Four commercial assets are driving revenue in the music industry, from composition to brand image.
As outlined in UK Music’s latest report, the financial health of the music industry hinges on four primary commercial assets: composition, recording, live performance, and brand image. Each of these assets plays a significant role in shaping the industry, influencing gross value added (GVA), exports, and employment levels. The report sheds light on how these components have evolved and their impact on the music economy in recent years.
The composition sector continues to be a stronghold for revenue generation. In 2024, music publishers earned £1.7 billion, reflecting a modest increase of 5% from the previous year. This revenue stream benefits from various licensing arrangements, including sync rights and digital agreements with platforms like DSPs. Furthermore, PRS for Music achieved a milestone by distributing over £1 billion in royalties to songwriters and publishers for the first time, marking an 8.1% increase compared to 2023. Despite the positive trends, the threat posed by artificial intelligence remains a pressing concern, particularly for sectors relying on production music.
Recorded music also saw growth, with revenues totaling £1.49 billion in 2024, a rise of 4.8% from 2023. This figure encompasses all forms of music distribution, from physical sales to streaming. Streaming continues to flourish, with revenues hitting £1.02 billion, while physical sales, including vinyl and CDs, also made modest gains. Independent labels have managed to maintain a healthy market share, representing over 30% of sales in various formats. There’s a growing concern about streaming algorithms favoring US content, potentially stifling the reach of UK artists.
The live performance sector remains vibrant, though growth has slowed compared to previous years. Major tours, particularly those by artists like Taylor Swift and Take That, have driven ticket sales, but balancing competitive pricing amid rising costs poses a challenge. However, 2025 promises to be a busy year with several anticipated tours from prominent artists.
Lastly, the brand and image category, while smaller in scale, can greatly enhance overall revenue for artists and businesses. Non-traditional recorded income and sync licensing saw a rebound in 2024, bringing optimism back to this segment. Merchandise sales have also remained strong, showcasing the importance of strategic partnerships and innovative approaches within the industry. With ongoing challenges from market fluctuations and external factors like Brexit, adapting to these changes will be crucial for continued growth.
