Is New York the Center of the Music Industry Universe?

Is New York the Center of the Music Industry Universe?
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Is New York the Center of the Music Industry Universe?
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ConstantinAB (CC by 2.0)

A study sponsored by New York City shows New York City has the world’s largest music ecosystem. Would a similar study sponsored by another major city find the same?

A new study published by the Mayor’s Office of Media and Entertainment (MOME) highlights the role New York has played in the music industry. Conducted by Boston Consulting Group, the study found New York as the home of the largest and most influential music ecosystem.

Per the study, New York City supports nearly 60,000 jobs and accounts for roughly $5 billion in wages. In addition, the Big Apple also generates a total economic output of $21 billion. The study cites four major pillars as the reason why New York sustains a strong music ecosystem:

  • Local artist communities
  • Mass music consumption
  • The global record business
  • Infrastructure and support services.

The four pillars directly generate approximately 31,400 jobs, $2.8 billion in wages, and $13.7 billion in economic output. MOME also states that NYC’s music industry has an indirect economic impact in the music industry. Through transactions with suppliers and vendors, the impact amounts to approximately 10,100 jobs, $900 million in wages, and $3.4 billion in economic output. The NYC music industry’s ancillary economic impact amounts to $400 to $500 million from tourism spending specific to music-related events. In total, NYC created and sustained 57,500 jobs, $4.7 billion in wages, and had a $21 billion economic output.

In addition, according to MOME, New York City “outperforms national trends.” While the nation sees an overall decline in record business jobs, NYC has experienced a 2% growth per year. Music related jobs and wages also outgrew the local city’s economy.

New York City has also outpaced other cities in regards to live music ticket sales and music industry wages. The Big Apple has also better supported music related digital start-ups. The city also has a worldwide lead with over 5 million annual tickets sold.

Per Boston Consulting Group, the city also remains strong due to “the presence of so much local talent.” Yet, the report outlines clear opportunities for the local government to strengthen NYC’s worldwide music industry lead. It states the local city government could:

  • Support and help to build thriving local artist communities.
  • Create more performance opportunities for local artists.
  • Increase the economic impact of mass music consumption.
  • Harness and expand the presence of digital music services.

By receiving local government support, NYC can continue to “foster a brighter future.”

9 Responses

  1. music stowaway

    If we were to narrow it down to the recored music business then I would say
    Los Angeles is the capital for Hit Music songwriting and record productions.

    L.A. has the hit music creative teams and anyone who is after pop/radio hits will go to where the hit makers are.. which is Los Angeles, California.

    For country and it’s various amalgams/hybrids then Nashville, Tennessee is the place.

    For European based artists – they’ll usually head off to London or to the private
    studios of British hit producers tucked away deep in the picturesque English countryside.

  2. Sholomo returns

    The financial departments of NYC labels are across the water in NJ to keep artists from running in the buildings and beating the shit out of the accountants. You won’t know this unless you get your hard earned money stolen from them. NYC labels think they’re cooler than the artists.

  3. Sholomo returns

    I wish they would do a story ok how much money they still from artists

    • ha ha ha ha ha ha ha ha

      ATL?… Ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha …[breadth]…ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha!

  4. Anonymous

    LA, NY and Nashville have always been considered the three main music industry cities, and I don’t think that’s changed much. There’s too much going on in LA and Nashville to consider NY to be the center of it all. But yeah, it’s certainly up there.

  5. music stowaway

    I tend to now think of New York City as a financial center, a place for billionaires
    working in Hedge funds, Ponzi schemes, Stock Market Trading, Real Estate
    speculation and other financial dealings.

    Since the money people have moved into NYC the cost of living in nice
    neighborhoods has sky rocketed with rents beyond most independent musicians means.

    Unless you want to co-dwell in a one bedroom apartment with four others.. I think NYC has lost it’s shine, and same with San Francisco with it’s influx of tech
    billionaires taking over the city as well as wealthy foreigners.

    However, Los Angeles is still affordable and if you want to be a hit maker then
    it’s where it’s at.

    Plus you have access to the Movie and TV content creation businesses, great weather, great food choices, an amazing lifestyle so long as you have your green card or work permit.

  6. noah

    Labels still have NY offices and so do music tech companies but the labels that have offices there tend to be more on the admin side and not decision makers. The parts of the industry that are putting content out are more focused in LA.