Music industry contributes $472 million to NZ GDP in 2014
PwC report: Music industry contributes $472 million to New Zealand GDP in 2014
2014 PwC report highlights:
• The music industry contributed $472 million to NZ’s economy, an increase of 4.4 per cent from $452.2 million in 2013.
• The music industry in NZ supported employment of 4,295 full-time equivalent workers (FTEs), an increase of 5.3 per cent from 4,077 FTEs in 2013.
The report was commissioned by Recorded Music NZ, APRA AMCOS, The NZ Music Commission, Te Mangai Paho, NZ On Air and Creative New Zealand and was conducted by PwC.
It reveals the New Zealand music industry contributed $472 million to the New Zealand economy in 2014, up 4.2 per cent from 2013’s $452.2 million. The industry also supported 4,295 full time equivalent jobs (FTEs) in 2014, an increase of 5.1 per cent on the 4,078 FTEs provided in 2013.
The two largest contributors were music radio broadcasting and live music performance such as music performed at festivals, concerts and music venues. Music radio broadcasting contributed $237 million and live music performance contributed $120 million, which collectively amounts to more than 75 per cent of the music industry’s 2014 total GDP contribution in NZ.
Music radio broadcasting provided the equivalent of 2,346 full-time jobs and live music performance provided the equivalent of 1,193 jobs in NZ, together generating 80 per cent of the music industry’s total employment impact.
Music retailing – consisting of the physical and digital sales of music, including traditional and store-based retailing, online stores and payments for online music streaming services - generated a total economic impact of $76.4 million, and the equivalent of 380 full-time jobs.
Physical product sales continued to decline in 2014 to around 42 per cent of total gross output, down from 62 per cent in 2012. The decline was mitigated by growth in gross output from online music streaming, increasing from $2.2 million in 2012 to $18.6 million in 2014.
The report suggests that the industry is beginning to see a change in consumer behaviour, with many choosing to subscribe to a paid music streaming service, as opposed to obtaining music through illegal options, which historically has reduced revenue.
Communication and public performance contributed $33 million to the economy and the equivalent of 329 full-time jobs. The subsector includes revenue from music played on radio, television and the internet as well as music played in public such as at retailers, hospitality outlets, education facilities and gyms.
Synchronisation, referring to the royalties earned from licensing music for use in advertisements, games, films and television programmes, contributed $5 million and the equivalent of 47 full-time jobs to the economy.
The report analysed the direct economic impacts of the music industry, the impacts of music spending which occur when the music industry purchases goods and services from other industries, and the induced impacts which are generated when wages or salaries earnt in the industry are spent on other goods and services. The total economic impact of the industry includes all of these effects.