funding opportunities.
The importance of investment was another major talking point. For Lithuania’s music sector to thrive, there must be a strategic approach to funding—not just for artists, but for infrastructure, export strategies, and education.
AGATA has provided a summary of the roundtable discussion on their website here: AGATA Discussion on Music Industry’s Economic Role: Clear Methodology and Investment Are Essential
Live Music: Value Extraction vs. Value Generation
Another key discussion point was live music’s role in the economy. There was strong enthusiasm for hosting larger international concerts in Lithuania, but the challenge is ensuring that these events generate value within the country rather than simply extracting it.
When large international concerts take place, the revenue often flows outward—to foreign artists, foreign production teams, and international ticketing platforms. While such events are great for tourism, they do not inherently strengthen Lithuania’s own music sector.
The real opportunity lies in building export capacity—developing artists for international markets, supporting domestic production and support services, and positioning Lithuania as a hub for music business expertise. Without an outward-facing strategy, much of the financial benefit of live music will continue to flow abroad instead of contributing to long-term industry sustainability.
Music Export: Lithuania’s Global Potential
On Friday, February 28, as part of Vilnius Muzikos Salė, I joined a panel discussion on music export, focusing on how Lithuania can develop structured strategies to expand its music internationally. The discussion went beyond just artist export, looking at how government support can help music businesses, labels, and rights holders engage more effectively in the global market.
The full panel session, Lithuanian Music’s Future: Local Starts to Global Charts, is featured on the Vilnius Muzikos Salė website here: Lithuanian Music’s Future: Local Starts to Global Charts
Panel Participants:
A key takeaway from this session was the need for clearer understanding of export potential, and supporting strategies—not just for artists, but for the entire support ecosystem that enables music export, including labels, managers, and service providers such as recording studios.
Laying the Foundations for Change
The discussions at Vilnius Muzikos Salė made it clear that Lithuania has a strong and ambitious music industry that is eager to grow. However, three key issues must be addressed for the sector to reach its full potential:
By supporting AGATA’s efforts in economic research, improving government reporting structures, and shaping export-driven policies, Lithuania can build a stronger, more competitive music industry—one that thrives domestically while expanding onto the global stage.
With ongoing engagement from key government figures, there is a real opportunity to shape policy and create long-term impact. I look forward to seeing how these discussions evolve and continuing to support Lithuania’s music sector in the years to come.
L-R: Rauno Haabmets (EEL Estonia), Agnė Begete (AGATA Lithuania), Rob Gruschke (Beggars Group UK), Charlie Phillips (PTR UK).