The UK’s music business scaled new heights, contributing a record £7.6bn to the economy last year despite the ongoing crisis facing small music venues and the threat from artificial intelligence song writing.
Powered by stars ranging from Adele to Harry Styles and live UK performances from artists including Blur, and Pink, Elton John and Ed Sheeran, there were also performances from new talents including The Last Dinner Party and English Teacher, the industry pulled out all the stops to lift revenues 13 per cent from £6.7bn in 2022, according to industry body UK Music.
Music exports revenue also hit a new high of £4.6bn – up 15 per cent from £4bn the year prior in 2022. The success was also measured in record numbers of people working in the industry with employment topping a record 216,000 (full-time equivalent posts) – up 3 per cent from 210,000 in 2022.
Tom Kiehl, UK Music chief executive 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. A decade which began with the pandemic, causing much devastation to the sector, has seen a resilient music industry emerge.
But he warned it was not “a time to be complacent”, warning that the UK music industry “has vulnerabilities too” which threaten its world-leading status.
“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.
Around 125 grassroots music venues across the country closed last year and more 350 are at risk of closure, according to the Music Venue Trust charity. An estimated 192 festivals have disappeared since 2019 and 60 festivals announced a postponement, cancellation or closure this year to date, according to the Association of Independent Festivals.
Musicians fear AI can be use to replicate and produce music at a rate and a quality beyond humans, threatening their creativity.
“We are now at a tipping point, and if the problems we face are not addressed then future growth cannot be guaranteed.”
Grassroots music in the UK, where the next generation of talent is expected to come from, is under threat he warned. Developing talent was suffering from low fees and high costs, small venues and independent festivals were still in a precarious position while recording studios faced high costs.
“Coupled with a long term decline in music education, this all hinders the music industry’s ability to build a talent pipeline for now and for the future.” he said.
The industry body has called on ministers to promote changes to the law that safeguard against unregulated AI, cap secondary ticket resale prices, ensure children across the UK have access to free music making by recruiting 1,000 music teachers as well as fighting for visa-free touring for musicians and crew.
Creative Industries Minister Sir Chris Bryant has called on the live music industry to work together to introduce a voluntary levy on all stadium and arena tickets to help support grassroots venues, festivals, artists and promoters.
The call for support also won the backing of Culture Secretary Lisa Nandy, who said: “From global superstars like Harry Styles and Adele, internationally-renowned festivals like Glastonbury and Parklife and a huge range of vibrant subcultures, the music industry is a real British success story. These impressive new figures underline how vitally important it is to driving growth – as it boosted its value to our economy by nearly a billion pounds in one year.
“I am committed to ensuring that the government works with industry to build upon its current success in the years to come. By supporting vital grassroots venues, introducing new secondary ticketing protections for fans and ensuring all children can access high quality music education in schools, we can help the sector go from strength to strength in the future.”