1 all around around the world all ALL British Music for Global Opportunity The AROUND THE WORLD CONTENTS Foreword by Geoff Taylor 4 Future Trade Agreements: What the British Music Industry Needs The global opportunity for British music 6 Tariffs and Free Movement of Services and Goods 32 Ease of Movement for Musicians and Crews 33 Protection of Intellectual Property 34 How the BPI Supports Exports Enforcement of Copyright Infringement 34 Why Copyright Matters 35 Music Export Growth Scheme 12 BPI Trade Missions 17 British Music Exports: A Worldwide Summary The global music landscape Europe 40 British Music & Global Growth 20 North America 46 Increasing Global Competition 22 Asia 48 British Music Exports 23 South/Central America 52 Record Companies Fuel this Global Success 24 Australasia 54 The Story of Breaking an Artist Globally 28 the future outlook for british music 56 4 5 all around around the world all around the world all The Global Opportunity for British Music for Global Opportunity The BRITISH MUSIC IS GLOBAL, British Music for Global Opportunity The AND SO IS ITS FUTURE FOREWORD BY GEOFF TAYLOR From the British ‘invasion’ of the US in the Sixties to the The global strength of North American music is more recent phenomenal international success of Adele, enhanced by its large population size. With younger Lewis Capaldi and Ed Sheeran, the UK has an almost music fans using streaming platforms as their unrivalled heritage in producing truly global recording THE GLOBAL TOP-SELLING ARTIST principal means of music discovery, the importance stars. We are the world’s leading exporter of music after of algorithmically-programmed playlists on streaming the US – and one of the few net exporters of music in ALBUM HAS COME FROM A BRITISH platforms is growing. That gives a competitive advantage the world. ACT IN NINE OF THE LAST FIFTEEN to music from countries or shared cultures with a large population. While the UK is seeing revenue growth from The UK accounts for just 2.2 per cent of global GDP, but YEARS (2005-2019) exports, our market share is declining as we compete its share is more than four times higher when it comes more directly on streaming platforms. to sales and streams of music – underlining how much by industry revenue. Spotify has recently launched in we punch above our weight as an exporter of music. One India, while in 2019 South Korea and Brazil were the sixth For these reasons we must nurture a climate that Something in the DNA of Britain makes us a in ten tracks streamed around the world is by a British and tenth respectively in the league of world markets. encourages investment and which boosts the UK’s global leader in creative innovation. Every artist, while the top-selling global artist album has come The next decade will see dramatic growth in Latin competitive edge. The investment labels make to country, region, and language in the world has from a British act in nine of the last fifteen years. America and Asia in particular. There is potential also for develop artists with global potential need to be matched. its own musical tradition, and yet British music markets to develop further in Africa and the Middle East. A refreshed partnership with government and targeted is amongst the most shared and loved globally. The British music industry has always been an outward- policies to achieve these goals is needed. British soft power has many aspects, but music looking business. Wherever you are on the planet, If the UK can leverage its strong music heritage to claim is a critical part of our international standing. whatever the language, chances are that music fans a healthy share of these new markets, this will deliver a The destructive effects of the Covid-19 pandemic on the there can sing or hum along to their favourite British substantial boost to the British music industry and the UK Economy, which have been so particularly felt by song. It’s an essential facet of how Britain projects itself UK as the returns are reinvested back into UK talent. our live music sector, and the vital need for the UK to to the world, but, just as fundamentally, it is also a great The value of UK recorded music exports has more than forge new international trading relationships post Brexit, British export bringing economic, cultural and social doubled since 2010 to around £500m in 2019. With the means there has never been a more important time for benefits to the UK and its people. right Government backing, the record industry has the the UK Government to harness the potential of its most WITH THE RIGHT SUPPORT, potential to grow its export earnings to more than £1bn successful businesses and support their urgent quest for THE EXPORT VALUE OF UK Streaming has changed the way that music is made and by 2030. increased exports. distributed. The online world has turbocharged consumer RECORDED MUSIC CAN DOUBLE choice. A simple monthly subscription now gives fans Despite the talent of UK artists and high levels of As the UK forges its future as an independent trading TO £1BN BY 2030. immediate and seamless access to almost the entire investment and marketing expertise offered by UK nation, the music industry is one of the UK’s strongest history of recorded music. Fans can now listen to over labels, realising this opportunity will require a focus assets. The moment is right to work together to seize 60 million songs and albums and counting. Spotify alone on new markets and appropriate support from the UK the global opportunity for British music. reportedly adds more than 40,000 tracks a day to its Government. The global music streaming environment is platform. becoming much more competitive. Geoff Taylor Chief Executive BPI, BRIT Awards & Mercury Prize The convenience and value offered by streaming The rise in demand in overseas markets for homegrown is opening up markets around the world that have content, particularly in genres such as hip hop and rap, previously generated little revenue, and in many is making it more difficult for UK artists to penetrate, cases were lost to CD and download piracy. China has especially in non-English speaking countries. developed rapidly into one of the top 10 music markets 6 7 all around around the world all around the world all The Global Opportunity for British Music for Global Opportunity The THE GLOBAL British Music for Global Opportunity The OPPORTUNITY FOR BRITISH MUSIC 8 9 all around around the world all around the world all The Global Opportunity for British Music for Global Opportunity The THE GLOBAL OPPORTUNITY British Music for Global Opportunity The FOR BRITISH MUSIC 01 For more than 60 years, Britain’s music has Such growth would enable even greater investment into The government should promoted the UK as a country of creativity, UK talent and create more jobs and opportunities for enhance its efforts to support UK cultural innovation and freedom. At the same young people. But increasing global competition means music exports by extending the successful time, a substantial music industry has grown, that this future can be realised only if industry, rights Music Export Growth Scheme and also by making a significant contribution to our holders and government work closely together on a joint investing in international showcases and 02 economy and balance of payments. strategy to maximise the international success of British events that help to promote music long term. British artists to Britain stands to achieve Pre-pandemic, the UK music business was generating the world. significant success in a globalised music £5.8 billion in gross value added, sustaining 200,000 Later chapters in this report examine the potential for market by investing more than its competitors jobs and delivering £2.9 billion in export revenues. growth of British music by region and by market. It in developing and recording fresh new talent and Within this, the recorded music sector is a particular highlights countries where British is already making an promoting it to the world. The government should introduce highlight, having recovered from years of piracy-fuelled impact, explaining how artists such as Dua Lipa work a music production tax credit to encourage new investment decline to show consistent year on year growth since with labels to maximise overseas success. Revenues are into new recordings in the UK. 2014. Domestic and export trade revenues exceeded £1.5 increasing particularly fast in China and India, though billion per year in 2019. still held back by market barriers; there is exceptional Artists and their crews need to be able to tour and promote growth from Indonesia, Brazil and Central Europe; and globally as easily as possible; and the UK needs to be The more successful the recorded music sector is, the while Africa does not yet figure in the statistics, it has accessible for global talent looking to record and more it can invest into nurturing exciting and diverse great potential and is will be a thriving new market for perform in the UK. Immigration routes for new British talent. UK artists with the right support. creative talent, including in music, 03 need to be made as smooth And while the prospects for further domestic growth A joint strategy for music exports means Government and low cost as possible. look strong, the greatest opportunity for British music and industry working together to encourage artists to The UK copyright regime needs to lies abroad. This report highlights the growing adoption base themselves and record here in the UK; helping be the strongest and best enforced in the of on-demand streaming services such as Spotify and emerging artists support the high financial hurdles world.