UK music subscription revenues saw a modest rise last year, but inflation matched the growth, raising concerns about sustainability.
The latest figures from the UK’s Entertainment Retailers’ Association (ERA) reveal that consumer spending on music streaming subscriptions increased by 3.2% year-on-year in 2025. Total revenues reached approximately GBP £2.045 billion (USD $2.69 billion), a rise from GBP £1.982 billion in 2024. This translates to an annual increase of GBP £63 million.
However, the growth rate for 2025 represents the slowest increase in the past five years. For comparison, 2024 saw a growth rate of 5.9%, while 2023 experienced a robust 10.2% rise. Notably, the 3.2% growth rate this year aligns with the UK Office for National Statistics’ inflation rate of 3.2% for the 12 months ending November 2025, suggesting that while revenues increased, they haven’t outpaced rising costs.
The recent slowdown contrasts sharply with earlier years, where streaming subscription revenues in the UK grew significantly, with double-digit increases reported in both 2020 and 2021. ERA has also adjusted its previous year’s revenue figures, reducing the 2024 total by GBP £36 million.
In a notable development, Spotify announced a price increase for several subscription tiers towards the end of 2025. The Premium Individual tier rose by GBP £1 to GBP £12.99, marking an 8.3% hike. Similarly, the Duo and Family plans increased to GBP £17.99 and GBP £21.99, respectively. Over the past two and a half years, the Premium Individual tier has seen a 30% increase in price.
Additionally, while streaming revenues saw modest growth, physical music sales and downloads were also part of the ERA’s reporting. Physical music revenues, which include CD and vinyl sales, surged by 11.5% year-on-year in 2025, totaling £368.1 million (USD $484.2 million). This growth was largely driven by vinyl sales, which increased by 18.5% to £238.5 million. CD revenues remained steady, down just 1% to £125 million, while sales of other physical formats like cassette nearly doubled.
Despite the decline in download sales, which fell by 3.5% to GBP £39.9 million (USD $52.5 million), the total recorded music sales in the UK for 2025 reached GBP £2.453 billion (USD $3.23 billion), marking a 4.2% year-on-year increase and the highest revenue figure in the UK recorded music industry’s history.
ERA CEO Kim Bayley emphasized the importance of streaming services in funding various music programs and promoting UK talent. He noted that streaming services and retailers are making significant contributions to the emergence of new UK artists.
In a broader context, the combined UK entertainment market, which includes music, video, and games, reached GBP £13.257 billion in 2025, reflecting a 7.1% increase year-on-year. This figure signifies the continued growth of the entertainment sector, outpacing the projected GDP growth of 1.5% for the UK economy. Bayley highlighted that despite economic challenges, streaming services and retailers are capturing a greater share of consumer spending, reinforcing their vital role in the UK’s creative economy.
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