This Key Note Market Report examines the UK music industry across the areas of recorded, live and amateur music, as well as the market for music licensing. The UK music industry remains a key creative sector in the UK, with significant economic value, in addition to its considerable social and cultural importance. It remains massively popular among UK consumers, with more than two-thirds of adults listening to music on a daily basis.
The industry has, however, been in transition in recent years, as consumer demand for digital services has exploded alongside Internet, computer hardware and mobile device uptake. Both recording companies and retailers have been required to realign supply with a market increasingly less reliant on sales of physical CDs, and more focused on consumption via downloading, advertisement-supported streaming, and premium monthly subscriptions services.
While physical sales continued to account for the largest shares of total sales in 2014 — albeit just barely — the digital market is the main driver of growth, with album downloads rising by 63.7% over the last 5 years, while single track downloads have grown by more than one fifth. However, music streaming services have been the key driver during the report’s review period, with total income from subscription services alone tripling in value over the last 5 years.
In the live and amateur music sectors, consumer expenditure struggled in 2014, with growth slowing significantly in live music spend, while expenditure on musical...