UK recorded music business worth £1bn in 2013

The market value of the UK recorded music business was flat in 2013, according to new BPI stats, at around £1 billion.

Music streaming surpassed £100 million for the first time in the year, with new BPI/Official Charts Company stats showing that the overall market revenues were down just 0.5% year-on-year to £1.04bn.

However, unit sales data didn’t bring good news: album sales across both digital and physical formats showed a 6.4% decline to 94m, whilst single sales dropped by 3.4% to 182.2m.

Revenues generated by singles were down 1.6% to £167.8m, while the overall value of the albums market dropped 3.6% to £772.1m.

Sales of CD albums were down sharply by 12.8%, but it still claimed more than 60% of all albums sales. Vinyl album sales continued to shoot upwards, increasing 101% on 2012.

Despite these declines, the UK market was able to offset its losses with the explosive growth in streaming services, which claimed around 10% of the total market value.

According to the BPI, premium-account subscriptions to audio streaming services such as Spotify and Deezer generated £103m in 2013 – a 34% rise on 2012’s streaming haul of £77m. The figures does not include revenues from ad-funded streaming services including YouTube. Streaming unit numbers doubled year-on-year, from 3.7bn in 2012 to 7.4bn in 2013.

The overall value of downloaded digital music in 2013 grew, up 3.5% to £397.2m. Digital album unit sales were up 6.8% year-on-year, claiming 34.7% of the market. Physical music’s value declined 7.6% to £542.7m.

The biggest-selling album overall was Now That’s What I Call Music 86, with 1.1m copies shifted. One Direction’s Midnight Memories was the biggest-selling artist album of the year, with 685,000 sales in just six weeks. Arctic Monkeys were the most streamed artist of the year.

UK market value 2013 BPI

BPI Chief Executive Geoff Taylor said: “The success of digital music in 2013 surpassed all previous records – we celebrated the one billionth track download, counted four million-selling digital singles, and streamed more than 7 billion songs. As digital music moves into the streaming era, the prospects for future growth in the UK music market look strong.”

BPI Chairman, Tony Wadsworth CBE added: “The British public’s affinity for British music is alive and kicking! For an impressive ninth year in a row, a UK artist signed, developed and supported by a British record label has claimed the best-selling artist album on home turf. The hat-trick of chart achievements from One Direction, Bastille and Arctic Monkeys has certainly set a high benchmark for UK acts to follow in 2014, but we say watch this space.”

UK unit sales 2013 BPI

Music Business Worldwide

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