The UK music industry has continued to experience growth for the eleventh consecutive year, with the latest figures revealing the highest profits in over two decades. The digital entertainment and retail association (ERA) has announced that the value of UK music rose by 7% in 2023, reaching a record high of £11.9bn. According to the ERA, streaming and digital services were the main contributors to this growth, with revenues up by over £800m. Streaming now accounts for 91.7% of the total revenue for UK music nationally. Sales of vinyl increased by 18%, whilst the sales of CDs saw a 2% increase.
The music revenues in the UK are now at their highest levels since 2002 and are just 0.8% below the greatest revenue year, 2001. ERA Chairman, Ben Drury, praised the statistics, stating that the entertainment business has defied gravity by delivering eleven years of growth, regardless of wider economic conditions. Drury also credited the creative talent behind movies, music and games for their contribution, whilst acknowledging the significant impact of digital services and retailers. ERA CEO, Kim Bayley added that given what the industry has been through, this is a red-letter day for the music industry, describing it as a testament to the entrepreneurial spirit of digital services and retailers.
As revenues continue to rise, Spotify continues to face scrutiny for its business model, particularly its method of paying artists. The company has announced a new streaming threshold of 1,000 plays before songs are eligible to generate royalties. This has led to criticism, with the new requirements meaning that only 37.5 million songs out of an estimated 100 million will generate revenue. Moreover, grassroots music venues across the UK continue to struggle, despite the boost in industry profits. Industry organisations such as the Music Venue Trust are calling for urgent help from the music industry to reinvest in the future of music.
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