British stars drive UK record label revenue to fresh high of £1.1bn
Revenue for UK record labels rose to just under £1.1bn last year, driven by the continued growth of streaming and investment in new music.
The figures mark the fourth consecutive year of growth and is the highest level of annual trade income in more than a decade.
Streaming income — driven by popular subscription services such as Spotify — jumped 22 per cent to £629m in 2019.
Within streaming, ad-supported audio platforms saw revenue rise 30 per cent, while video streaming revenue was up 19 per cent.
Though most of the revenue is now earned from digital formats, nostalgic demand for vinyl continued to grow, with sales of the vintage format rising 16 per cent to £66.3m.
The overall growth in revenue was boosted by the success of established British stars such as Ed Sheeran and Adele, as well as more recent breakthroughs including Lewis Capaldi, Dave and Dua Lipa.
“The music industry’s success is powered by record labels’ up-front investment and shouldering of risk, so it is important to the sustainable health of the music ecosystem that label revenues grew on last year’s results,” said Geoff Taylor, chief executive of BPI, which published the figures.
Investment by UK record labels in talent scouting and development — a division known as A&R (artists and repertoire) — accounts for up to a quarter of industry revenue from sales and streams each year, according to BPI figures.
But the trade body warned of continued “structural factors” preventing the recording sector from reaching its revenue peak of two decades ago, including low levels of returns from tech platforms and illegal download websites.
“British music faces intense competition at home and abroad, is undervalued by some tech platforms and is undermined by widespread illegal sites,” Taylor said.
“It is time for a new partnership with government to unleash the full potential of our music industry to benefit our culture and our economy.”