The UK music market is booming, but many artists are still feeling the pinch.
According to new data from the Entertainment Retailers Association (ERA), the UK music industry experienced solid growth in 2025, with consumer spending and streaming figures reaching new heights. However, this growth is accompanied by indications that the pace may be slowing, and many artists continue to face financial challenges.
Total recorded music spending in the UK rose approximately 4.2% year-on-year, reaching around £2.45 billion. This increase also contributed to a record £13.3 billion in consumer spending across the broader entertainment sector, which includes video and gaming. Despite these gains, the music industry is dealing with mixed signals regarding its future sustainability.
Streaming continues to lead the charge, with UK audio streams surpassing 210 billion in 2025, marking the first time the industry has broken the 200 billion mark. Nonetheless, year-on-year growth has slowed to about 5.5%, a noticeable decline from the double-digit increases seen in previous years.
Interestingly, while digital downloads are on the decline, physical formats are experiencing a resurgence. Vinyl sales saw an impressive 18% increase, contributing to an 11.5% rise in the physical music segment. This is a rare positive development in an industry primarily dominated by digital consumption.
Subscription income from streaming platforms remained strong, surpassing £2 billion again. This demonstrates that paid listening still serves as the primary revenue driver for recorded music, even as growth rates begin to taper. Additionally, breakout talents from the UK have significantly influenced consumer engagement and sales, fueling record content levels thanks to their viral hits and supportive initiatives in both streaming and physical sales.
However, the brighter figures come with a significant caveat. Many independent and grassroots artists find themselves struggling to earn a sustainable income. Rising touring costs and the closure of over 125 independent venues are placing considerable pressure on this sector. Industry surveys reveal that average earnings for musicians remain low, and the ability to convert online engagement into reliable revenue remains a challenge.
The UK music market’s notable spending in 2025 underscores both the persistent consumer demand for music and the evolving ways in which music is consumed. Streaming remains dominant, but its impressive growth is showing signs of fatigue. On a more encouraging note, physical formats, particularly vinyl, are thriving, providing some relief to artists amid rising costs. Nevertheless, revenue increases are not evenly distributed across the industry, especially at the grassroots level.
For industry leaders and policymakers, these trends highlight the urgent need to strike a balance between commercial success and sustainable support for artists, ensuring that the creative ecosystem—from independent venues to artist development initiatives—can continue to thrive.
