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Industry Classifications - NAICS

• » Arts, Entertainment, and Recreation

• » Other Information Services

• » Motion Picture and Sound Recording Industries

• » Publishing Industries (except Internet)

• » Internet Publishing and Broadcasting

• » Internet Service Providers, Web Search Portals, and Data Processing Services

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Arts, Entertainment, and Recreation

NAICS # 71 | The Sector as a Whole

The Arts, Entertainment, and Recreation sector includes a wide range of establishments that operate facilities or provide services to meet varied cultural, entertainment, and recreational interests of their patrons. This sector comprises (1) establishments that are involved in producing, promoting, or participating in live performances, events, or exhibits intended for public viewing; (2) establishments that preserve and exhibit objects and sites of historical, cultural, or educational interest; and (3) establishments that operate facilities or provide services that enable patrons to participate in recreational activities or pursue amusement, hobby, and leisure-time interests.

Some establishments that provide cultural, entertainment, or recreational facilities and services are classified in other sectors. Excluded from this sector are: (1) establishments that provide both accommodations and recreational facilities, such as hunting and fishing camps and resort and casino hotels are classified in Subsector 721, Accommodation; (2) restaurants and night clubs that provide live entertainment in addition to the sale of food and beverages are classified in Subsector 722, Food Services and Drinking Places; (3) motion picture theaters, libraries and archives, and publishers of newspapers, magazines, books, periodicals, and computer software are classified in Sector 51, Information; and (4) establishments using transportation equipment to provide recreational and entertainment services, such as those operating sightseeing buses, dinner cruises, or helicopter rides are classified in Subsector 487, Scenic and Sightseeing Transportation.

Other Information Services

NAICS # 519 | Industries in the Other Information Services subsector group establishments supplying information, storing information, providing access to information, and searching and retrieving information. The main components of the subsector are news syndicates, libraries, and archives.

Motion Picture and Sound Recording Industries

NAICS # 512 | Industries in the Motion Picture and Sound Recording Industries subsector group establishments involved in the production and distribution of motion pictures and sound recordings. While producers and distributors of motion pictures and sound recordings issue works for sale as traditional publishers do, the processes are sufficiently different to warrant placing establishments engaged in these activities in a separate subsector. Production is typically a complex process that involves several distinct types of establishments that are engaged in activities, such as contracting with performers, creating the film or sound content, and providing technical postproduction services. Film distribution is often to exhibitors, such as theaters and broadcasters, rather than through the wholesale and retail distribution chain. When the product is in a mass-produced form, NAICS treats production and distribution as the major economic activity as it does in the Publishing Industries subsector, rather than as a subsidiary activity to the manufacture of such products.

This subsector does not include establishments primarily engaged in the wholesale distribution of videocassettes and sound recordings, such as compact discs and audio tapes; these establishments are included in the Wholesale Trade sector. Reproduction of videocassettes and sound recordings that is carried out separately from establishments engaged in production and distribution is treated in NAICS as a manufacturing activity.

Publishing Industries (except Internet)

NAICS # 511 | Industries in the Publishing Industries (except Internet) subsector group establishments engaged in the publishing of newspapers, magazines, other periodicals, and books, as well as directory and mailing list and software publishing. In general, these establishments, which are known as publishers, issue copies of works for which they usually possess copyright. Works may be in one or more formats including traditional print form, CD-ROM, or proprietary electronic networks. Publishers may publish works originally created by others for which they have obtained the rights and/or works that they have created in-house. Software publishing is included here because the activity, creation of a copyrighted product and bringing it to market, is equivalent to the creation process for other types of intellectual products.

In NAICS, publishing the reporting, writing, editing, and other processes that are required to create an edition of a newspaper is treated as a major economic activity in its own right, rather than as a subsidiary activity to a manufacturing activity, printing. Thus, publishing is classified in the Information sector; whereas, printing remains in the NAICS Manufacturing sector. In part, the NAICS classification reflects the fact that publishing increasingly takes place in establishments that are physically separate from the associated printing establishments. More crucially, the NAICS classification of book and newspaper publishing is intended to portray their roles in a modern economy, in which they do not resemble manufacturing activities.

Music publishers are not included in the Publishing Industries (except Internet) subsector, but are included in the Motion Picture and Sound Recording Industries subsector. Reproduction of prepackaged software is treated in NAICS as a manufacturing activity; on-line distribution of software products is in the Information sector, and custom design of software to client specifications is included in the Professional, Scientific, and Technical Services sector. These distinctions arise because of the different ways that software is created, reproduced, and distributed.

The Publishing Industries (except Internet) subsector does not include establishments that publish exclusively on the Internet. Establishments publishing exclusively on the Internet are included in Subsector 516, Internet Publishing and Broadcasting. The Publishing Industries (except Internet) subsector also excludes products, such as manifold business forms. Information is not the essential component of these items. Establishments producing these items are included in Subsector 323, Printing and Related Support Activities.

Internet Publishing and Broadcasting

NAICS # 516 | Industries in the Internet Publishing and Broadcasting subsector group establishments that publish and/or broadcast content exclusively for the Internet. The unique combination of text, audio, video, and interactive features present in informational or cultural products on the Internet justifies the separation of Internet publishers and broadcasters from more traditional publishers included in subsector 511, Publishing Industries (except Internet) and subsector 515, Broadcasting (except Internet).

Internet Service Providers, Web Search Portals, and Data Processing Services

NAICS # 518 | Industries in the Internet Service Providers, Web Search Portals, and Data Processing Services subsector group establishments that provide: (1) access to the Internet; (2) search facilities for the Internet; and (3) data processing, hosting, and related services. The industry groups (Internet Service Providers and Web Search Portals, Data Processing Hosting, and Related Services) are based on differences in the processes used to access information and process information. The Internet Service Providers and Web Search Portals industry group includes establishments that are providing access to the Internet or aiding in navigation on the Internet. The Data Processing, Hosting, and Related Services industry group includes establishments that process data. These establishments can transform data, prepare data for dissemination, or place data or content on the Internet for others. In addition, the shared use of computer resources is included in the Data Processing, Hosting, and Related Services industry group.

Establishments that are publishing exclusively on the Internet are included in Subsector 516, Internet Publishing and Broadcasting and establishments that are retailing goods using the Internet are included in Sector 44-45, Retail Trade.

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