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.”