Belmont University and the Nashville Area Chamber of Commerce today released a new study showing the total economic impact of the music industry in Nashville is $6.38 billion. The study, The Economic Impact of the Music Industry
In the Nashville-Davidson-Murfreesboro MSA, is the first ever to assess the economic impact of Music City’s signature industry It was commissioned by the Chamber and its Music Associations Task Force and conducted by the Jack C. Massey Graduate School of Business at Belmont. The university, located just off Nashville’s famed Music Row, is home to the nationally renowned Mike Curb College of Entertainment & Music Business.
“For the first time in Music City, everyone from policymakers and businesspeople to entertainers and everyday citizens will be able to grasp the true economic value of the music industry,” said Dr. Patrick Raines, dean of the college of business and professor of economics at Belmont University. “Until now, we’ve mainly focused on the entertainment value, which is very, very significant. But supporting statistics are important too, and this economic impact study provides a conservative but very holistic view.”
Raines led the study along with Dr. LaTanya Brown, a former economics instructor at Belmont. Findings represent the economic impact of the music industry in the Nashville-Davidson-Murfreesboro Metropolitan Statistical Area (MSA). The assessment covered all major music genres (e.g., Country, Christian, Gospel, Classical, Jazz, Bluegrass and Americana); professional organizations (e.g., Country Music Association, Gospel Music Association and National Academy of Recording Arts and Sciences); record labels (major and independent); music performing rights organizations; music venues; music media; travel and hospitality; artist management and booking; and associated businesses (legal and accounting services).
Economic Impact – Direct spending by music industry firms in Nashville totaled $2.64 billion. The combined impact of direct and secondary spending totaled $3.96 billion. Music-related tourism accounts for another $2.42 billion in spending, bringing the total economic impact of the music industry in the Nashville MSA to $6.38 billion.
According to the report, the cities of Seattle; Austin, Texas; and Memphis, Tenn.; have conducted similar music industry studies, in addition to the state of Georgia. The cumulative direct spending impact for those studies was $3.14 billion.
Jobs – The study estimates there are 19,437 jobs directly related to music production. These jobs provide $722 million in annual labor income and pay an average annual wage of $37,200. An additional 19,826 jobs are indirectly created when music industry employees spend their income. Music-related tourism supports an additional 14,995 employees in the Nashville MSA, bringing the total employment impact of the music industry to more than 54,000 jobs.
Taxes – Sales taxes collected from core music businesses exceed $24 million annually, with property taxes adding another $45 million to local government treasuries. Accommodation taxes attributable to music-related tourism accounts for another $7 million, bringing the tax revenue generated by the music industry to more than $75 million.
Other Statistics – The Nashville MSA is home to more than 80 record labels, 130 music publishers, more than 180 recording studios, 40 national producers of ad jingles, 27 entertainment publications and some 5,000 working union musicians.
“Nashville is Music City, and to fully leverage the brand, we certainly felt at the Chamber that an economic assessment of this magnitude was long overdue,” said Mike Neal, president and CEO of the Nashville Area Chamber of Commerce. “When you’re in the business of selling Music City, from a tourism standpoint or from a business recruitment standpoint, having access to the information that came out of this study is invaluable.”
In conducting the assessment, Belmont researchers first gathered selected company data from commercial vendors of employment, sales and tax data or from U.S. Census Bureau data. A survey of music industry executives provided supporting, first-hand data for the study. Then, regional economic multipliers were applied to direct values to determine secondary impacts or “ripple effects” on regional employment and economic output.
“The completion of this study is truly a milestone for Music City. And making it all the more relevant is the unprecedented level of support and collaboration from across the music industry,” said Tony Conway, president and co-owner of Buddy Lee Attractions and a driving force behind the creation of the Music Associations Task Force. “This study proves what we can achieve when we merge the interests, resources and leadership of Nashville’s greater business community with that of the music industry.”
Belmont University’s fast-growing community of about 4,300 students comes from nearly every state and more than 25 countries. Belmont is committed to premier teaching with a focus on success in the real world. Belmont’s purpose is to help students explore their passions and develop their talents to meet the world’s needs. With more than 60 areas of study, eight master’s degrees and two doctoral degrees, there is no limit to the ways Belmont University can expand an individual’s horizon.
The Nashville Area Chamber of Commerce is Middle Tennessee’s largest business federation, representing 3,200 member companies. Together with its affiliates, the Nashville Chamber works to strengthen the region’s business climate and enhance Nashville’s position as a desirable place to live, work and visit. For more information, visit the Chamber’s web site at www.nashvillechamber.com.
To download the full music industry economic impact study for Nashville, click here (35-page file).
Belmont University is the only private university in Tennessee offering both undergraduate and graduate business and accounting programs that are accredited by The Association to Advance Collegiate Schools of Business (AACSB International), the most prestigious business school accrediting organization. The Massey School is a fully-accredited, part-time graduate business school.
The Mike Curb College of Entertainment and Music Business offers two areas of undergraduate study. One concentrated in Music Business leading to the Bachelor of Business Administration degree and the other concentrated in Audio Engineering Technology leading to either the Bachelor of Science or Bachelor of Arts degree. The College also maintains a post-graduate specialization in Entertainment and Music Business within the Masters of Business Administration degree.