BPI reports that revenues for recorded music in the UK rose for an eighth successive year in 2022, fuelled by streaming growth, continuing demand for vinyl, and substantial label investment in artists.
The BPI, the representative for major labels and a number of independent record companies across the UK, has reported that UK-recorded music revenue rose 4.7% year-on-year to reach £1.32 billion ($1.56 billion at current exchange rates) in 2022.
This figure includes revenues from synchronization and public performance and represents an eighth consecutive year of growth, up by 36% on the £968.6 million reported in 2017. This number is the highest nominal annual amount on record, but when adjusted for inflation falls hundreds of millions of pounds short of the total reported in 2006 — the first year that includes sync and public performance.
Growth in 2022 was fueled once again by climbing streaming revenues which rose 6.3% year-on-year to £885 million, which now accounts for 67.2% of industry revenue — up from 66.2% in 2021. The rate of streaming growth and record label investment in A&R and marketing is enabling many more artists to succeed through music.
Overall revenue from music consumption on physical formats fell by 10.5% to £215.7 million, with rising revenue of £119.5 million from the purchase of albums on vinyl up 3.1%, helping to offset a 23.7% drop in CD revenue to £89.5 million. Vinyl now accounts for 55% of the revenue from music on physical formats; vinyl generated more trade revenue in 2022 than CD for the first time since 1987.
“The hard work and creativity of UK artists and labels meant that 2022 was another great year for British music, but we must guard against any complacency in the face of growing challenges and keep promoting and protecting the value of music,” says Sophie Jones, BPI Chief Strategy Officer and Interim CEO.
“That’s why labels continue to innovate and invest in new talent and areas to connect more artists and fans while driving additional revenues. The UK environment has always enabled recorded music to thrive — something we must safeguard — but now we need the music community to unite and create the impetus for further growth so that we can build on an already strong foundation to future proof the success of British music in an increasingly competitive global music market.”
Streaming revenue, up 6.3% (£885 million), was primarily shaped by paid subscriptions to services like Amazon, Apple, Spotify, and YouTube, rising by 4.8% to £762.8 million. Though worth less than a tenth of the value of subscriptions, ad-funded streaming income grew by over a fifth in 2022 (22.3%) to £62.5 million. Revenue from digital downloads continues to decline as consumption accelerates its shift to streaming, falling by 17.5% (which is still lower than the 23.2% drop in 2021). Downloaded tracks and albums still generated £27.6 million.