Music Is Working: Economic Impact Analysis of Music Industry
Posted on November 30, 2005The Manitoba music industry generated more than $100-million worth of economic activity in the province in 2004, according to an economic impact analysis of the industry released today by the Manitoba Audio Recording Industry Association.
This is the first-ever study to measure the economic impact of key sectors of the music industry on the Manitoba economy. The study includes artists from all genres as well as booking agencies, managers, gear/instruments/P.A./lighting service, sales and rentals, graphic artists, manufacturers, music teachers, music organisations, photographers, production companies, record companies and distributors, producers, studios, talent buyers, and venues.
This study addresses a lack of current and detailed sector-specific research on the music industry. Along with providing a base-line for future comparisons and allowing Manitoba’s music industry to be better understood today, this study can be used as a prototype by industry associations across the nation to enable them, for the first time, to generate data that can be compared from region to region. In this era of increased accountability, the study will also provide data to underscore the effectiveness of funding to the industry.
• Total industry expenditure. The total Manitoba music industry expenditure in 2004 was $141 million, of which nearly $108 million was spent in Manitoba.
• Impact on GDP. The net positive impact on Manitoba’s GDP was $87.2 million after direct and indirect effects are calculated.
• Labour income. Most of the music industry’s positive impact on GDP is the result of its effect on labour income (i.e. wages and salaries). Direct and indirect effects of music industry spending produced $78.1 million in Manitoba labour income. When induced effects are included, the net effect is $100.1 million.
• Employment. Employment generated by the industry totals 3,727 person-years when all effects are included (this figure is 3,038 when induced effects are excluded).
The study provides a current snapshot of the music industry in Manitoba, showing it to be one that is evolving, with a diverse group of companies, artists and entrepreneurs able to develop sustainable careers within the province.
“The sound recording industry in Canada is under pressure, but there’s no doubt that our industry is diverse enough to thrive despite the challenges brought on by changes in the marketplace,” says Sam Baardman, Executive Director of MARIA. “The impact on the Manitoba economy is significant, and I’m thrilled that we finally have a solid baseline from which to measure growth and development in the future.”
From this study, it is clear that music industry professionals in Manitoba are well-positioned to take advantage of the shifting nature of the industry. The industry is driven by a pool of innovative artists and industry workers who offer a diverse range of skills, talent and expertise. Revenues are returned to Manitoba’s music industry from a wide variety of streams including traditional sources like live performance and CD sales, as well as new and emerging business opportunities associated with music for film, television, video games, and other new media.
“The Manitoba music industry is home to a growing number of innovative companies and talented artists and we’re proud to support them,” says Carole Vivier, CEO of Manitoba Film & Sound. “The investment is clearly paying off and this report gives us confidence that the industry is facing a bright future.”
The study was conducted by Kisquared on behalf of MARIA, with a steering committee of music industry professionals and government stakeholders overseeing the project. Kisquared conducted 446 surveys of artists and service providers. The overall margin of error for the study, based on population estimates, is ±2.73% at the 95% confidence level.
The study was funded by the Manitoba Music and Motion Pictures Development Project and the Department of Canadian Heritage.
The Manitoba Music and Motion Pictures Development Project is a four-year project designed to support the growth and development of the music and motion picture industries in Manitoba. It is funded by a $2.4 million investment by the Governments of Canada and Manitoba under their Economic Partnership Agreement (EPA), as well as $1.2 million in industry support, and additional contributions from other provincial and federal partners.
Click HERE to read the Summary Report.
Click HERE to read the full report.