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Gloucestershire Business News

Latest revenue figures are music to ears of record bosses

UK record labels are celebrating their highest annual income for five years thanks to the popularity of both modern and older ways of listening to music.

According to the British Phonographic Industry (BPI), the combined trade revenues generated through streaming, sales of music across physical and download formats, performance rights, and music licenced for use in film and TV, games and advertising, rose by just over five per cent to £926million in 2016.

The BPI said income was driven largely by the 61 per cent increase in revenues from streaming, which accounted for 30 per cent of overall label revenues.

Subscription forms the key element of streaming revenues, accounting for 87.1 per cent of the annual market total of £274million.

While revenue from physical formats dipped below £300million in 2016, it remained the largest revenue stream for labels, declining by 1.9 per cent.

The BPI said its resilience was testament to the enduring popularity of albums on CD, where income fell by 9.1 per cent, and particularly vinyl, where revenue from LP sales rose by 66.5 per cent.

Vinyl LP accounts for 15 per cent of physical album turnover and 4.5 per cent of total label revenues.

Music DVD enjoyed its best year since 2013, boosted by the release of The Beatles' Eight Days A Week and the Oasis documentary Supersonic, which between them sold well over 350,000 copies.

Commenting on the figures, BPI chief executive Geoff Taylor said: "It's encouraging to see revenues rise significantly, as more and more consumers enjoy the benefits of subscribing to a premium streaming service or rediscover the joys of vinyl.

"Britain's world-leading music sector has the potential for sustained growth in the years ahead, but this exciting future can only be realised if government makes creative businesses a priority post-Brexit.

"What does this mean? It means making sure that UK artists can tour freely in EU markets and that UK businesses can access the best talent.

"It means taking firm action against illegal websites that deny artists a living, and it means making clear in UK law that huge online platforms must pay fair royalties for the music they use.

"And it means working with industry to boost exports by promoting strong IP protection in trade negotiations with third countries.

"UK record labels will continue to take huge risks backing emerging British talent and investing hundreds of millions of pounds annually to bring it to a global audience.

"With strong support from government, British music can continue to be a global success."

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Picture credit: pixabay

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