Industry Snapshot
Music
A concise intelligence brief on the Music sector — covering market size, key trends, regulatory context, and business opportunities across the UK. Published by poundswise.
Introduction
The UK music industry encompasses the creation, distribution and sale of music in a variety of physical and digital formats, as well as the performance and promotion of live music. The industry is highly competitive involving major and independent record labels, recording studios, music venues, streaming platforms and retailers, along with thousands of musicians and technicians.
Although the music industry has recorded strong growth over the last couple of years, its performance has been uneven. For example, music streaming sales have increased significantly, while physical music sales and independent music venues have struggled.
Industry at a Glance
2,011
Independent music label businesses in 2023, up 1.4% year-on-year
+8.1%
Year-on-year increase in industry revenue in 2023
+5.8%
Year-on-year increase in musicians working in the UK in 2023
16%
Proportion of grassroots music venues lost in 2023
Charts & Data
Music Sales by Type in 2023
Streaming dominates UK music revenue. Physical sales (predominantly vinyl) remain a small but growing share, while download sales continue to decline.
Streaming
Dominant and growing — subscriptions & ad-supported
Live music
Concerts, festivals and live events
Vinyl / physical
Growing niche — 5.9m units sold in 2023
Downloads
Declining — shift to streaming
Sync / licensing
Music in TV, film and advertising
Digital Music Forecast Growth Rate
UK digital music revenues are forecast to grow steadily, driven by streaming subscription growth and emerging revenue from short-form video platforms such as TikTok and YouTube Shorts.
2019
2021
2023
2025
2029
2019 — Pre-pandemic baseline
2021 — Recovery — streaming surges
2023 — +8.1% revenue growth
2025 — Forecast continued growth
2029 — +11.4% forecast live music growth
Industry Trends
- —
38.8% increase in value of total music sales between 2019 and 2023.
- —
125% increase in value of music streaming sales between 2018 and 2023.
- —
11.4% forecast increase in value of live music sales between 2023 and 2029.
- —
18.8% fall in value of physical music sales between 2018 and 2023.
Industry Outlook
Grants to support grassroots music
Grants of up to £40,000 are available to support the grassroots music sector in England. The fund, delivered by Arts Council England, is open to a range of venues and professionals crucial to the long-term sustainability of grassroots music. Eligible applicants include rehearsal and recording studios, festivals, live music venues and independent promoters.
Independent festival sector at risk
Independent festival organisers have warned that the future of the sector is at risk due to rising costs and slower ticket sales. Many organisers are also still struggling with the cost of repaying loans taken out during the Covid pandemic. Changes to immigration rules are also making it more difficult for musicians from overseas to play at UK festivals.
Demand for vinyl continues to grow
Demand for vinyl records is expected to continue to increase in 2024/25. This follows strong growth in 2023 when vinyl sales increased by 11.7% to reach 5.9 million units. Collectability, better sound quality, design and nostalgia are all contributing to the increase in vinyl sales. More consumers are also turning to independent retailers to buy second-hand and harder-to-find vinyl records.
Digital tech reshaping consumption
Sophisticated digital technology is expected to reshape how consumers consume music over the next five years. The use of augmented reality to deliver virtual concert experiences is set to increase. More music platforms are also developing AI-enabled 'personal DJs' that generate bespoke playlists based on a listener's mood, preferences and activities.
Calls to address risks of AI
Industry experts are urging the Government to take action to protect music creators from the risks posed by artificial intelligence. In particular, the industry has called for measures to protect creators' copyright and ensure that their intellectual property is not used unfairly to generate music using AI. Musicians have also called for music generated by AI to be clearly labelled for consumers.
More musicians leaving industry
Almost half of musicians are concerned that they'll be forced to leave the industry due to the cost of living. Many musicians have not seen their rates increase for several years, making the cost of meeting basic expenses, travelling to gigs and buying equipment more challenging. Brexit has also made it more difficult for musicians to tour in Europe.