2012 SOUTH BY SOUTHWEST CITY OF AUSTIN ECONOMIC IMPACT ANALYSIS MUSIC FILM INTERACTIVE EDU ECO
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1 2012 SOUTH BY SOUTHWEST CITY OF AUSTIN ECONOMIC IMPACT ANALYSIS MUSIC FILM INTERACTIVE EDU ECO MEDIA CONTACTS Greyhill Advisors Ben Loftsgaarden, Partner Direct: SXSW Elizabeth Derczo, Media Coordinator
2 EXECUTIVE SUMMARY! In March 2012, South by Southwest (SXSW) hosted its 26 th annual conference, trade show, and festival in Austin, Texas. SXSW has matured over the years into one of the world s most celebrated gatherings of Film, Music, and Interactive professionals and is now making its mark in the fields of Education and Sustainability. Growth was the theme of SXSW, with the number of official registrants at its core March events increasing by more than 15 percent. While SXSW Interactive was the single largest contributor to the increases in attendance, SXSW Film and SXSW Music also enjoyed significant gains. SXSW continues to be the single most profitable event for the City of Austin s hospitality industry. In 2012, SXSW directly booked nearly 11,000 individual hotel reservations totaling 50,000- plus room nights an increase of more than 13 percent over the previous year. The primary components of SXSW (Music, Film, and Interactive) delivered a depth and breadth of creative activity unmatched by any event in the world: 9 days of industry conferences, a 4- day trade show, a 4- day music gear expo, a 6- night music festival (2,200 artists on more than 100 stages), and a 9- day/night film festival (more than 425 screenings in 11 theatres). At 147,000, the total number of SXSW Conference and Festival participants (defined as any individual who attended at least one SXSW activity) set a new record. SXSW also hosted numerous popular free- to- the- public consumer events including the 3- night Auditorium Shores concert series, the 4- day Flatstock poster art show, and the 2- day StyleX fashion expo. Turnout at these functions pushed the total number of participants to more than 300,000. SXSW 2012 maintained the event s remarkable reputation, offering an unparalleled convergence of the Music, Film, and Interactive industries. For 14 days each year, Austin becomes a global incubator where creative professionals can learn from both emerging leaders and established legends. While the international crossroads of ideas is the core value proposition of SXSW, the diverse conferences and festivals also provide Austin residents with a unique opportunity to join out- of- towners in an extraordinary display of creativity and entertainment. Both populations introduce and circulate money in the local economy. SXSWedu, an extension SXSW Interactive, emerged as an attraction in its own right. Only in its second year, SXSWedu s 4 days of programming and training emphasizing technology solutions for education professionals attracted more than 2,000 registrants from across the country a healthy 250 percent increase over its first year in Last year, SXSW also launched SXSW Eco, a separate event in October dedicated to sustainability. In its inaugural year, SXSW Eco brought together some of the country s most respected public and private thought leaders to explore challenges and solutions for the environment and civil society. In 2012, SXSW was responsible for injecting more than $190.3 million into the Austin economy: Operational Output This is a measurement of the direct, indirect, and induced local economic benefit of the year- round operations of SXSW as well as event- specific expenditures by SXSW and its official parties and sponsors. In 2012, the impact of SXSW operations on the Austin economy exceeded $73.7 million. Attendance Expenditures This captures the direct, indirect, and induced local economic benefit of all attendees of the conference and festival. Attendees include official SXSW badge- holders, industry professionals, and wristband holders, festival exhibitors, and single visitors of events such as film screenings and music concerts. In 2012, SXSW attendance expenditures totaled more than $116.6 million. This economic impact analysis is limited solely to events hosted or sanctioned by SXSW. Activities by private marketers or third parties that attempt to exploit SXSW attendance are not recognized by this analysis.
3 SXSW BY THE NUMBERS! OPERATIONAL IMPACT! The$SXSW$event$lasts$only$two$ weeks$in$march,$but$the$event's$ scale$and$complexity$requires$a$ respect,$sxsw$resembles$any$ approximately$120$workers;$ temporary$and$seasonal$workers$ represent$the$equivalent$of$an$ the$ is$just$one$ component$of$the$total$economic$ impact$analysis.$ ATTENDANCE IMPACT! The$a_endance$economic$impact$includes$expenditures$ Badgeholders$ 42,200 SXSWEdu$ 2,000 21,900 Music$Wristband$Holders$ 4,500 Film$Pass$ 1,000 Paid$Single$Admission$(Music$&$Film)$ 71,100 Free$Single$Admission$ 62,000 ScreenBurn$Gaming$Arcade$ 30,000 Carver$Museum$Theatre$ 300 Music$Gear$Expo$ 20,500 Flatstock$Poster$Show$ 26,500 Style$X$ 16,500 Collateral$A_endance$ 4,200 TOTAL 302,700 DIRECT IMPACT! $125.8 MILLION! INDIRECT IMPACT! $35.7 MILLION! INDUCED IMPACT! $28.7 $24.7 MILLION! Direct$ economic$ impacts$ include$ expenditures$ directly$ injected$ into$ the$ local$ economy$ by$ SXSW,$ official$ sponsors,$ event$ a_endees$ and$ exhibitors.$$ A$direct$economic$impact$a_ributable$to$SXSW,$for$ example,$ might$ include$ revenues$ from$ a$ catering$ Indirect$ effects$ include$ increases$ in$ sales,$ income$ and$ jobs$ associated$ with$ companies$ that$ benefit$ impact$ a_ributable$ to$ SXSW$ might$ include$ the$ that$supplies$products$to$sxsw s$caterer.$ Induced$ effects$ a_ributable$ to$ SXSW$ include$ spending$ by$ individuals$ who$ experience$ increased$ Groceries$and$other$goods$and$services$purchased$ by$a$catering$company$employee$with$the$earnings$ = TOTAL IMPACT $190.3 MILLION + +
4 MEDIA VALUATION! Despite the methodological sophistication of economic impact studies, accounting for the less tangible economic elements of media valuation remains beyond the scope of traditional economic impact analysis. The City of Austin, for example, benefits from the extensive international media attention focused on SXSW. The value created by such media coverage, however, must be accounted for outside the framework of direct, indirect, and induced economic impacts. The impact of positive media attention has not yet been proven to translate into direct local investment, but SXSW s pivotal role in defining Austin as a place where creativity and commerce are valued, nurtured, and networked cannot be denied. The region s reputation as a creative mecca, perpetuated in part by SXSW, produces very real benefits for the City of Austin. According to a recent analysis by public policy consulting firm TXP, Austin is a place that appreciates creativity and culture in a variety of evolving forms, which 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. As TXP observed, employment in Austin s creative sector has increased by approximately twenty- five percent during the past five years, outpacing the growth of the local economy by 15 percentage points. Creating an authentic brand that resonates with both existing residents and external audiences, however, is a difficult and expensive endeavor. Austin s distinctive identity as a thriving center for music, technology, and film is not only genuine, but it has been established without significant public resources. Austin s idiosyncratic image was born in large part from the success of events such as SXSW. Each year, global coverage of SXSW reaches millions of creative professionals throughout the world. This coverage helps bolster favorable impressions about Austin. In 2012 alone, SXSW and by extension, Austin, Texas achieved over 392 million broadcast, print, and online impressions. For most other cities, reaching such a massive audience is possible only by hosting a mega- event such as the Olympics, the World Cup, or the Super Bowl. Not only do such events require extraordinary levels of public expenditures, but they are also fleeting. Austin alone holds the unique advantage of hosting an annual global audience that perpetuates the region s reputation as supportive of the film, music, and technology industries. Although the media exposure enjoyed by SXSW and Austin comes without cost to the city, such coverage does have a value. SXSW s impact is all the more powerful because it contributes to a coherent message about Austin, thereby strengthening the city s brand identity. In 2012 the value of SXSW print and online publications coverage totaled more than $34 million. The true worth of SXSW s media coverage easily exceeds the preceding estimate; due to the volume and difficulty of establishing values for blog, website, radio, and foreign broadcast coverage, these outlets were not included in the preceding media valuation of SXSW. The resulting calculations, though imprecise, represent the most comprehensive attempt to properly quantify the economic benefits that accrue to Austin each year via SXSW's "media buzz" factor. "South by Southwest now has three vibrant legs music, film and Web that come together to create a stool that is the envy of every other American city." New York Times "SXSW is still the best place on Earth to renew your vows with rock- and- roll." Washington Post "For filmmakers, musicians and digitally creative people, Austin, Texas is the place to be this week. It's the site of the annual South by Southwest Festival, where new movies are screened, new artists are showcased and new applications are launched." NPR " A once- in- a- lifetime experience that happens every year." The Irish Independent "SXSW is still at its heart where trends begin, careers are launched, and everyone reflects on what really matters when it comes to the future of music." Huffington Post
5 SXSW 2012 MEDIA COVERAGE! 70.C'%H%>0+/$%5!&!6!% 775$%#&2J!&6% 575$%5!&!6!% 579$%&'(%)*+,$%&)% 5B.P5B.PQ0%$%<?!&5#% 5&&$%!/10./0$%2!% 60.B8I%7+*0C;08E.:%5*+D*+0E*.$%6#&-!?K% #T$%J*8%!.:'1'8$%5!% O<5$%&'(%)*+,$%&)% 6*(%Y*.'8%-0+,'/%G0/;I$%&'(%)*+,$%&)% Z;+0.%&*B+$%<?!&5#% <1BDX*0C$%90.%<+0.;B8;*$%5!% <*;M8%AB[$%7#J2OS-% 20(,'+%-'CB0$%&'(%)*+,$%&)% UM].:/*.%>*8/$%G08IB.:/*.$%65% 7'+:'.80RB8'.$%&F?G!)% 710;,X**,$%&'(%)*+,$%&)% 71**QX'+:%7M8B.'88('',$%&'(%)*+,$%&)% 5*.C'%&08/$%&'(%)*+,$%&)% 60:X10C'/$%&F?G!)% 6'/0B18$%&'(%)*+,$%&)% #1%6B0+B*%10%>+'.80$%&'(%)*+,$%&)% #./'+/0B.Q'./%G'',1L$%&'(%)*+,$%&)% #8aMB+'$%&'(%)*+,$%&)% <08/%5*QD0.L$%&'(%)*+,$%&)% <*+X'8$%&'(%)*+,$%&)% O.;b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he above lists, though not comprehensive, illustrate the depth and breadth of the electronic and print media coverage of the SXSW Conferences and Festivals each year.
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