2020 | Piracy Impact
The True Cost of Sound Recording Piracy to the U.S. Economy | IPI
Piracy of recorded music costs the U.S. sound recording industries billions of dollars in lost revenue and profits—but that’s not all. This study shows that recorded music theft costs American workers significant losses in jobs and earnings, and also costs the U.S government substantial lost tax revenue.
- The U.S. economy loses $12.5 billion in total output annually as a consequence of music theft.
- Sound recording piracy leads to the loss of 71,060 jobs to the U.S. economy.
- Music theft also leads to the loss of $2.7 billion in earnings annually in both the sound recording industry and in downstream retail industries.
- The U.S. federal, state and local governments lose a minimum of $422 million in tax revenues annually due to piracy.
- $291 million of that $422 million represents lost personal income taxes while $131 million is lost corporate income and production taxes.
Source: Institute for Policy Innovation (IPI)