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Music streaming contributed over $14bn to the US economy in 2021, according to DiMa study

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The Digital Media Affiliation (DiMA, which represents companies together with Spotify and Amazon Music), estimates that music streaming contributed $14.32 billion to the US GDP in 2021.

That’s in response to physique’s newest report, The Impact of Digital Music Streaming, revealed earlier this week.

“Fairly merely, streaming is a power multiplier for the broader financial system. For each $1 in financial worth generated by streaming, different sectors of the U.S. financial system achieve an extra $1.65—an quantity greater than thrice the worth generated by the music trade as an entire,” DiMa’s President and CEO Garrett Levin stated.

Levin added that the influence is pushed partially by streaming companies’ funding in analysis and improvement, which is one thing that streaming platforms do at greater than twice the US common R&D spending.

“Fairly merely, streaming is a power multiplier for the broader financial system. For each $1 in financial worth generated by streaming, different sectors of the U.S. financial system achieve an extra $1.65—an quantity greater than thrice the worth generated by the music trade as an entire.”

Digital Media Affiliation

DiMA famous that music streaming’s GDP influence is bigger than the contribution of the water transportation sector at $12.8 billion and  development equipment manufacturing industries at $11.5 billion.

The GDP contribution of platforms like Amazon Music, Apple Music, Pandora, Spotify and YouTube Music is nearly just like your complete 2021 GDP contribution of Santa Cruz County in California.

The music streaming sector generates its income from greater than 100 million paying audio streaming subscribers. 

“Streaming has reoriented the incomes potential of music, leading to billions of {dollars} invested within the trade via public inventory listings and acquisitions of precious recording and publishing catalogs,” stated Levin.

Earlier information from Midia Analysis confirmed that there have been 616.2 million subscribers to music streaming companies by the tip of the primary half of 2022, up 17.6% from 523.9 million within the year-ago interval.

Most lately, Luminate (previously MRC Knowledge / Nielsen Music) revealed on April 6 that on-demand audio streams the world over crossed the 1 trillion mark for the primary time within the first quarter of 2023.

The identical information confirmed that music listeners have spent roughly 960,000 years streaming music up to now this yr.

Within the labor aspect, music streaming has additionally considerably contributed to job creation within the US. The DiMA information confirmed that for each job straight in music streaming, the US financial system gained 9 extra jobs by way of oblique exercise in different sectors. This interprets to round 92,000 US jobs supported by streaming in 2021.

“These jobs cross many alternative industries and professions not essentially related to music and they’re rising at an annual charge of 20%,” Levin stated.

Digital music streaming offered about $2.6 billion in direct earnings to the US financial system in 2021. The earnings got here within the type of wages and salaries, advantages, payroll and private taxes, and proprietor earnings.

Globally, on-demand audio streams surged 22.6% yr over yr to three.4 trillion, in response to Luminate’s 2022 Yr-Finish report.

Music Enterprise Worldwide

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