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Oxford Economics Reveals Findings On The Fiscal Impact Of Live Music
Oxford Economics last month shared their findings on how live music impacts local, state and national economies—and although the report deals with pre-COVID dollar signs, it contains a wealth of telling information.
The downloadable, illustrated report, compiled in cooperation with Live Nation and titled "The Concerts And Live Entertainment Industry: A Significant Economic Engine," explores "the economic impact this important industry has across the United States."
This encompasses all the various professions and hats therein, from stagehands to front-of-house engineers to theater ushers—plus, all live musical performances, such as festivals and concerts, and comedy shows held in amphitheaters, clubs, theaters, arenas, stadiums, and other venues.
Here are the key findings, reprinted verbatim:
- In 2019 the industry's total nationwide economic impact of $132.6 billion supported 913,000 total jobs with associated labor income of approximately $42.2 billion.
- The industry generated a direct impact of $55.2 billion in 2019, which included local operational spending by live events venues and off-site spending by out-of-town live event attendees.
- If an out-of-town attendee were to spend $100.00 on a concert ticket, the local economy would benefit from an additional $334.92 in spending, resulting in a total spending impact of $434.92.
- Overall, the live events industry generated a total fiscal impact of $17.5 billion in 2019, including nearly $9.3 billion in federal tax revenues and $8.3 billion in state and local tax revenues.
Below these bullet points, the landing page offers downloadable summary reports specific to all 50 states with additional findings for top metropolitan areas.
"We commend Oxford Economics for reaffirming what we've known for so long—the music industry is a key driver in creating a prosperous United States economy," Harvey Mason jr., the President/CEO of the Recording Academy, said in a statement. "From local operational spending to the creation of more than 900,000 jobs, the live music industry creates diverse revenue streams and career opportunities resulting in significant economic impact. This study shows just how important our industry's role is in a healthy economy, which is more crucial now than ever as we continue to cope with the effects of COVID-19."
Helping keep the live music economy afloat in the present is the Shuttered Venues Operators Grant Program (SVOG), which the Recording Academy helped establish in Congress in December. In a recent update from the Small Business Administration, the SVOG has awarded more than $7.5 billion to more than 10,000 venues, theatres, and other qualified businesses.
SBA is still processing first-round awards, but they will have enough for "supplemental" grants. Once SBA finishes processing all first round awards and requests for higher award reconsiderations and appeals of those who were declined, they will begin the supplemental phase. SVOG grants will help ensure live music can return to its recent glory, and resume its significant economic impact across the nation.
Keep an eye on the Recording Academy's Advocacy page for more updates on this and be sure to absorb Oxford Economics' findings as a window into how music shapes the United States' fiscal composition.