nashville music industry overview
DESCRIPTION
Nashville has this great brand and identity with music, but our goal as a Music Council is to take the local industry to the next level by attracting additional music companies, professionals and then ultimately, to develop new ideas that strengthen this global industry with Nashville as the worldwide headquarters of innovation and progress" said by Goodman. Density of music professionals in Nashville and the city’s reputation for music to become the hub for music education and training, drive music-related policy and practices, and further cluster the trade of musical instruments and merchandise, as well as professional services that support music business. This presentation is an overview of the Nashville Music Industry and how triple bottom line business perspective will boost the success of the industry and sustain music business in the region. Pratt Institute - Money & Markets Group Final Project (2014) Credits: Emine Arıkan, Andres Gutierrez, Rabia Dilara CumhurTRANSCRIPT
NASHVILLE’S MUSIC INDUSTRY
E M I N E A R I K A N – D I L A R A C U M H U R – A N D R E S G U T I E R R E Z
MARKET OVERVIEW
58% TOP RANKING IN THE MUSIC INDUSTRY 1. USA 2. JAPAN 3. UNITED KINGDOM 4. GERMANY
25.1
23.1
22.4
21.8
21.1
19.5
18.1
16.9
15.9
15.7
15.6
15
GLOBAL REVENUE OF THE MUSIC INDUSTRY FROM 2002 TO 2013
OF THE MARKET IN DIGITAL SALES IT TOTALED $2.60 BILLION
40%
35%
3%
21%
1%
U.S. MUSIC INDUSTRY REVENUES Source: RIAA
Digital Downloads
Physical
SynchronizaMon
SubscripMon & Streaming
Ringtones & Ringbacks
INDUSTRY OVERVIEW
MUSIC IN THE US
N A S H V I L L E
HISTORY
MEDIA CENTERS WITH LONG HERITAGE DRIVEN BY THE CONCENTRATION OF SONGWRITERS AND PRODUCERS MUSIC ROW: THE HUB OF ‘MUSIC PUBLISHING & LICENSING’ HIGH GLOBAL RECOGNITION CULTURAL CHARACTERISTICS HIGHLY PROFESSIONAL, VARIOUS SPECILIZATIONS & FESTIVALS
1950s
OVERVIEW
ENTERTAINMENT CLUSTER
T R E N D S & C O M P E T I T O R S
TRENDS
OTHER PLATFORMS
CROWDSOURCING
BRANDFUNDING MOBILE
360 DEAL
ADVERTISING SPONSORSHIP
VARIABLE PAY-MUSIC
COMPETITIORS
0
5
10
15
20
25
30
35
COMPARATIVE MUSIC INDUSTRY CLUSTER EMPLOYMENT
NASHEVILLE L.A NEW YORK
COMPETITORS
0
20
40
60
80
100
120
140
160
COST OF DOING BUSSINES
NASHVILLE L.A NEW YORK
R E G U L A T I O N S
INDUSTRY & REGULATIONS
ROYALTIES
MECH.
PERF.
SYHNC.
90 % to labels
10 to 14 times more to labels
50/50
INDUSTRY & REGULATIONS
SONGWRITER EQUITY ACT AN ACT DESIGNED TO ENCOMPASS COMPOSERS AND PUBLISHERS TO EARN A FAIR COMPENSATION FOR THE USE OF THEIR INTELLECTUAL PROPERTY. THE ACT IS AIMING TO PUT MECHANICAL AND PERFORMANCE ROYALTY RATES IN LINE WITH “FAIR MARKET RATES.
S U S T A I N A B I L I T Y & E C O N O M Y
CV
SU
ST
AIN
TA
BIL
ITY
&
EC
ON
OM
Y
SUSTAINTABILITY & ECONOMY
10 BILLION $ USD ANNUAL ECONOMIC IMPACT IN NASHVILLE REGION MUSIC INDUSTRY CLUSTER JOBS PER 1,000 WORKING-AGE POPULATION (AGE 20-64) BY METROPOLITAN AREA
OVERVIEW
$72,751
$35,072 $47,007
$104,560 $[VALUE]
$74,992
$44,850 $45,433 $46,725
$[VALUE]
$50,027
$0
$50,000
$100,000
$150,000
NASHVILLE’S MUSIC INDUSTRY GENERATED REVENUES 2012
Musical instrument Manufacturing Musical Instrument supply stores
Compact disc, tape and record stores integrated record reproducMon
Record reproducMon Music Publising
Sound recording industries Radio Networks
Radio StaMons Musical groups and arMst
Other sound recording industries
0
1000
2000
3000
4000
jobs generated 2012
NASHVILLE’S MUSIC INDUSTRY GENERATED JOBS 2012
Musical instrument Manufacturing Musical Instrument supply stores
Compact disc, tape and record stores integrated record reproducMon
Record reproducMon Music Publising
Sound recording industries Record Networks
Radio StaMons Musical groups and arMst
Other sound recording industries
SUSTAINABILITY & ECONOMY
NASHVILLE’S MUSIC INDUSTRY HELPS TO CREATE AND SUSTAIN MORE THAN 56,000 JOBS WITHIN THE NASHVILLE AREA
LABOR/POPULATION IS HIGHEST IN COUNTRY, x10 MORE ACTIVITY AND x4 EMPLOYMENT COMPARED TO LA, NY.
NASHVILLE’S MUSIC INDUSTRY CONTRIBUTES $10 BILLION TO THE LOCAL ECONOMY. $3.2 BILLION IS FROM LABOR FORCE.
CV
SU
ST
AIN
TA
BIL
ITY
&
EC
ON
OM
Y
SUSTAINTABILITY & ECONOMY
-20% ENERGY
845 SOLAR PANELS
360.000 GALLONS RAINWATER
GREEN ROOF
-40% WATER
O P P O R T U N I T I E S
OPPORTUNITIES
• NASHVILLE AS THE GLOBAL HEADQUARTERS OF INNOVATION AND PROGRESS IN MUSIC
• CAPITILIZE ON CHANGING DYNAMICS OF MUSIC MARKET AND CONSUMERS
• INVEST ON TECHNOLOGY OF MUSIC PRODUCTION
• NASHVILLE, AS THE CENTER OF MUSIC EDUCATION AND TRAINING
• REGULATE TRADE OF MUSICAL INSTRUMENTS AND MERCHANDISE
• REINFORCE MUSIC RELATED POLICY AND PRACTICES
THANK YOU