Music may be a meaningful part of our everyday lives, but it also has contributed significantly to the U.S. economy. A recent report from the Recording Industry Association of America (RIAA) noted that music contributed over $212 billion to U.S. GDP in 2020 (the most recent data available for the study) and supported over 2.5 million jobs nationwide.[1]
The U.S. has the largest music economy in the world, accounting for more than one-third of the world's recorded music revenues.
In 2020, music added $212 billion to US GDP, an increase of 18% from its $179 billion in 2017. Music directly or indirectly supported over 2.5 million jobs, an increase of 350,000 since 2017. That translates to over 5% annual growth in employment over three years, outpacing general U.S. employment trends.
The number of music industry businesses and establishments increased by over 25,000 since 2017 to reach over 250,000 in 2020.
U.S. recorded music revenue grew from $5.7 billion in 2017 to over $9.8 billion in 2021, a compound annual growth rate (CAGR) of over 11%. Digital revenues grew from $4.3 billion to over $7.8 billion over the same period, boosted by strong growth in streaming.
Streaming accounts for more than 84% of U.S. music industry revenues. However, physical formats have shown surprising strength. Vinyl sales grew 17% over the three-year period, outpacing CDs for the fourth consecutive year. The report estimates that vinyl sales should surpass $1 billion in 2024 (Note: the report was compiled in mid-2023).
Music had the biggest impact on the Tennessee economy, contributing 1.7% to the overall state GDP. In California, music contributed more than 1.5% of the state’s GDP.
While music has had a strong cultural impact, it has also served as a strong driver of economic growth. It has added meaningfully to U.S. GDP and employment.
How May Individuals Gain Exposure to the Music Industry?
The MUSQ Global Music Industry ETF (MUSQ) seeks to provide investment results that, before fees and expenses, correspond to the total return performance of the MUSQ Global Music Industry Index (MUSQIX). The MUSQIX Index is designed to provide exposure to global, publicly traded companies and royalty funds with a core business interest in the global music industry.
MUSQ may provide individuals with an attractive vehicle to gain exposure to the global music industry.
[1] All data sourced from: The U.S. Music Industries: Jobs & Benefits, The 2024 Report, Recording Industry Association of America (RIAA), October 2024
MUSQ Global Music Industry Index ETF is offered by prospectus. Carefully consider the investment objectives, risks, charges, and expenses. This and other important information can be found in the MUSQ ETF prospectus, which should be read carefully before investing and can be obtained by visiting https://musqetf.com or by calling 1-855- MUSQ-ETF(687-7383).
Risk Disclosures
There is no guarantee the Fund will achieve its stated objectives.
In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles or social, economic or political instability in other nations.
Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.
In addition to the normal risks associated with investing, investments in small- or mid-capitalization companies typically exhibit higher volatility.
The Fund’s concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors.
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The Fund is new and has a limited operating history for investors to evaluate. A new and smaller fund may not attract sufficient assets to achieve investment and trading efficiencies.
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