The UK music business contributed a whopping £4.1bn to the British economy in 2014 – with the live music sector claiming almost a quarter of the spoils.
The news comes in UK Music’s third annual economic study Measuring Music 2015, and refers to the GVA (Gross Value Added) performance from all sectors of the business, including publishing, live and records.
In 2013, the GVA of the UK business was £3.8bn, £300m behind 2014’s tally.
In 2014’s numbers, live music revenues were up by 17% year-on-year to £924m, almost exactly 50% bigger than the contribution from recorded music, which stood at £615m.
Music publishers contributed £410m to the UK economy in 2014, but the biggest revenue generator was ‘musicians, composers songwriters and lyricists’, who racked up £1.9bn in total – three times the figure attributed to labels.
Interesting to note in the year-on-year comparison below that the revenues from ‘musicians, composers…’ and live music sectors both grew year-on-year, but money generated by music publishing and record labels shrunk.
(UK Music appears to blamed the strong Euro for these falls. Its report – likely via a constant currency lens – suggests that both Recorded Music and Music Publishing categories grew year-on-year.)
UK Music’s report also puts some focuses on the biggest sources of employment for the UK business.
It says that in 2014, 117,000 full time jobs were provided within the music industry. The vast majority were individuals, while the live music sector employed over 25,000 people.
There’s also a look at music exports, which contributed over half of the total GVA with £2.1bn in revenue.
The ‘Musicians, Composers…’ category contributed £926m of this figure.
Music publishing exports (£519m) actually beat record label exports (£332m).
The report explains: ‘Export income composes an unusually large proportion of revenue to UK Music Publishing, because of this what remains as total GVA is less than its total export revenue.’
UK Music Chief Executive, Jo Dipple said: “2014 proved to be another hugely successful year for British music. The sector outperformed the rest of the UK economy and grew by 5% year-on-year.
“Music contributed a staggering £4.1bn to the UK economy, and exports generated £2.1bn. The UK’s cultural footprint and soft power were driven by the global success of artists like Sam Smith (pictured), Ed Sheeran, Pink Floyd, Ellie Goulding, One Direction and Calvin Harris.
“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. It also helps us articulate just how culturally important the British music industry and the 117,000 people it employs are to our nation.
“UK Music will continue to work with Government for the best possible future for every part of our varied and stunningly diverse industry.”
UK Music Chairman, Andy Heath said: “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.”
You can download the full Measuring Music 2015 report through here.Music Business Worldwide