Music’s impact is most often seen through culture, connection, and the powerful emotions it stirs. But new research from Secretariat Managing Director Robert Stoner and Director Jéssica Dutra describes the significant financial benefits music drives in communities all across America.
According to this new report reflecting data provided by independent labels, performing rights organizations, independent venues, music museums and other organizations across the US, the music industry is a powerful driver of US economic prosperity and growth that contributes $212 billion to the GDP (5.7% annually from 2017-2020) and accounts for 2.5 million jobs. The report’s detailed state-by-state breakdown provides an even sharper window into how recorded music is an economic engine rippling through the broader ecosystem from venues, festivals, brick-and-mortar stores, digital platforms to artists, songwriters and music schools, among others. Explore each state here.
Mitch Glazier, RIAA Chairman & CEO says,”RIAA is proud to lead this ongoing effort to document music’s role and impact across the 50 States, but it wouldn’t be possible without the support of our partners across the music ecosystem — from local haunts, workforce unions and performance rights organizations to our fellow associations and industry groups that fight every day to put music and the people who make it on a strong and sustainable policy footing.”
The top six states for each of the relevant measures (earnings, employment, and value added) are: California, Florida, New York, Pennsylvania, Tennessee and Texas.
• California: music contributed more than $51.4B as fans flocked from Coachella to the Troubadour – just two of the notable 80,433 music establishments – and 416,802 students expanded their talents across the state
• Florida: Latin, Pop and Southern Rock fuel the scene that supports 169,706 jobs and adds $9.3B to the US GDP
• New York: the birthplace of Hip-Hop generated $24.9B in music industry value in 2020, resulting in 1.3x the rate that music contributes to US GDP and adding 210,878 jobs to the market
• Pennsylvania: with 114,731 jobs supported and 6,715 royalty recipients, the state brings $6.3B to US GDP
• Tennessee: home to 74,289 songwriters in Nashville, Memphis and cities in between, music industries hit $7.5B and contributed nearly twice as much to the state’s GDP (1.7%) as the national average (0.9%)
• Texas: beyond the Austin City Limits, this melting pot hosts 127,993 songwriters and pumps $26.6B into the economy
With the largest music economy in the world, and accounting for more than a third of the world’s recorded music revenues**, this research further exemplifies how local economies play a role in the broader context. Notable findings include:
• Music industry employment grew 1.9% between 2017-2021, compared to US employment growth that stayed constant for the same period.
• Direct employment increased from 1.127 million in 2017 to 1.318 million in 2020. Indirect/Induced employment grew to 1.222 million in 2020.
• Direct earnings increased from $39.9 billion in 2017 to $46.3 billion in 2020, while Indirect/Induced earnings increased to $63 billion in 2020.
This report uses the latest consolidated data available at this scale and covers periods both before and after the onset of COVID in March of 2020. While there is better understanding of pandemic effects, “it is still difficult to fully understand or measure the myriad of impacts it had on the economy broadly and the music industry specifically. For example, we’ve already seen the live music industry virtually shut down in 2020 but more recently return to pre-pandemic levels.” The music industries continue to evolve to meet consumer needs and innovate even in unexpected circumstances.
More recently the increasingly digitalized world and rapid AI development means the music industry’s contribution to the digital economy is not confined simply to streaming. At mid-year 2024, RIAA reported recorded music revenues grew by 4% to $8.7 billion in estimated retail value and reflected the highest number of sources to date as fans continue to discover and listen to music in more ways than ever. The range of services from wellness and fitness apps to podcasts, gaming, and unexplored ways will only expand in the age of AI as human creators innovate using responsible tech.
Yet the vitality of live music is still high and plays a prominent role coast-to-coast. For example, Live Nation hit another record-setting H1 2024 with total revenue growing 12% to $9.8 billion, number of events growing 16.9% to 25,881 and the number of fans at their concerts and festivals rising 10.4% to 61.8 million (source: Billboard) while Luminate reported Gen Z spending more than others in Q2 2024 with an average of $38 per month. The appetite for music access in all forms is clear, and the economic impact profound.
RIAA Chairman & CEO Mitch Glazier offers additional perspective on the report here.
