Spending on the UK live music sector and associated businesses has hit a record £6.1bn as a wave of huge acts from Elton John to Beyoncé cashed in on the pent-up demand to attend shows in person.
Live, the federation representing Britain’s live music industry, revealed that the sector’s contribution to the UK economy topped £6bn for the first time last year, as fans denied live experiences in the Covid pandemic rushed to snap up tickets.
The figure, which adds up the economic impact of more than 55,000 gigs, concerts, festivals and events, is 17% up on 2022 and 35% up on pre-pandemic 2019.
The £6.1bn is derived not only from direct ticket sales but also from spending at an event and at businesses nearby that benefited in the time period around the date it was held.
The growth in the sector last year was fuelled largely by concert revenues, which climbed 19% year on year, driven by big tours such as those by Beyoncé and Coldplay, which accounted for almost three-quarters of the total £6.1bn economic impact.
Emma Bownes, the vice-president of venue programming at AEG Europe, which owns venues including the O2 in London, said that 2023 was its biggest ever for ticket sales and number of shows.
She also noted that the most artists since the O2 opened in 2007 opted to perform five or more shows, as acts including Madonna, Elton John and the Killers soaked up mass demand.
“It was our busiest year,” she said. “There is an appetite for shared experiences in general, people haven’t been able to go to gigs to see their favourite acts, they’ve missed that, and now they are coming out in their droves.”
Jon Collins, the chief executive of Live, said the buzz around Taylor Swift’s Eras tour, which came to the UK this summer, and the announcement of the reunion of Oasis for gigs next year “serves as a reminder of the economic benefits live events can deliver to local economies across the UK”.
He cites figures from the National Arenas Association showing that for every 10,000 people who attend a live music show, £1m is spent with businesses around the venue, such as restaurants and bars, transport providers, retailers, independent shops and hotels.
“These local benefits spread widely to provide a significant boost to the UK economy,” Collins said.
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Live’s figures show that London dominated the live music scene, accounting for almost 31% of the total £6.1bn economic impact revenues. The capital was followed by Manchester at 7.4% and Glasgow at 5.5%, with Birmingham, Edinburgh, Cardiff, Belfast, Leeds, Sheffield and Liverpool making up the rest of the top 10.
The report also estimated that the live music industry supported jobs for almost 230,000 people last year, an increase of 9.4% since 2019.
However, despite the record year, Live’s report warns that not all parts of the industry are thriving. It recorded the closure of 125 grassroots music venues and the cancellation of 36 festivals last year.
The trade body renewed its call for the government to support the recommendation of the culture select committee’s report on the grassroots music sector that came out in May, which called for a temporary cut to the 20% VAT on tickets “which is damaging and uncompetitive compared to other European markets”.
Collins said 2023 “delivered significant growth for many sections of the live music ecosystem”, adding: “We had some of the biggest names in music sell out tours and festivals across the UK. But we also saw pressure build up across our industry, leading to grassroots music venues and festivals left with no choice but to close down in the face of rising costs.”