NASHVILLE’S MUSIC INDUSTRY

E M I N E   A R I K A N   –   D I L A R A   C U M H U R   –   A N D R E S   G U T I E R R E Z    

MARKET OVERVIEW

58% TOP RANKING IN THE MUSIC INDUSTRY 1.  USA 2.  JAPAN 3.  UNITED KINGDOM 4.  GERMANY

25.1  

23.1  

22.4  

21.8  

21.1  

19.5  

18.1  

16.9  

15.9  

15.7  

15.6  

15  

GLOBAL REVENUE OF THE MUSIC INDUSTRY FROM 2002 TO 2013

OF THE MARKET IN DIGITAL SALES IT TOTALED $2.60 BILLION

40%

35%

3%

21%

1%

U.S. MUSIC INDUSTRY REVENUES Source: RIAA

Digital  Downloads    

Physical    

SynchronizaMon  

SubscripMon  &  Streaming    

Ringtones  &  Ringbacks    

INDUSTRY OVERVIEW

MUSIC IN THE US  

N A S H V I L L E

HISTORY

MEDIA CENTERS WITH LONG HERITAGE DRIVEN BY THE CONCENTRATION OF SONGWRITERS AND PRODUCERS MUSIC ROW: THE HUB OF ‘MUSIC PUBLISHING & LICENSING’ HIGH GLOBAL RECOGNITION CULTURAL CHARACTERISTICS HIGHLY PROFESSIONAL, VARIOUS SPECILIZATIONS & FESTIVALS

1950s

OVERVIEW

ENTERTAINMENT CLUSTER

T R E N D S & C O M P E T I T O R S

TRENDS

OTHER PLATFORMS

CROWDSOURCING  

BRANDFUNDING  MOBILE  

360 DEAL  

ADVERTISING SPONSORSHIP  

VARIABLE PAY-MUSIC  

COMPETITIORS

0  

5  

10  

15  

20  

25  

30  

35  

COMPARATIVE MUSIC INDUSTRY CLUSTER EMPLOYMENT

NASHEVILLE     L.A   NEW  YORK    

COMPETITORS

0  

20  

40  

60  

80  

100  

120  

140  

160  

COST OF DOING BUSSINES

NASHVILLE L.A NEW YORK

R E G U L A T I O N S

INDUSTRY & REGULATIONS

ROYALTIES

MECH.

PERF.    

SYHNC.

90 % to labels

10 to 14 times more to labels

50/50

INDUSTRY & REGULATIONS

SONGWRITER EQUITY ACT AN ACT DESIGNED TO ENCOMPASS COMPOSERS AND PUBLISHERS TO EARN A FAIR COMPENSATION FOR THE USE OF THEIR INTELLECTUAL PROPERTY. THE ACT IS AIMING TO PUT MECHANICAL AND PERFORMANCE ROYALTY RATES IN LINE WITH “FAIR MARKET RATES.

S U S T A I N A B I L I T Y & E C O N O M Y

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SUSTAINTABILITY & ECONOMY

10  BILLION $ USD  ANNUAL ECONOMIC IMPACT IN NASHVILLE REGION     MUSIC INDUSTRY CLUSTER JOBS PER 1,000 WORKING-AGE POPULATION (AGE 20-64) BY METROPOLITAN AREA

OVERVIEW

$72,751

$35,072 $47,007

$104,560 $[VALUE]

$74,992

$44,850 $45,433 $46,725

$[VALUE]

$50,027

$0    

$50,000    

$100,000    

$150,000    

NASHVILLE’S MUSIC INDUSTRY GENERATED REVENUES 2012

Musical  instrument  Manufacturing     Musical  Instrument  supply  stores    

Compact  disc,  tape  and  record  stores     integrated  record  reproducMon  

Record  reproducMon     Music  Publising    

Sound  recording  industries     Radio  Networks    

Radio  StaMons     Musical  groups  and  arMst    

Other  sound  recording  industries    

0  

1000  

2000  

3000  

4000  

 jobs  generated  2012  

NASHVILLE’S MUSIC INDUSTRY GENERATED JOBS 2012

Musical  instrument  Manufacturing     Musical  Instrument  supply  stores    

Compact  disc,  tape  and  record  stores     integrated  record  reproducMon  

Record  reproducMon     Music  Publising    

Sound  recording  industries     Record  Networks    

Radio  StaMons     Musical  groups  and  arMst    

Other  sound  recording  industries  

SUSTAINABILITY & ECONOMY

NASHVILLE’S MUSIC INDUSTRY HELPS TO CREATE AND SUSTAIN MORE THAN 56,000 JOBS WITHIN THE NASHVILLE AREA

LABOR/POPULATION IS HIGHEST IN COUNTRY, x10 MORE ACTIVITY AND x4 EMPLOYMENT COMPARED TO LA, NY.

NASHVILLE’S MUSIC INDUSTRY CONTRIBUTES $10 BILLION TO THE LOCAL ECONOMY. $3.2 BILLION IS FROM LABOR FORCE.

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SUSTAINTABILITY & ECONOMY

-20% ENERGY  

845 SOLAR PANELS  

360.000 GALLONS RAINWATER  

GREEN ROOF  

-40% WATER  

O P P O R T U N I T I E S

OPPORTUNITIES

•  NASHVILLE  AS  THE  GLOBAL  HEADQUARTERS  OF  INNOVATION  AND  PROGRESS  IN  MUSIC  

•  CAPITILIZE  ON  CHANGING  DYNAMICS  OF  MUSIC  MARKET  AND  CONSUMERS  

•  INVEST  ON  TECHNOLOGY  OF  MUSIC  PRODUCTION  

•  NASHVILLE,  AS  THE  CENTER  OF  MUSIC  EDUCATION  AND  TRAINING  

•  REGULATE  TRADE  OF  MUSICAL  INSTRUMENTS  AND  MERCHANDISE  

•  REINFORCE  MUSIC  RELATED  POLICY  AND  PRACTICES  

THANK YOU