The New Zealand music industry contributes $639 million to the economy – but homegrown content still only makes up just over a quarter of that revenue.
Recorded Music NZ has released PwC’s 2017 Economic Contribution of the Music Industry report, which was commissioned by the organisation, along with other industry bodies such as APRA AMCOS and the NZ Music Commission.
The study shows that the music industry as a whole contributed $639 million to New Zealand’s Gross Domestic Product (GDP) and directly and indirectly was responsible for 5,500 full-time jobs (FTEs). That is more than double the amount reported in PwC’s 2016 report, with growth being driven by the streaming explosion and live music.
However, the economic contribution of NZ content remains a much smaller part of the pie. PwC estimates that homegrown music directly accounts for around $80 million – 27 percent of the total figure – and just under 670 FTEs.
But while the radio and live music sectors shared similar split between local and overseas contents, in the retail channel – which is made up of physical sales, streaming and digital downloads – the gap was considerably wider. According to PwC, NZ content made up only 8 percent of the total retail figure, with a GDP contribution of $7 million, which in turn equates to just over 100 jobs.
Overall, retail accounted for $112 million in revenue and directly and more than 500 jobs. The two bigger earners for the industry were music radio broadcasting, which contributed $279 million, and live music performance contributed $168 million; collectively these sector account for 70 per cent of the music industry’s 2017 total GDP total.
The full report can downloaded here.