Why the Music Industry is one of the most important industries

 Why the Music Industry is one of the most important industries

Written by: Jack Davis 

Everyone is aware that the music industry is quite a large industry. Through research, I discovered that it is actually quite larger and impactful than I had originally thought. Contributing a staggering 170 Billion USD to the annual GDP, as well as employing 2.5 million people nationwide, the Music Industry is one of the most important industries in the US. 

Starting off, the music industry contributes around 170 Billion USD to annual GDP every year. This is a massive amount of money, and it has been increasing due to streaming becoming more accessible and easier to come across. According to IFPI, there were 341 million paid music subscriptions by the end of 2019, which is slightly less than 11% of all smartphone users. These are massive numbers, with large amounts of money circulating due to streaming alone, not to mention concerts and the creative process. Spotify alone has 182 million Spotify Premium users worldwide, according to statista.com.

As you can see, Spotify's monthly active users has only increased since 2017, and has shown no sign of slowing down. This is how streaming plays into the massive GDP boost that the music industry delivers. This is one reason why I think the music industry is one of the most important industries in the US.

Aside from raking in the sheer amount of money that it does, the music industry also employs 2.5 million Americans, according to riaa.com, a well reputed company in the music industry. According to statista, there are 157.54 million people employed in the US. This means that 1.59% of all employed Americans are employed in the music industry. The vast majority of these employees come from live performances, distribution, travel, recording, and streaming. This just helps create an idea of how large the industry truly is, and why it is one of the most important industries in the US.

Works Cited

Götting, Marie Charlotte. “• Spotify users - subscribers in 2022.” Statista, https://www.statista.com/statistics/244995/number-of-paying-spotify-subscribers/. Accessed 30 May 2022.

Lewis, Jaron. “Uncommon Ways The Music Industry Affects The Economy.” Omari MC, https://www.omarimc.com/uncommon-ways-the-music-industry-affects-the-economy/. Accessed 30 May 2022.

“New Report: How Music Powers the American Economy.” RIAA, 9 February 2021, https://www.riaa.com/new-report-how-music-powers-the-american-economy/. Accessed 30 May 2022.

Stone, Jimmy. “The State of the Music Industry in 2020.” Toptal, https://www.toptal.com/finance/market-research-analysts/state-of-music-industry. Accessed 30 May 2022.