October 26, 1998

NOTE TO EDITORS

The latest issue of the New York Fed's Second District Highlights -- New York City's New-Media Boom: Real or Virtual?--is enclosed for your review.

Author Jason Bram, an economist in the Bank's Domestic Research area, explains that "new media"--an industry broadly defined as the merging of computer and telecommunications technologies--has been portrayed as the New York City economy's new growth engine. New-media businesses, such as on-line magazine publishing, web-site design, and Internet advertising, have been cited as key contributors to city employment and earnings.

Despite New York City's reputation as a new-media hub, Bram argues that the industry's actual size and growth are open to debate. Accordingly, he investigates the extent to which a new-media boom is influencing the city economy by examining employment, earnings, and growth statistics from a local new-media association and the U.S. government.

Bram concludes that:

Contact: Douglas Tillett