NAICS 512240 Quarterly Industry Report
Sound Recording Studios
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 512240Sector: Information (51)Updated: Q1 2026
About This Report
Fair Market Value compiles this NAICS 512240 industry report using data from the U.S. Census Bureau[7], the Bureau of Labor Statistics[8], and the Small Business Administration[9]. Our research team analyzes studio rate structures, equipment depreciation schedules, and occupancy-based revenue models to build valuation benchmarks for recording facilities. This report on NAICS 512240 is updated quarterly to reflect demand trends in music production and audio content creation.
Industry Snapshot
Key metrics for the sound recording studios industry.
Industry Definition & Overview
Sound Recording Studios (NAICS 512240) encompasses establishments primarily engaged in providing the facilities and technical expertise for sound recording in a studio setting. These operations produce master recordings for music, audiobooks, podcasts, voice-over narration, radio commercials, and film or television audio content. Studios range from large commercial facilities with multiple tracking rooms and isolation booths to small project studios specializing in single-genre production.
The industry underwent structural change as digital audio workstation technology lowered the barrier to entry for recording. Professional-grade software from providers such as Pro Tools, Logic Pro, and Ableton Live enabled home and project studios to capture broadcast-quality audio at a fraction of the capital cost required for analog tape-based facilities. This shift compressed pricing for basic tracking sessions while increasing demand for premium mixing and mastering services where acoustic room design and high-end monitoring equipment still command rate premiums.
Approximately 3,000 establishments operate in this industry nationwide, employing roughly 5,800 workers with a combined payroll near $449 million in 2020 according to Census Bureau data[5]. Revenue streams include hourly and daily room rentals, project-based production fees, equipment rental add-ons, and engineering labor charges. The Bureau of Labor Statistics[6] tracks audio engineering occupations that form the core workforce at these facilities. Nashville, Los Angeles, New York, and Atlanta maintain the highest studio concentrations.
What's Included in This Industry
- Music recording and tracking sessions
- Audio mixing and final mastering services
- Voice-over and narration recording for commercials and audiobooks
- Podcast and broadcast audio production
- Film and television dialogue recording and ADR sessions
- Foley and sound effects recording
- Studio room and equipment rental by the hour or day
- Audio restoration and archival transfer services
- Remote recording and mobile studio deployments
- Engineering and producer staffing for recording sessions
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Information | 51 |
| Subsector | Motion Picture and Sound Recording Industries | 512 |
| Industry Group | Sound Recording Industries | 5122 |
| NAICS Industry | Sound Recording Studios | 51224 |
| National Industry | Sound Recording Studios | 512240 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 512250 | Record Production and Distribution | Record production and distribution companies are primary clients booking studio time to create the master recordings they release commercially |
| 512230 | Music Publishers | Music publishers administer compositions that songwriters record in studios, linking publishing activity directly to studio session demand |
| 512191 | Teleproduction and Other Postproduction Services | Postproduction services handle audio finishing work such as sound mixing for film that overlaps with studio capabilities in post-audio |
| 334310 | Audio and Video Equipment Manufacturing | Audio equipment manufacturers produce the microphones, consoles, and monitors that studios purchase as core capital assets |
| 711510 | Independent Artists, Writers, and Performers | Independent artists and musicians book studio time directly to record albums, singles, and demo tracks outside of label deals |
| 541840 | Media Representatives | Media representatives and agents arrange recording sessions and negotiate studio bookings on behalf of their artist clients |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 30.3% | 639 |
| 2 | New York | 13.3% | 281 |
| 3 | Florida | 7.8% | 165 |
| 4 | Texas | 5.3% | 111 |
| 5 | Georgia | 4.7% | 99 |
| 6 | Tennessee | 4.0% | 85 |
| 7 | Illinois | 3.0% | 64 |
| 8 | New Jersey | 2.2% | 47 |
| 9 | North Carolina | 2.1% | 45 |
| 10 | Pennsylvania | 1.9% | 39 |
% Of Establishments
0%
30%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
176
Total SBA Loans
$39.3M
Total Loan Volume
$223K
Average Loan Size
13 yrs
Average Loan Term
10.96%
Average Interest Rate
784
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA size standard[10] for NAICS 512240 is $11 million in average annual receipts, classifying studios below that revenue threshold as small businesses eligible for federal programs. Studio owners can finance equipment purchases and facility build-outs through the SBA 7(a) loan program[11], while SBA 504 loans[12] support real estate acquisition for purpose-built studio spaces. Most independent studios generate well under $2 million in annual revenue, placing them firmly in the small business category.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Fifth Third Bank | 8 | $13.7M | $1.7M |
| 2 | Mega Bank | 8 | $6.6M | $825K |
| 3 | Newtek Bank, National Association | 40 | $4.8M | $119K |
| 4 | JPMorgan Chase Bank, National Association | 24 | $3.8M | $160K |
| 5 | Northeast Bank | 32 | $3.1M | $98K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses fall under NAICS 512240?
NAICS 512240 covers establishments providing studio facilities and technical expertise for sound recording. This includes commercial recording studios, mastering houses, voice-over studios, podcast recording facilities, and mobile recording operations that capture audio on location.
How is NAICS 512240 different from 512250?
NAICS 512240 covers the physical recording facility and engineering services, while 512250 covers the production, ownership, and distribution of the resulting sound recordings. A studio provides the room and equipment; a record label or producer finances, owns, and releases the finished master, per Census Bureau definitions[13].
What is the SBA size standard for sound recording studios?
The SBA sets the size standard for NAICS 512240 at $11 million in average annual receipts over the preceding five fiscal years. Studios below this revenue threshold qualify as small businesses for federal lending and contracting programs, per the SBA size standards table[10].
What NAICS codes are related to sound recording studios?
Key related codes include 512250 (record production and distribution), 512230 (music publishers), 512191 (postproduction services), 334310 (audio equipment manufacturing), and 711510 (independent artists). Each reflects a different node in the audio production ecosystem.
What industries are closely related to recording studios?
Closely related industries include record labels (512250) that book sessions for commercial releases, music publishers (512230) whose writers need studio access, film production (512110) requiring dialogue and score recording, and independent musicians (711510) who are direct studio clients.
What activities are included in sound recording studios?
Activities include music tracking, mixing, and mastering; voice-over and audiobook narration recording; podcast and broadcast production; film dialogue and ADR sessions; Foley recording; equipment rental; and audio restoration. The BLS[6] tracks the audio engineering workforce that staffs these operations.
Can recording studio owners get SBA loans?
Where are sound recording studios concentrated in the United States?
Nashville, Los Angeles, New York, and Atlanta maintain the highest concentrations of recording studios, driven by their established music industry ecosystems. Nashville leads for country and gospel recording, while Los Angeles and New York serve broader pop, hip-hop, and media production markets, per Census Bureau County Business Patterns[14].
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]Census Bureau data data.census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]U.S. Census Bureau census.gov
- [8]Bureau of Labor Statistics bls.gov
- [9]Small Business Administration sba.gov
- [10]SBA size standard sba.gov
- [11]SBA 7(a) loan program sba.gov
- [12]SBA 504 loans sba.gov
- [13]Census Bureau definitions census.gov
- [14]Census Bureau County Business Patterns census.gov
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