FOR IMMEDIATE RELEASE
New Study Highlights Music Streaming’s Outsized Impact on the U.S. Economy
Findings by economists note job creation and positive impacts on other industries from the success of streaming platforms
Washington, D.C. (April 11, 2023) – The Digital Media Association (DiMA) today released the results of an economic study conducted by Secretariat Economists: An Economic Analysis on the Impact of Digital Music Streaming. The study is based on recent economic data and offers new analysis about jobs, growth, and the impact music streaming is having on workers and businesses across the U.S. economy.
Key findings of the study reveal how streaming’s innovation and growth is delivering value to the U.S. economy. These include:
- For every $1 in economic value generated by streaming, other sectors of the U.S. economy gain an additional $1.65.
- Music streaming in the U.S. contributed $14.32 billion to the U.S. gross domestic product (GDP) in 2021. This is similar in size to the annual GDP contributions of Santa Cruz County, California ($15.0 billion) and Alexandria, Virginia ($13.1 billion).
- Job growth powered by streaming isn’t limited to music or technology occupations and it has been growing at an annual rate of 20%.
- For every job directly created in music streaming, other sectors of the U.S. economy gain 9 additional jobs.
- Digital music streaming supported over 92,000 total jobs in the U.S. economy in 2021.
- 8.82% of revenue in 2020 from streaming services went to research and development. This was more than twice the investment level of the average industry.
“This study offers new insights on the success of digital streaming, for not only the music industry, but the U.S. economy and workers across many different occupations,” said DiMA CEO Garrett Levin. “While streaming is frequently recognized for its contributions to recorded music revenues and its innovations in delivering music to fans, it is less frequently recognized as a catalyst for broader economic growth and over 92,000 U.S. jobs.”
Click here for the full study, An Economic Analysis on the Impact of Digital Music Streaming.
Click here for DiMA CEO Garret Levin’s blog on the new report.
About The Digital Media Association (DiMA):
DiMA is the leading organization advocating for the digital music innovations that have created unparalleled consumer choice and revolutionized the way music fans and artists connect. Representing the world’s leading music streaming companies – Amazon, Apple Music, Pandora, Spotify, YouTube – DiMA’s mission is to promote and protect the ability of music fans to engage with creative content whenever and wherever they want and for artists to more easily reach old fans and make new ones. www.DiMA.org