Music recorded in the UK continues to hit a high note, with revenue up 12.8% to £1.26bn after the 2020 pandemic crisis.
According to data from BPI, the association of independent and major record labels, the boost marked the industry’s seventh consecutive year of revenue growth.
While streaming was a key driver of this increase, up 13.7% to £837.2m, physical formats on CD and vinyl continue to grow at a steady pace across the industry .
Vinyl continued its revival, up 34% over the year, with more and more young people turning to turntables.
However, the gold star arguably goes to Compact Disc, which, thanks to releases from ABBA superstars Adele, Dave and Ed Sheeran, contributed £117.2 million in revenue – an increase of 1 .4% on the year and the first increase since 2017 .
Overall physical sales rose 14.6% to £241m, coinciding with an increase in the number of independent record stores, recently reported by the Entertainment Retailers Association (ERA). which increased from 390 in 2020 to 407 in 2021.
Geoff Taylor, Managing Director of BPI, BRIT Awards & Mercury Prize, said: “After a difficult few years, we are also delighted to see growth across the industry, including physical formats, synchronization, digital rights execution and beyond. This growth is generating significant benefits for the wider music community, including better compensation for a broader artist base and additional label investment in new talent.
“It is important to remember that even today we have not fully recovered from years of decline and in real terms we remain a much smaller industry than 15 years ago. We urge the music community to come together to continue to grow the market, for example by helping UK music get as much of the growth in overseas streaming as possible. It will be an effective way to maximize the success of UK music creators and the ecosystem that supports them.
Just yesterday, UK music chief Jamie Njoku-Goodwin wrote to Chancellor Rishi Sunak urging him to reconsider the VAT hike, warning that the upcoming hike would hit an already battered industry .
Calling on Sunak to drop a steep rise in concert and live event tickets that was due to take effect on April 1, he wrote: “The planned VAT hike couldn’t come at a worse time for millions of fans. music industry and the live music industry, which has been shut down for nearly two years due to the pandemic.
“We have seen during these dark times of confinement how important music is for people’s mental health and how it has helped us through really difficult times.
“Raising VAT to 20% would be extremely damaging to the music industry and leave music fans facing a crisis in the cost of concerts. The hike would come at a time when we are rebuilding post-COVID-19, with hundreds of concerts planned over the next few months.
“We urge the Chancellor to give a little boost every day to people who are already facing rising prices and grim headlines by scrapping the ticket tax and abandoning the VAT hike.
“Abandoning the planned VAT hike would help keep ticket prices low for fans and help music businesses pay off the debts they have racked up during the pandemic, generate thousands of new jobs and nurture new talent.
“It would help the music industry continue to recover and rebuild from the COVID-19 pandemic, which has wiped out approximately one in three jobs in our industry.”
Instead, UK Music, which represents the collective interests of the production side of the UK’s commercial music industry, has suggested a six-point plan, including extending the current 50 per cent discount on professional tariffs. concert halls, and more funding to help UK artists on tour. the EU.