Recorded Music NZ has released the 2017 Economic Contribution of the Music Industry report. The report was commissioned by Recorded Music NZ with the support of industry organisations APRA AMCOS and The NZ Music Commission and conducted by PWC.
The report reveals that the New Zealand music industry contributed $639 million to New Zealand’s GDP and 5,500 full time equivalent jobs (FTEs) in 2017, via indirect effects. This contribution grew markedly in 2017 and was primarily driven by strong growth in streaming revenues and live music.
The two largest contributors were music radio broadcasting and live music performance (concerts, festivals, or music venues). Music radio broadcasting contributed $279 million and live music performance contributed $168 million, which collectively amounts to 70 per cent of the music industry’s 2017 total GDP contribution.
The next largest subsector: Music retailing – 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 $112 million and the equivalent of 509 full-time jobs.
Public Performance of music contributed $39 million to the economy and produced the equivalent of 350 full-time jobs. This sub-sector includes broadcast royalties received by Recorded Music NZ and APRA AMCOS via their direct licensing activities, and also includes royalties from music played in public such as at retailers, hospitality outlets, education facilities and gyms as licensed by OneMusic.
The smallest sub-sector – 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 51 full-time jobs to the economy.
Also included is an estimation of overseas earnings by New Zealand musicians based on survey data. This is revenue earned outside New Zealand for live performances overseas, and recordings and publishing overseas. As no survey was conducted for this report a three-year average of the 2014-16 period was derived for this year’s estimate of $36 million.