Music shows its economic weight

Studios, stages and nightclubs closed, concerts impossible since March 2020, records postponed, record stores damaged, the music sector is paying a heavy price for the health crisis due to the Covid-19 epidemic. To great ills, great remedies.

To fight against the disaster and not to be forgotten about recovery plans, music recalls its major importance in the European economy with a study by Oxford Economics, commissioned by the International Federation of the Phonographic Industry (IFPI). This comprehensive document which provides an inventory of the sector in 52 pages (in English) is a first.

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Music, how many divisions? The Oxford Economics study, « The Economic Impact of Music in Europe », compiled 2018 industry data in the 27 countries of the European Union as well as the UK, where Europe‘s most important musicians and rock / pop groups come from. Five key figures stand out:

Two million jobs

The music sector represents two million jobs (or one in 119 jobs in the EU 28), two thirds of which are direct jobs and the other third indirect jobs. That is 24% more jobs than in the European audiovisual sector and twice as many as in the media.

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82 billion euros in turnover

The contribution of the music industry to the gross domestic product (GDP) of the 28 European countries amounts to 81.9 billion euros (in gross added value). Music therefore generates income in an amount greater than the GDP of 9 European countries listed in the report. The United Kingdom represents 20% of this gross added value, an impressive level: without it, the musical contribution to the economy of the 27 member countries of the European Union is only 66.3 billion euros.

Dematerialized exports

European music is exported, in the form of goods and services, worth 9.7 billion euros to countries outside the EU28. This is more than 2.3 times more than European audiovisual programs to the rest of the world. This amount is also higher (by 13%) than exports of European wines protected by a PGI (Protected Geographical Indication), that is to say, quality wines. Note that the vast majority of these music exports are made in digital form, even if a few CDs and vinyls still cross borders.

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Taxes of 31 billion euros

The music industry pays 31 billion in taxes, the equivalent of nearly 20% of the European budget. For the European Union of 27, this amount drops to 26 billion euros. Pete Collings, director at Oxford Economics, notes that “Music interacts with the rest of the economy, stimulates economic activity, supports employment and generates tax revenue across Europe » as part of a “Ecosystem of large and small businesses with a wide variety of activities. “

7,400 record companies including 800 in France

The EU28 has 7,400 record companies including 1,670 in the United Kingdom, the country with the most, and 800 in France, which is in second place in this ranking. From “majors” to independent labels, they employ nearly 45,000 people in the EU 28. “Music is an essential piece of the European puzzle, of European identity and culture. In many ways, the value of music is incalculable, it makes us vibrate and heals us ”, explains Frances Moore, director general of IFPI, who doesn’t want music to be reduced to its key figures. These are nonetheless imposing for the European economy.

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