The Digital Media Affiliation (DiMA, which represents companies together with Spotify and Amazon Music), estimates that music streaming contributed $14.32 billion to the US GDP in 2021.

That’s in line with physique’s newest report, The Impression of Digital Music Streaming, printed earlier this week.

“Fairly merely, streaming is a pressure multiplier for the broader economic system. For each $1 in financial worth generated by streaming, different sectors of the U.S. economic system acquire a further $1.65—an quantity greater than 3 times the worth generated by the music business as a complete,” DiMa’s President and CEO Garrett Levin stated.

Levin added that the affect is pushed partly by streaming companies’ funding in analysis and improvement, which is one thing that streaming platforms do at greater than twice the US common R&D spending.

“Fairly merely, streaming is a pressure multiplier for the broader economic system. For each $1 in financial worth generated by streaming, different sectors of the U.S. economic system acquire a further $1.65—an quantity greater than 3 times the worth generated by the music business as a complete.”

Digital Media Affiliation

DiMA famous that music streaming’s GDP affect is bigger than the contribution of the water transportation sector at $12.8 billion and  development equipment manufacturing industries at $11.5 billion.

The GDP contribution of platforms like Amazon Music, Apple Music, Pandora, Spotify and YouTube Music is sort of much like your entire 2021 GDP contribution of Santa Cruz County in California.

The music streaming sector generates its income from greater than 100 million paying audio streaming subscribers. 

“Streaming has reoriented the incomes potential of music, leading to billions of {dollars} invested within the business by way of public inventory listings and acquisitions of precious recording and publishing catalogs,” stated Levin.

Earlier information from Midia Analysis confirmed that there have been 616.2 million subscribers to music streaming companies by the top of the primary half of 2022, up 17.6% from 523.9 million within the year-ago interval.

Most not too long ago, Luminate (previously MRC Information / Nielsen Music) revealed on April 6 that on-demand audio streams the world over crossed the 1 trillion mark for the primary time within the first quarter of 2023.

The identical information confirmed that music listeners have spent roughly 960,000 years streaming music up to now this 12 months.

Within the labor facet, music streaming has additionally considerably contributed to job creation within the US. The DiMA information confirmed that for each job immediately in music streaming, the US economic system gained 9 extra jobs through oblique exercise in different sectors. This interprets to round 92,000 US jobs supported by streaming in 2021.

“These jobs cross many alternative industries and professions not essentially related to music and they’re rising at an annual charge of 20%,” Levin stated.

Digital music streaming offered about $2.6 billion in direct revenue to the US economic system in 2021. The revenue got here within the type of wages and salaries, advantages, payroll and private taxes, and proprietor revenue.

Globally, on-demand audio streams surged 22.6% 12 months over 12 months to three.4 trillion, in line with Luminate’s 2022 12 months-Finish report.

Music Enterprise Worldwide