The representative body for music streaming services, DiMA, has published a report estimating ‘The Impact of Digital Music Streaming’ in the US. It’s an effort to look beyond direct revenues.
“Quite simply, streaming is a force multiplier for the broader economy. For every $1 in economic value generated by streaming, other sectors of the U.S. economy gain an additional $1.65 – an amount more than three times the value generated by the music industry as a whole,” wrote CEO and president Garrett Levin in his introduction to the report.
“Ultimately, music streaming in the U.S. contributed $14.32 billion to the U.S. gross domestic product (GDP) in 2021,” he continued. How? This is a mix of R&D investment; salaries and job creation; advertising; real estate and more.
GDP-contribution estimation is a tried-and-tested method of garnering support from policymakers.
We’ve seen similar reports from the music industry (for example the RIAA’s recent ‘The U.S. Music Industries: Jobs & Benefits’ report, or UK Music’s ‘This Is Music 2022’ report) as well as from YouTube with its ‘The State of the Creator Economy’ report in 2022.
DiMA’s report is pitching the merits of music streaming in a similar way.
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