Trends

• What was the trend for spending in recorded music

  • increased by 4.8% to £1.4bn in 2024.
  • Physical music sale rose by 1.3% to £246.5m.
  • Digital download revenue dropped by 6.6% to £24.3m
  • Streaming revenue totalled £1.02bn , making up 68.1% of recorded music revenue.
• • UK recorded music consumption across sales and streams rose 9.7% last year to 200.5 million albums.
• Since 2014, annual streaming revenue has increased by more than 800% in total to become the main format for recorded music in the UK.
• In 2024, UK's music consumption reached a record 201.4 million album equivalents, with streaming accounting for approximately 68% of total recorded music revenue.
• Paid subscriptions

  • Amazon, Apple, Spotify and YouTube make up the vast majority of streaming revenue.
  • Brought in £875.5 million in 2024 and account for more than 86% of the £1.02 billion UK streaming market.
• Digital download revenue dropped by 6.6% to £24.3 million, the second year in a row of modest decline.
• Physical formats like vinyl and CDs saw a combined revenue increase of 1.3% in 2024, amounting to £246.5 million.
• Vinyl

  • Revenue from sales rose by 2.9% to £145.7 million
  • Revenue from vinyl grew more than 650% from £19.4 million in 2014
  • 6.7 million units were sold, an increase of 9.1%
  • In 2014, half of the year’s Top 10 sellers were catalogue (older) titles
  • Brand new releases play increasingly significant role in growth.
• CD

  • Revenue from sales of CDs fell by 0.5% in 2024 to £96.7 million
  • Over the last 3 yrs CD sales have stabilised to become a £90 million-plus annual market
  • 2024 - purchases totalled 10.5 million units
  • Like vinyl, the CD market is led by the popularity of new releases
  • Examples include new albums by Coldplay and Sabrina Carpenter
• Market share of streaming services

  • Spotify, Apple music & Amazon music dominate UK market with streaming accounting for 68% of total recorded music.
• Subscription growth

  • UK - 7.8% rise in streaming subscriptions in 2024, highlighting that there is growing number of consumers willing to pay for music access
  • Streaming's become significant revenue source for artists
• Importance of playlists

  • Platforms like Spotify use advanced algorithms to curate personalised playlists such as 'Discover Weekly'
  • These playlists increase user engagement and encourage new music discovery
  • They have shifted listeners from active searching to passive discovery, impacting how new music is consumed and popularised
• AI

  • Artificial intelligence is used to analyse user preferences, refining recommendations and influencing listening patterns.
  • For artists, reliance on algorithms creates a challenge for visibility, as breaking into popular playlists can be competitive and algorithm-dependent.
• Influence of social media

  • TikTok emerged as an important platform for music discovery, with viral trends leading to mainstream success for some songs and artists.
  • In 2024, 10 of the 11 UK Official Chart number ones were tied to major TikTok trends.
  • The platform has led to the resurgence of older songs
  • In 2024, 19 out of the top 50 tracks on UK TikTok posts were more than five years old.
  • Virality on TikTok often leads to increased streams on music platforms, leading to additional revenue and exposure.
  • Tik Tok users are 68% more likely to use a paid-for music streaming subscription than the general population.
  • Musicians are increasingly using TikTok for promotion to engage directly with fans and use the platform's algorithm to reach broader audiences.
• Vinyl revival

  • Vinyl sales in the UK have experienced a revival in recent years, with over 6.7 million units sold in 2024, marking the 17th consecutive year of growth.
  • Many listeners appreciate the physicality of vinyl records, including the larger album artwork and the act of playing a record
  • Vinyl enthusiasts often argue that records provide a warmer, more authentic sound compared to digital recordings
• Vinyl Revival

  • The vintage nature of vinyl records appeals to both older generations reminiscing and younger listeners drawn to retro trends.
  • Purchasing vinyl records is seen by fans as a direct way to support their favourite artists, especially as streaming royalties are usually small.
• Vinyl Revival

  • Record Store Day, established in 2007, has played a key role in promoting vinyl , encouraging exclusive releases and driving traffic to independent record stores.
  • Vinyl releases often include exclusive content such as bonus tracks, special artwork and coloured discs, enhancing their appeal.
  • The return of vinyl records to the UK's inflation basket in 2024 reflects their renewed significance in consumer spending habits.