Streaming subscription growth and sales of vinyl albums have propelled UK recorded music revenue to an all-time high of over £2.223 billion.
The new high was achieved in the chart week ended Friday, February 23, according to numbers calculated on a moving-annual-total basis by digital entertainment and retail association ERA, which represents virtually every significant streaming service and music retailer in the UK.
It follows Music Week’s Q1 snapshot, which showed continuing growth for vinyl sales.
ERA suggested that it marks a new milestone for the UK music business and finally draws a line under the era of piracy which saw music sales decline to just £1 billion in 2013. The new record result for revenue does not factor in the effect of inflation.
“This is a day many thought would never come,” said ERA CEO Kim Bayley (pictured). “It is a red letter day for music and the artists and songwriters who soundtrack our lives. There’s still a long way to go, but these numbers show that thanks to the innovation and investment of streaming services, music is on the right track.”
The BPI will issue its own figures on UK label trade revenue at a later date.
There’s still a long way to go, but these numbers show that thanks to the innovation and investment of streaming services, music is on the right track
Kim Bayley
The UK music industry hit its previous peak in October 2001, when the No.1 single on the was Kylie Minogue’s Can’t Get You Out Of My Head and the No.1 album was Gold – The Greatest Hits by Steps. Minogue will be named a BRIT Awards Global Icon at this weekend’s ceremony.
Bayley said: “We have come a long way. No one should underestimate the seriousness of the plight the music industry faced in the decade following 2001. It was an existential crisis. Luckily a new generation of music loving tech entrepreneurs were able to see a way to a new model, based on subscriptions rather than sales.
“Today draws a line under 2001 and highlights the fact that music sales have more than doubled since 2013. That’s great, but after 20 years of inflation, it’s still not enough. The next milestone is to see music exceed 2001 not just in nominal terms, but in real terms too.
“As ever the key to growth is for the music industry to embrace innovation. From the wax cylinder to the CD and indeed streaming, technology is the key to growth in music.”
News of the UK music industry hitting a new all-time high comes as ERA prepares to publish its annual statistical review of the entertainment industry, the ERA Yearbook. The book charts a year in which combined music, video and games sales grew by 7% to £11.9bn.
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