Arts & Culture

UK music enjoys £7.6bn record year despite grassroots challenges

UK music’s contribution to the economy surged to a record £7.6bn in 2023 despite a challenging year for festivals and grassroots music venues.

UK Music’s This is Music 2024 report found that the sector was up 13% year-on-year in terms of gross value added (GVA) to £7.6bn in 2023. The report described a stellar year for live music, citing Beyoncé, Elton John and Ed Sheeran all playing big UK shows. It also highlighted standout performances from emerging acts like The Last Dinner Party and English Teacher.

UK music exports revenue in 2023 also hit a new high of £4.6bn, which was up 15% compared to 2022. The major contributors to this figure included Harry Styles and Coldplay, while Adele continued her 2023 residency at Caesars Palace Las Vegas.

Total UK music industry employment in 2023 hit a record 216,000 full-time equivalent posts, although this was up just slightly by 3%.

UK Music’s chief executive Tom Kiehl said the This Is Music 2024 report is evidence that the “music industry is ideally placed to turbo charge the new UK government’s mission to secure the highest sustained growth in the G7.”

Grassroots music challenges

However, the report — which can be found here — also cites challenges faced by festivals and grassroots music venues, and a concerning drop in the popularity of UK artists on streaming services.

Referencing figures provided by Music Venue Trust and the Association of Independent Festivals, around 125 grassroots music venues across the country closed last year, while an estimated 192 festivals have disappeared since 2019. UK artists now cumulatively account for less than 10% of global audio streams, whereas their collective share of global music consumption was estimated at 17% in 2015, according to the BPI.

Kiehl said: “The music industry is ideally placed to turbo charge the new UK government’s mission to secure the highest sustained growth in the G7.

“This is not a time to be complacent, however. Far from it in fact. This is Music 2024 tells the story, based on real evidence and data from across the sector, that despite some very strong headline figures in 2023, the UK music industry has vulnerabilities too.

“Increasing global competition, tough financial conditions for artists and the grassroots, as well as the wild west that is generative Artificial Intelligence (AI), are all conspiring to be significant challenges for the sector.”

Call for urgent action

UK Music highlighted four key areas where urgent action was needed to help the UK’s music sector grow in an increasingly competitive global market. These include changes to the law that safeguard against unregulated AI, a cap on secondary ticket resale prices, visa-free touring for musicians and crew and ensure every child and young person across the UK has access to free music making.

Kiehl said: “We are now at a tipping point, and if the problems we face are not addressed then future growth cannot be guaranteed.”

Last week, the government gave its backing to the introduction of a voluntary levy to be applied to all tickets sold for stadium and arena shows. The proceeds would be used to aid grassroots music venues around the country.