Music industry’s contribution to UK economy climbs to £4.1bn
Image: UK-based, global chart topper Sam Smith
UK music continues to be a source of great fascination and enjoyment to fans around the world. Last year, one in seven of all artist albums sold across the world were from the territory. So it’s no surprise that in 2014, the UK music industry is estimated to have contributed £4.1 billion (Australian $8.8 billion) in GVA (Gross Value Added) to the economy.
This staggering figure is according to commercial music trade organisation UK Music’s annual economic study Measuring Music 2015. It virtually doubles the 2.6% growth shown by the economy as a whole, where some of the manufacturing sector is in recession.
Its CEO Jo Dipple said, “2014 proved to be another hugely successful year for British music. The sector outperformed the rest of the U.K. economy and grew by 5% year-on-year. Now in its third year, Measuring Music helps show the true weight of our commercial music sector and the scale of its global reach and impact.” The industry’s 2013 figure was £3.8 billion ($8.1 billion).
Dipple cited “artists like Sam Smith, Ed Sheeran, Pink Floyd, Ellie Goulding, One Direction and Calvin Harris” with driving the “U.K.’s cultural footprint and soft power” and help recorded music exports rise 17% to £2.1 billion ($4.5 billion). This is over half of the industry’s GVA – well above the economy-wide ratio of around 30%.
The 2014 figure marked a small dip from 2013’s £2.2 billion which the organisation attributed to fluctuating exchange rates. British musicians and composers generated £926 million ($1.9 billion) globally, with publishing totalling £519 million ($1.1 billion) in value.
The second largest contributor was revenue from live events, generating £924 million ($1.9 billion) from 2013’s £789 million ($1.7 billion). Music tourism was valued at £3.1 billion ($6.6 billion), with almost 26.7 million foreigners coming to the UK solely to attend music events
The economic contribution from the record industry fell again for a third year, to £615 million ($1.3 billion) from £618 million ($1.33 billion), while publishing fell from £436 million ($$940.6 million) to £410 million ($$884.5 million). But this was offset by rising income from music producers and recording studios (£116 million or $250.2 million, from £102 million or $220 million) while collecting societies, managers and trade bodies rose 11% to £89 million ($192 million).
Other figures showed that labels and publishers invested £500 million ($1.07 billion) in new British talent, and the industry employed a total of 117,000 people full-time. Most of them (69,000) were musicians, composers, songwriters and lyricists. Live music employed 25,000, record producers and studios 10,900 and the record industry 8,500.
The second biggest employer was live music (25,000), followed by record producers and studio staff (10,900). Around 8,500 people were employed on a full-time basis in the record industry in 2014.
But worrying figures were that 35% of music industry employees do not pay into pension schemes, and 21% had done free work over the 12 months to further their careers.
UK Music Chairman Andy Heath pointed out: “The sector is growing again, and that is thanks to the recognition and adoption of new technology and the continued power of a vibrant live music sector. We continue to lead the world in song writing, composing, production, recordings and live performances. The UK is also the second largest provider of musical repertoire in the world thanks to our unique ecosystem that helps build and nurture both creative and commercial opportunities across all areas of the industry.”
In his foreword to the report, Culture Secretary John Whittingdale wrote, “It (the music industry) creates wealth and jobs as well as providing entertainment to millions. UK Music’s Measuring Music is extremely useful in describing the economic impact of commercial music.
“Its publication coincides with a round table meeting that I am hosting with a wide range of representatives from across the music industry to discuss how we can ensure that British music remains at the top of the charts. As Secretary of State, I want to do all I can to ensure that British music continues to thrive.”
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