Impact of the music industry on Nashville
How much does the music industry contribute to the Nashville economy?
The music industry has been in the news a lot lately with the passage of the Music Modernization Act. As artists, producers and songwriters are hopeful to start receiving more fair compensation for their work, it can be helpful to look at the economic impact of the music industry as a whole on our region.
In 2013, the Research Center here at the Chamber released a study that answered this question. The Research Center found the following:
- The music industry helps create and sustain an estimated 56,000 jobs within the Nashville area.
- The music industry supports more than $3.2 billion of labor income annually.
- Nashville’s music industry contributes $5.5 billion to the local economy, for a total output of $9.7 billion within the Nashville MSA.
These impacts are due not only to direct employment and spending by businesses in the music industry, but also the jobs in other industries that the music business supports like hospitality, finance and insurance, real estate and more.
In the United States these impacts of the music industry are unmatched in any other city, even ones that are considered to be music business hubs. One way to quantify this is by measuring the location quotient of the music industry in various cities across the county. A location quotient is a way to measure how concentrated an industry is in a region. Nashville’s location quotient for the music industry is the highest of any other city in the United States, and we boast the second largest percentage of earnings from the industry with only Los Angeles earning more.
We want to support the continued growth of the music industry here in Nashville. To do so, we are teaming up with music industry professionals in the region to see how the Chamber can best serve them. Learn more about these efforts here.
If you're a musician looking for your next place to gig or record, or you need to hire someone in the industry, check out our music industry resource page.