UK Music Industry Hits Record £7.6 Billion Contribution to UK Economy
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It’s official: the UK music industry is hitting all the right notes. According to the newly released This Is Music 2024 report from UK Music, the sector contributed a record-breaking £7.6 billion to the UK economy in 2023—a 13% increase from the previous year. But while the figures are impressive, challenges remain for an industry navigating a fast-changing global and domestic landscape.
A Year of Big Numbers and Bigger Names
2023 was a stellar year for music lovers, with legendary acts like Beyoncé, Harry Styles, and Blur delivering unforgettable performances across the UK. Meanwhile, rising stars like The Last Dinner Party and English Teacher made waves with standout sets.
On the global stage, British talent shone brightly, with artists like Coldplay, Arctic Monkeys, and Adele captivating audiences worldwide. International tours and residencies helped propel UK music exports to £4.6 billion, a 15% increase from 2022.
And it’s not just the stars who are benefitting. Employment in the music industry also hit a record 216,000 full-time equivalent jobs, up 3% from the previous year.
The Challenges Beneath the Headlines
Despite these record-breaking successes, the report highlights several storm clouds on the horizon:
- Grassroots music venues are in crisis, with 125 closing their doors last year and more than 350 at risk of closure.
- The festival scene is shrinking, with 192 festivals disappearing since 2019 and 60 more cancelled or postponed in 2024.
- British artists’ share of global music consumption has fallen sharply, from 17% in 2015 to less than 10% of global audio streams today.
The industry is also grappling with the ongoing fallout of Brexit. An alarming 87% of music creators surveyed reported a drop in income due to Brexit-related challenges, up from 82% the previous year.
What Needs to Change?
For UK Music’s Chief Executive Tom Kiehl, the message is clear: while the UK music industry is resilient and thriving, it cannot afford to rest on its laurels.
“This is not a time to be complacent. Despite strong headline figures, the UK music industry faces significant vulnerabilities. We are now at a tipping point. If the problems we face are not addressed, future growth cannot be guaranteed.”
To safeguard the sector’s future, Kiehl has identified four urgent priorities:
- Regulate AI: Introduce laws to protect against the unregulated use of generative Artificial Intelligence, ensuring artists’ rights are upheld.
- Universal Access to Music Education: Guarantee free music-making opportunities for every child and young person across the UK.
- Cap Secondary Ticket Resale Prices: Protect fans and artists from exploitative ticket resales.
- Visa-Free Touring: Secure easier touring arrangements for musicians and crew to compete globally.
Turning Vulnerabilities into Opportunities
The report doesn’t shy away from the challenges but frames them as opportunities for growth and innovation. For example, AI, while presenting risks, could also be a powerful tool for creativity if properly regulated. Similarly, addressing venue closures and festival cancellations could pave the way for a more sustainable grassroots scene.
UK Music’s Manifesto for Music, which includes a detailed roadmap for these changes, calls on the government to step up and support the sector through targeted policies and investment.
Why It Matters
Music is more than an economic powerhouse—it’s a cultural cornerstone of the UK’s identity. From the global success of British artists to the local gigs that nurture emerging talent, every part of the ecosystem plays a vital role.
With exports booming and live music thriving, the UK music industry has the potential to grow even further. But as Tom Kiehl puts it, “The time to act is now.”
To read the full This Is Music 2024 report or explore the Manifesto for Music, visit UK Music. 🎶
TL;DR: The UK music industry smashed records in 2023, contributing £7.6 billion to the economy and generating £4.6 billion in exports. But with grassroots venues closing, festivals disappearing, and artists facing global competition, bold action is needed to secure its future.
