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Music Industry Report 2020 Includes the Work of Talented Student Interns Who Went Through a Competitive Selection Process to Become a Part of the Research Team

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Music Industry Report 2020 Includes the Work of Talented Student Interns Who Went Through a Competitive Selection Process to Become a Part of the Research Team 2O2O THE RESEARCH TEAM This study is a product of the collaboration and vision of multiple people. Led by researchers from the Nashville Area Chamber of Commerce and Exploration Group: Joanna McCall Coordinator of Applied Research, Nashville Area Chamber of Commerce Barrett Smith Coordinator of Applied Research, Nashville Area Chamber of Commerce Jacob Wunderlich Director, Business Development and Applied Research, Exploration Group The Music Industry Report 2020 includes the work of talented student interns who went through a competitive selection process to become a part of the research team: Alexander Baynum Shruthi Kumar Belmont University DePaul University Kate Cosentino Isabel Smith Belmont University Elon University Patrick Croke University of Virginia In addition, Aaron Davis of Exploration Group and Rupa DeLoach of the Nashville Area Chamber of Commerce contributed invaluable input and analysis. Cluster Analysis and Economic Impact Analysis were conducted by Alexander Baynum and Rupa DeLoach. 2 TABLE OF CONTENTS 5 - 6 Letter of Intent Aaron Davis, Exploration Group and Rupa DeLoach, The Research Center 7 - 23 Executive Summary 25 - 27 Introduction 29 - 34 How the Music Industry Works Creator’s Side Listener’s Side 36 - 78 Facets of the Music Industry Today Traditional Small Business Models, Startups, Venture Capitalism Software, Technology and New Media Collective Management Organizations Songwriters, Recording Artists, Music Publishers and Record Labels Brick and Mortar Retail Storefronts Digital Streaming Platforms Non-interactive Digital Services, Radio Touring, Booking, Venue Management, Music Festivals and Live Music Production Merchandise Music Education Synchronization Licensing 80 - 99 The Impact of the Music Industry Sector and Cluster Analysis Economic Impact and Contribution Analysis Large Musical Events Independent Venues Diversity and Inclusion 101 - 143 Evaluation of Trends by Genre in the Nashville Region Alternative/Indie Latin Christian and Gospel Musical Theatre Classical Pop Country Punk, Emo, Hardcore and Metal EDM/Electronic Rock Folk/Americana Singer/Songwriter Hip-Hop and Rap Soul, R&B and Blues Jazz All Genres 3 144 - 214 Music Industry Workforce Assessment Workforce Category #1: Studio / Performing Musicians, Recording Artists, Vocalists, Producers, DJs Workforce Category #2: Songwriters, Composers, Lyricists, Arrangers, Conductors, Bandleaders Workforce Category #3: Live Music, Non-Technical Occupations: Concert Promoter, Talent Buyer, Booking Agents, Tour Manager, Music Festival Operations, Venue Manager, Venue Operations, Artist Hospitality Workforce Category #4: Live Music, Technical Occupations: Sound Engineering Technicians, Studio Maintenance, Live Sound, Engineer, Instrument, Production, Audio, Equipment Technicians, Lighting and Production Design, Rigging, Live Crew Workforce Category #5: AM/FM Radio, Internet Radio, Satellite Radio Workforce Category #6: Music Education, Music Therapy Workforce Category #7: Public Relations, Journalism, Social Media, Creative Agency, Artist Manager, Business Manager Workforce Category #8: Financial Planning, Consulting, Accounting, Banking, Entertainment Law Workforce Category #9: Music Publishing Creative Operations (Sync Pitching, Marketing, Talent Scouting, etc.), Sync Licensing, Music Supervision, Advertising, Catalog Administration, Rights Management, Metadata Organization, Performance or Mechanical Copyright Society Operations, Record Label Operations (A&R, Marketing, Radio Promotion, Distribution, Human Resources, etc.) Workforce Category #10: Technology Development, Software Engineering, Digital Service Platform Operations, Research Analytics, Record Label Operations (A&R, Marketing, RadioPromotion, Distribution, Human Resources, etc.) Workforce Category #11: Brick and Mortar Music Retail Operations 216 - 223 The Finale A Look Back Conclusion Final Thoughts from the Music Industry 225 - 226 Resources 227 - 231 Acknowledgements 232 - 235 Glossary 236 - 239 Endnotes 240 Other Works Cited 240 Appendices 4 LETTER OF INTENT Aaron Davis, Co-founder and CEO of Exploration Group, and Rupa DeLoach, Vice President of Research at the Nashville Area Chamber of Commerce: Wendell Berry writes: “It may be that when we no longer know what to do we have come to our real work and that when we no longer know which way to go we have come to our real journey. The mind that is not baffled is not employed. The impeded stream is the one that sings.” In our inaugural publishing of the Music Industry Report, we hold to this sentiment. Exploration has teamed up with the Nashville Area Chamber of Commerce and several leading trade associations and educational institutions to study the state of the Music Industry, its individual sectors, and its functioning as a collective body. In our research we’ve analyzed how folks worked in the past and how their efforts have been affected by COVID-19. Chip and Dan Heath in their bestselling book, Switch, inform us: “data are just summaries of thousands of stories—tell a few of those stories to help make the data meaningful.” That is just what the research team has done in the compelling narrative within this study. The Music Industry Report 2020 was conducted in three main parts: 1) in depth interviews with individuals to learn how their businesses and organizations have been personally affected 2) detailed surveys of large groups of members of our community to garner a broader perspective 3) economic impact data, demographic statistics and cluster analysis of the Nashville, Tenn. region with other music- centric areas. This method gave us a comprehensive understanding of some of the opportunities and challenges the music industry faces. So as you read, we ask you to witness the dynamic and innovative nature of the music industry and the opportunities it presents to both creatives and entrepreneurs in addition to the economic power of the music industry here in the Nashville Region (in terms of jobs, monetary impacts and what it means to the regional and national landscape). We believe this report will demystify how the music industry works and offer insights on how recession and pandemics can be navigated by those most critical to the industry yet most vulnerable. Thank you to the contributors and project leads who helped produce this study and all of the folks who made it possible. To properly analyze such a large and complex industry was no easy task; the results stand as a testament to the merit, grit, and perseverance of everyone in this industry. 5 In addition to anticipated findings from this report, we took into consideration a few overarching principles. It has been important for us to embody them in order to put our best foot forward and in order for our work to stand in full integrity. We are committed to truthful reporting on the findings of this research. Transparency of data means making all findings available in addition to a complete methodology. We are also committed to a spirit of collaboration and mutual benefit. This project would not be possible without the collective effort of the countless individuals and organizations who comprise this industry. The high-level findings of the study illuminate that Nashville is not only where the world comes to record and listen to music, but where music comes to do business. Data suggests that our resolve must be strengthened to address the sustainable viability of independent venues in addition to issues of compensation and inequity that were further exacerbated by the COVID-19 pandemic—deficits in social programs available for musicians and staff, in gender and racial bias and in a balanced revenue share for creators. We also learned there is much work to do in educating all participants in the music supply chain regarding the value and importance of metadata. Finally, we all agree (whether its among those in the music industry or the wider public) that music is worth fighting for, that it enriches our daily lives and keeps our souls intact. Now, more than ever, we can meet the challenges and opportunities uncovered by this research in Nashville and around the world. We are optimists. We believe the best is yet to come. We view the great challenges of our times as opportunities to work together, utilizing our collective intellect in order to derive creative and adaptive solutions to more effectively reach our common goals. We are grateful and have high regard for the many individuals who share this belief and have contributed so much in helping us produce the Music Industry Report 2020. We’ll see you down the road. This is how the music business works. Aaron Davis Rupa R DeLoach Co-Founder and CEO Vice President of Research Exploration Group Nashville Area Chamber of Commerce 6 EXECUTIVE SUMMARY Industry follows art. Creation is the nucleus of human experience and music is the communication of human experience over sound waves from one mind to another. It is the lullabies you sang from birth, the way you learned the alphabet, the mosh pit you joined when you were thirteen, the first CD you ever bought, the guitarist who shook your hand, the long rides home listening to your favorite radio station, the symphony orchestra, the gospel choir, the bass drop at Coachella. A music industry is what happens when “the roadies take the stage, pack it up and tear it down,” to quote Jackson Browne. It is the money changing hands before the crowd rolls in. It is the royalties and commissions and licensing fees and salaries of over 1.9 million people who exist to facilitate an ex-
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