The Texas Music Office has released an analysis which breaks down the state music industry’s commercial growth with specific insight into job creation, earnings, revenue from sales and tax revenue.
The 2017 Economic Impact of Music in Texas report recognizes the industry has experienced substantial growth when compared to the 2015 study. When combined, music business and music education directly account for almost 95,000 permanent jobs, $3.6 billion in annual earnings and over $8.5 billion in annual economic activity. This is an increase of almost 3,000 permanent jobs and $1 billion of annual economic activity from the 2015 report.
Music plays a crucial role in Texas’ tourism and branding. Festivals such as Austin City Limits and South by South West bring tens of thousands of visitors and hundreds of millions of dollars into Austin. Direct, indirect and induced influences are responsible for the economic influx. A 2016 report commissioned by ACL confirms 75,000 visitors attended the festival each day and more than $277 million was injected into the economy as a result of the two-weekend festival. This would include hotel stays, taxi rides and food, which boosts the economy in an indirect and induced fashion.
“Both the hotel operator and taxi driver experience increased income from the visitor’s stay, for example, as do the cleaning supplies outlet and the gas station proprietor,” the report stated. “Induced effects capture the way in which this increased income is in turn spent in the local economy.”
More than 178,000 jobs stem from the total impact of the music industry. In reference to the total impact, Texas utilizes more than $323 million in tax revenue from the $19.8 billion in sales.
Gary Hartman, the director of the Center for Texas Music History at Texas State, said the economic boom is a result of effective marketing and heightened populations.
“My sense is that the state’s population growth is driving much of this (economic growth),” Hartman said. “Plus, Texas music is being actively marketed to national and international audiences. The growth in music, especially live music, enhances the quality of life in Texas.”
With Austin labeled as the live music capital of the world, the Texas Music Office recognizes the importance of music in the branding of Texas and the effects on an entrepreneurial level.
“Texas is a place that appreciates creativity and culture in a variety of evolving forms, and the incredible diversity of the local scene undoubtedly serves to both attract and retain talented people,” the report stated. “This in turn has a significant impact on business recruitment, retention, and expansion, as well as local entrepreneurship. As Texas looks to its economic development future, creativity is a fundamental comparative advantage—the goal remains to identify the key investments, policies, and regulatory changes that can support the infrastructure necessary for sustainability and growth.”