Music Canada has just released its report detailing the economic impact analysis of the Canadian sound recording industry. Key results reveal that the Canadian recording industry makes a significant contribution to Canada’s economy – with 81 per cent of economic activity occurring in Ontario.
- The economic impact of spending by the recording industry – defined as the major and independent record companies – was approximately 400 million dollars in 2010 in Canada
- The estimated economic impact on GDP by the recording industry – defined as the major and independent record companies – was $240 million in 2010 in Canada
- Of the direct spending, 72 per cent can be attributed to the major record companies and 28 per cent to the independent companies
- 81 per cent of the economic activity took place in Ontario
- Quebec is the next largest market, and with the Atlantic and Prairie regions, accounts for about 32 per cent of the independent companies’ spending and 12 per cent of the major companies’ spending
- Ontario and the GTA Benefit from a High Proportion of the Economic Activity in the Canadian Recording Industry
- 79 per cent of the total economic activity takes place in the GTA with an additional 1.5 per cent of economic activity in the rest of Ontario
- Major and independent record companies generated over $300 million in spending in Ontario in 2010, almost $250 million of that was spent in the GTA
- This translated into an estimated $190 million contribution to GDP in Ontario, $151 million to GDP in the GTA alone
- The Canadian Recording Industry generated an estimated $37 million in government revenues in Ontario in 2010
- The Canadian Recording Industry supports the creation of thousands of high paying jobs
- The recording industry created over 3,300 direct and indirect jobs – more than 2,600 in Ontario –this does not include artists and musicians
- These are high paying jobs – the average wage of those directly employed in the recording industry in Canada is $58,400 while in Ontario that number rises to $60,100
- By comparison, the average age for all industries across Canada is $42,700 and in Ontario, $44,100
- Live Music – a spin off activity of recording – also has a significant impact.
- Total economic impact in Canada: $455 million contributing approximately $252 million to national GDP
- More than 7,400 direct and indirect jobs
The broader music industry would include impacts from the physical and digital retailers and the use of musical recordings in film and television, as well as the manufacture and sale of music instruments, merchandising, tourism generated as a result of live musical performances and other related nonindustry revenues and activities.
This analysis does not account for the cultural benefits of developing Canadian talent.
For more information, visit: www.musiccanada.com.