UK Music has just released its annual Music by Numbers report, which shows that the British music industry generated £5.2 billion ($6.72 billion) in 2018, with live concerts generating £1.1 billion ($1.42 billion) of this amount.
The news comes amid mounting uncertainty about Brexit. Many believe that, if the United Kingdom goes through with its plan to withdraw from the European Union, it could dramatically affect touring artists in the country and those who travel to see them.
Music tourism is a large source of revenue in the country, according to the UK Music report. It contributed £4.5 billion ($5.81 billion) to the British economy in 2018, which is an increase of 12% from the year before. This number, which is driven by festivals such as Glastonbury, includes both direct and indirect revenue while the $6.72 billion total includes only direct revenue.
At the same time live music revenue in the country rose 10% in 2018, recorded music revenue rose 5% to £568 million ($734 million). Music exports also rose 8% while label revenue grew more modestly at 3%. The report further found that more people than ever are working in the British music industry: nearly 191,000 people.
Another British music industry report also had positive findings.
The UK’s Entertainment Retailers’ Association released a report that indicated that the music streaming market in the United Kingdom could double by 2023. They believe that revenue could rise from its current £829 million ($1.1 billion) to as much as £1.6 billion ($2.1 billion), depending on how aggressively the industry courts new users and markets premium services. This represents a compound annual growth rate of 18%.
Pedro Sanches, who is a partner in OC&C — which produced the report for the association — said, “Our study indicates the UK music industry has a significant opportunity to increase the size of the market beyond even the most bullish expectations. It is clear that if the industry can come up with tailored offers which deliver value to specific groups of consumers then there’s a major prize at stake.”