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14 Nov 17 Texas Music Growing

The Texas Music Office (TMO) released the findings of its 2017 Texas music industry economic impact study today. The TMO worked with TXP, Inc. economist Jon Hockenyos and his team to update the office’s first state-wide economic impact study, which was conducted in 2015.

“The Texas Music industry plays a substantial role in the Texas economy. It is vital that we continue to measure and report its economic impact,” says TMO Director Brendon Anthony. “The Texas Music Office is dedicated to supporting this industry and creating a more supportive and interconnected statewide network of industry professionals so that we can continue to enjoy such positive growth in this sector. We want to thank Jon Hockenyos and his team at TXP for continuing to assist us in that effort by providing this accurate and up to date data.”

The findings from the study show that the economic impact of the Texas music industry has grown significantly from 2015 to 2017.
• “Combined, music business and music education directly account for almost 95,000 permanent jobs, $3.6 billion in annual earnings, and just over $8.5 billion in annual economic activity, up from just under 92,000 jobs and about $7.5 billion in annual activity during 2015. The ripple effects associated with the direct injection related to music business and music education bring the total impact (including the direct effects) to over 178,000 permanent jobs, $6.5 billion in earnings, and $19.8 billion in annual economic activity. The State of Texas also realizes approximately $323 million in tax revenue from these impacts (a 15% increase from 2015’s $280 million in tax revenue).”
• “The return on investment associated with economic development is normally a longer-term payback, as external events tend to drive the fortunes of a regional economy in the near term, per the boom and bust cycle of sectors such as energy and real estate. However, the state via its agencies such as the Texas Music Office, can have a more significant influence on its economic fortunes over the longer run. Much of Texas’ future will depend on a highly capable workforce, innovation and entrepreneurship, clusters in knowledge industries, the presence of world-class research universities and other institutions of higher learning, and public policy that supports growth and development. Embedded in all of the above is the interrelationship between creativity, innovation, and quality of life, of which music and the arts play a central role.”
• “The figures outlined above at least partially document the substantial role that music plays in Texas’ economy, and the fact that is has grown slightly from the initial findings from 2015. However, there is more to the story. Much energy and effort have gone into analyzing the reasons that drive economic growth in Texas, with an exceptional range of activity and opportunity in music and the creative space clearly a major factor. 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. This in turn has a significant impact on business recruitment, retention, and expansion, as well as local entrepreneurship. Moreover, music is a crucial element of “Brand Texas” that draws visitors from across the globe. 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.”

To read and/or download the complete 2017 economic impact study, please see: https://gov.texas.gov/uploads/files/music/TXP_TX_Music_Impact_2017_final.pdf.

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