Creative Industries contribute $3.848b to NZ economy

New Zealand’s creative industries added NZ $3.848 billion (A$3.494 billion) to gross domestic product (GDP) in 2014.

They directly employ almost 20,000 people. Wider employment figures doubles the figure to 42,000 full-time equivalent (FTE) jobs.

This is according to a new PWC report called Employment And National GDP Impacts Of Music, Publishing And Film And Television In New Zealand and released through creative industries alliance WeCreate. It measured the economic gains generated by music, films, television, books and games. The full report can be found at www.wecreate.org.nz.

The music industry’s contribution to the GDP made up 12% of the creative industries’ input. It had a total impact on GDP of $472 million ($428.5 million) or $213 million ($193.4 million direct. It provided a total 4,295 FTE jobs (1,754 direct).

Music was second only to the 74% total by films & television (the study combined the two sectors). They had a total impact of $2,829 million ($2,568 million) and $1,303 million ($1,1`83 million) direct. They created 31,416 FTE jobs, 14,431 of these directly.

Books generated to 8% contribution to the creative impact on the economy. It provides a total 3,708 FTE jobs (2,026 direct) and has a total impact on GDP of $308 million ($279.6 million) and $128 million ($116.2 million) direct.

Data from the games industry was introduced this year for the first time. Games’ contribution is 6% creating $98 million ($88.9 million) directly to the economy, and a total impact of $239 million. The sector also employs 1024 people, and 2,305 FTE jobs.

Last year’s report, with only four of the industries, valued the GDP impact at $3.597 billion ($3.2 billion) and estimated at employment at 30,599 FTEs. This year’s figures are higher because of input from the games sector.

PwC hopes to incorporate data from the arts, design, advertising, software and architecture sectors in the study down the track.

Chair of WeCreate, Paula Browning, says up-to-date data on the value of these industries is critical to being able to measure their future growth.

“As the report shows, each industry has a different mix of revenue streams. The level of revenue from each stream is changing and new streams are being added as industries respond to influences such as technological innovation and customer demand.”

Browning says the New Zealand Government needs to recognise the export potential of the creative sectors and find ways to expand further growth.

"How we can use the online world to overcome the fact we are hidden away, and use it to our best advantage to drive added export as well as domestic revenue?"

She cited recent successes such as TV series The Almighty Johnsons, Anna Smaill's book The Chimes, films The Dark Horse and What We Do In The Shadows, musicians Sol3 Mio and Gamespot's PC Game of the Year – Path of Exile.

The Ministry of Business, Innovation and Employment is set to begin an 18-month review of the use of copyright by the creative industries.

Image: NZ sibling duo Broods