UK Music has published its annual ‘This Is Music’ stats report that seeks to quantify the economic impact of the wider music industry within the UK. The big figure included each year is the ‘gross value added’ for the sector at large, which UK Music reckons was up 13% in 2023 to £7.6 billion. Music exports were also up, by 15% to £4.6 billion, and employment numbers hit a record 216,000 full time equivalent posts.
With growth all round, UK Music boss Tom Kiehl says that, following the devastating impact of the COVID pandemic, “a resilient music industry” has emerged that is now “ideally placed to turbo charge the new UK government’s mission to secure the highest sustained growth in the G7”. Not only that, but “international appetite for UK music remains strong” and “employment continues to rise steadily”.
Responding to the latest stats pack, the UK government’s Culture Secretary Lisa Nandy says: “From global superstars like Harry Styles and Adele, internationally-renowned festivals like Glastonbury and Parklife and a huge range of vibrant subcultures, the music industry is a real British success story. These impressive new figures underline how vitally important it is to driving growth - as it boosted its value to our economy by nearly a billion pounds in one year”.
So, plenty of reasons to be cheerful. But, of course, there is also a big but. Because UK Music is first and foremost a lobbying organisation and the aim of this report is to demonstrate the success and the ongoing potential of the music industry to lawmakers and decision makers, while concurrently setting out the case for more government support.
“This is not a time to be complacent”, Kiehl continues, “Far from it in fact. ‘This is Music 2024’ tells the story, based on real evidence and data from across the sector, that despite some very strong headline figures in 2023, the UK music industry has vulnerabilities too”.
On the live side, it’s no secret that - while the upper end of the sector has fully bounced back since the pandemic - venues, promoters and artists performing at the grassroots in the UK are struggling. Meanwhile extra Brexit bureaucracy and a hike in US visa costs are hitting artists looking to tour internationally.
“A succession of stadium and arena tours by major artists masks major problems for touring artists as a whole and especially developing artists, who should be the headline names of the future”, the ‘This Is Music’ report declares.
High inflation, the cost of international travel, increased US visa costs and “a litany of Brexit-related issues” have negatively impacted most of the industry, it says, “but touring artists have been hardest hit”.
“For developing artists building their international profiles for the first time, the impacts of Brexit have been a catastrophe”, it goes on. A UK Music survey of artists impacted by Brexit identified a number of new or increased costs caused by the UK leaving the EU, including visas and work permits, increased transport costs, increased administration costs and the need for carnets when touring Europe.
Of those artists impacted by Brexit, 71% said they were now receiving fewer invites to perform in EU countries, 57% said it was now too expensive to accept bookings even when they were invited to perform, with 41% saying touring the EU is no longer an option.
31% also noted that, even when they can play in Europe, Brexit has made it uneconomic to sell merchandise at EU shows, with merchandise sales key for many artists to make touring activity profitable.
On the rights side of the music industry, key concerns include increased competition in the international market - where the UK has traditionally performed particularly strongly - and the ongoing uncertainties created by generative AI.
Although total exports were up 15% - and recorded music exports specifically grew by 8% - UK tracks are accounting for a smaller percentage of total music consumption around the world.
Says the report, “in 2015, music from the UK accounted for about 17% of global consumption, but the UK’s share of audio streams is now estimated to be under 10%”. That’s mainly because of the increased global success of certain non-English speaking markets and especially South Korea.
Adds the report, “In the face of increased global competition and a continued pressure on the UK’s share of the global market, which has accelerated since Brexit, a much more ambitious plan is needed to ensure the UK keeps pace with intensifying global competition”.
To that end, UK Music calls on the government to provide additional support for the sector - especially at the grassroots, and when it comes to exports and AI. It also wants the new Labour government to make good on its commitment to better regulate ticket touting and for more investment in music education in schools.
Acknowledging that wish list, Lisa Nandy’s statement concludes, “I am committed to ensuring that the government works with industry to build upon its current success in the years to come. By supporting vital grassroots venues, introducing new secondary ticketing protections for fans and ensuring all children can access high quality music education in schools, we can help the sector go from strength to strength in the future”.
