The latest report reveals how the music industry’s financial vitality rests on four key assets: composition, recording, live performance, and brand/image.In a new report from UK Music titled “This Is Music,” the financial health of the music industry is scrutinized through the lens of four essential commercial assets: musical composition, recorded music, live performance, and brand/image revenues. These assets not only underpin the industry’s economic value but also contribute significantly to gross value added (GVA), exports, and job creation across the sector.Musical CompositionSongwriters and composers lay the groundwork for the industry by creating the songs that drive it. With support from music publishers and Collective Management Organisations (CMOs), revenues from composition saw a growth of 5% in 2024, reaching £1.7 billion, up from £1.6 billion in 2023.
This figure encompasses earnings from various licensing avenues, including sync licenses for film and TV, as well as print and public performance rights.In a notable achievement, PRS for Music paid out over £1 billion in royalties for the first time, totaling £1.02 billion, which marks an 8.1% increase from 2023. MCPS also reported over £200 million in payouts during its centenary year, solidifying the significance of music publishing as a stable revenue source. Despite AI’s growing presence, which poses unique challenges to the composition sector, the versatility of musical composition remains a stronghold for the UK music industry.Recorded MusicThe recorded music sector, comprising artists, producers, engineers, and distributors, reported revenues of £1.49 billion in 2024, a rise of 4.8% from the previous year.
This total includes income from physical sales, downloads, and streaming. Streaming revenue alone was a highlight, climbing to £1.02 billion—a 5.7% increase from 2023. Independent labels have shown resilience, capturing significant market shares in CD, vinyl, and digital sales.However, there are concerns among independents about streaming algorithms potentially favoring U.S. artists, creating an uphill battle for smaller markets like the UK.
Despite a dip in UK artist sales from 35.7% to 33.6%, the industry’s overall health appears stable with continued growth in various revenue streams.Live PerformanceThe live music sector is showing signs of sustained growth, though at a slower pace compared to last year. Major tours have driven ticket sales, with artists like Taylor Swift leading the charge alongside others like Bruce Springsteen and Foo Fighters. Yet, increased costs are a pressing issue for promoters and smaller festivals, making ticket pricing a delicate balancing act.
The industry faces challenges, particularly at the grassroots level, where independent venues and festivals have struggled to survive amidst rising operational costs.As the scene gears up for an exciting 2025 with anticipated tours from Oasis, Coldplay, and Dua Lipa, there remains a pressing need to support smaller acts and venues to ensure a vibrant live music culture.Brand and ImageWhile revenues from brand and image are comparatively smaller, they can provide crucial financial boosts for artists. Non-traditional recorded income experienced fluctuations, almost doubling in 2022 before a sharp decline in 2023, coinciding with the SAG-AFTRA strike. However, 2024 saw a resurgence with sync licensing and merchandise companies reporting steady growth.
By collaborating closely, artists and merchandise companies are finding creative ways to enhance revenue streams, even as challenges like Brexit loom large over the sector.Overall, the economic structure of the music industry is complex and multifaceted, relying on a mix of traditional and emerging revenue streams that continue to evolve in response to broader market changes.
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