NSW has lost its mantle as the nation's biggest live performance industry, with Sydney's shortage of theatre venues blamed for shows in Victoria drawing more people and revenue for the first time.

Live shows in NSW attracted 6.9 million people and $616 million in ticket revenue in 2017, compared with 7.5 million people who spent $639 million on performances in Victoria.

Live music industry advocates have called for greater investment in Sydney's cultural venues to draw more major theatre shows. Credit:Christopher Pearce

Victoria's surging audience and revenue share was driven by the popularity of Melbourne's musical theatre shows, according to a Live Performance Australia report on ticket attendance and revenue.

The attendance figures, released publicly on Thursday, have reignited calls from the entertainment industry for more commercial theatre venues to be built in Sydney to help draw major shows.