NYC Releases First-Ever Music Industry Economic Impact Study
If you’re an NYC area audio pro, you’ve probably been wondering how big of a local pie you’re getting a slice of. Now you have your answer, courtesy of a comprehensive new study that was just released by Mayor Bill de Blasio and Julie Menin, Commissioner of the Mayor’s Office of Media and Entertainment (MOME).
The City of New York has just released the very latest data on music business throughout the region.
According to the study, conducted by Boston Consulting Group, the overall New York City music industry represents a significant economic engine: all told, it supports 60,000 Jobs, $5 billion in wages and $21 billion in economic output. Further, this is a vertical whose growth outpaces that of the local economy, with music-related jobs and wages growing at annual rates of 4 and 7 percent respectively – that’s compared to 3 and 5 percent in the City overall. As a result of these findings, NYC stands among the largest music ecosystems in the world, and could possibly be the largest.
The study drills down into four key aspects of NYC’s music business from there. These include local artist communities, including smaller venues and rehearsal spaces; mass music consumption, which includes larger venues, radio stations, and retailers; the global record business, comprised of labels, publishers, and managers; and infrastructure and support services, including recording studios, lawyers, and various other professionals.
It’s that last bucket that the audio industry is most interested in. There, the study finds 4,100 jobs, $400 million in wages, and $1.3 billion in economic output. The report goes on to say:
This segment of the ecosystem accounts for a relatively small portion of direct jobs, wages, and economic output (roughly 10 percent or less for each of these metrics). It has also been experiencing modest to no growth. The culprit: industry trends. Traditional print media and studio recording have been impacted by new digital technologies and preferences.
Recording studios in New York City
The growth of ‘do-it-yourself’ recording, for instance, has contributed to declines at the city’s recording studios. As one record label executive notes, ‘anyone with a MacBook Pro and a soundproof room can make a record today.’ Yet, overall, New York City’s traditional recording studios have fared better than their counterparts in other music cities. Local demand for recording podcasts, TV voice-overs, Broadway albums, and other types of sound recording work has helped stem – to a degree – the declines.
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On the surface, it sounds like a fair assessment (SonicScoop co-founder David Weiss was one of the people interviewed to prepare the study), however the data also raises deeper questions. What constitutes a “job” in an industry where multiple freelancers often work at multiple facilities, for instance. How were the wages measured, as well as the total economic output?
Still, the mayor’s office deserves kudos for focusing time and resources on examining New York City’s music industry. What will be the action items that result from here, and can they benefit audio practitioners in the music business as a whole? For more clues and perhaps some ideas of your own, see the city’s official press release, and/or read the full 56-page report.
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