Music industry pumps $10 billion into Nashville economy

MP900383006A comprehensive study of Nashville’s music and entertainment industry shows it has a $10 billion annual economic impact on the Nashville region.

The report also found that the Nashville area has more music industry jobs than any other U.S. city in relation to population and total employment, even more than New York or Los Angeles. According to the findings, the music industry helps create and sustain more than 56,000 jobs in the Nashville area, supporting more than $3.2 billion of labor income annually.

“Music is what Nashville is known for worldwide, and now this study further validates its importance as an economic engine for the city,” Mayor Karl Dean said. “It’s clear that Nashville’s ability to attract musicians and other creative people in the music community is unparalleled. This report gives us insight into what’s driving our success in this industry so that we can further build on what’s already working. The message we want to send to the world is: If you’re in the music business, this is the place to be.”
The report was commissioned by the Music City Music Council, which is co-chaired by Mayor Dean and Randy Goodman, a longtime Music Row executive. It was conducted by the Nashville Area Chamber of Commerce’s Research Center.

“Nashville has this great brand and identity with music, but our goal as a Music Council is to take the local industry to the next level by attracting additional music companies, professionals and then ultimately, to develop new ideas that strengthen this global industry with Nashville as the worldwide headquarters of innovation and progress,” Goodman said. “This report gives us the information to see where our strengths and opportunities are, and I know this will spur some great next steps for our work as a Council.”

Key findings include:
•    Nashville’s density of music industry activity is currently two to 30 times greater than the nation overall, up to 10 times greater than New York or Los Angeles, and even greater compared to other cities such as Atlanta, Austin, and New Orleans.
•    Core Nashville employment in Nashville’s music industry per 1,000 population and per 1,000 total employment exceeds all other U.S. cities by large margins, and exceeds New York and Los Angeles by 2.5 to four times.
•    Industry linkages and specialization suggest that Nashville is part of a true quartet of music industry centers across the globe that also includes New York, Los Angeles and London.

The report also included recommendations on how Nashville can further strengthen its position as the global music capital. These recommendations include capitalizing on the changing dynamics of the world population, how and when music is consumed, and technology that affects how music is produced and delivered.

The report also identifies opportunities to use the density of music professionals in Nashville and the city’s reputation for music to become a true center for music education and training, drive music-related policy and practices, and further cluster the trade of musical instruments and merchandise, as well as professional services that support music business.

To see a copy of the full report and an executive summary, visit the Music City Music Council webpage.