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Music by Numbers 2020 Report

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Music by Numbers 2020 Report contents. introductions. Caroline Dinenage MP | Minister for Digital and Culture 4 Jamie Njoku-Goodwin | Chief Executive, UK Music 5 figures. 6 sectors. Music Creators 11 Live Music 14 Music Publishing 16 Recorded Music 19 Music Representatives 20 Music Retail 23 music tourism. 24 Number of Music Tourists 26 Music Tourist Spend 27 Music Tourism Jobs 28 next steps. 29 methodology. 33 acknowledgements. 35 Hayley Louisa Brown © Brown Louisa Hayley Mable | contents. introductions. Caroline Dinenage MP | Minister for Digital and Culture 4 Jamie Njoku-Goodwin | Chief Executive, UK Music 5 figures. 6 sectors. Music Creators 11 Live Music 14 Music Publishing 16 Recorded Music 19 Music Representatives 20 Music Retail 23 music tourism. 24 Number of Music Tourists 26 Music Tourist Spend 27 Music Tourism Jobs 28 next steps. 29 methodology. 33 acknowledgements. 35 introductions. The UK music industry is at the £1.57 billion Culture Recovery Fund 1 heart of our arts and cultural sector, to help the sector weather the which is the envy of the world. It is impact of coronavirus and protect a key national asset and something music venues, festivals, and our vital that should make us all proud. cultural assets. Music enriches all of our lives, but it also makes a huge contribution to Many organisations have been able our economy. As this year’s Music to access emergency grants and By Numbers report reveals, the loans as part of the biggest one-off industry generated £5.8 billion for investment in UK culture. Funding the UK economy in 2019 - up 11% was also made available to support on the previous year. jobs and help businesses stay afloat. CAROLINE DINENAGE MP Minister for Digital and Culture British stars helped drive exports The investment shows our up to £2.9 billion in 2019 - a 9% commitment to music and the arts. increase and a fantastic overseas It will also help nurture the talent calling card for Britain. Behind pipeline so that the stars of the every artist, band and orchestra is future can break through. Over the an army of talented professionals years, UK Music has established a who play their part in the industry’s reputation for producing reliable ecosystem. data that brings into sharp focus the economic importance of the Songwriters, producers, artist music industry. managers, publishers, recording studios, musicians, promoters, UK Music reports help everyone crew, record labels, collective involved in policy-making, the sector management organisations are all and Government better understand part of an industry that supports the industry’s ecosystem. almost 200,000 jobs. I am delighted to introduce However, we know what an this year’s Music By Numbers immensely tough year 2020 has report which underlines just how been for the music industry as important the UK music industry is a result of COVID-19 which has to our country. presented significant challenges for the sector. That is why the Government stepped in with an unprecedented 4 Welcome to our 2020 Music By paused. The cancellation of gigs and Numbers report, which is my first festivals laid bare how reliant local as UK Music Chief Executive and economies are on music venues comes in a turbulent year for our which bring trade to businesses industry. from taxi firms to take-away stands. We have produced these reports The music industry suffered a annually since 2013, analysing devastating blow this year. But I am data to paint a picture of how the very proud of how it has worked different sectors of our industry hard to help itself, setting up work together to deliver economic hardship funds for those hit by the growth and jobs. pandemic and demonstrated some JAMIE NJOKU-GOODWIN incredible creativity and resilience Chief Executive, UK Music Our music industry is a key national to survive. We are also extremely asset. It contributes £5.8 billion a grateful for the Government year to the economy, generates support packages, which have made £2.9 billion in exports, and supports a big difference. The breadth of this almost 200,000 jobs. Beyond the support was a welcome and much- economic impact, it creates vast needed demonstration of how social, educational and mental much our industry is rightly valued health benefits. It boosts Britain’s by Government. standing in the world, bringing a soft power that few other industries Music By Numbers shows can boast. how vibrant, fast-growing and commercially successful our Year-on-year growth had put industry was before the pandemic. our industry firmly on track for Our task now is to ensure it can be continued growth and to be one again. of the great British success stories of the coming decade. However, I am convinced we have the people, COVID-19 delivered a catastrophic the drive and determination to blow and the impact has been felt fire up our industry once more and by all parts of our industry. become a key part of our country’s post-COVID-19 economic and We’ve also seen how vital music is cultural revival. That is a shared to our wider society. The lockdowns endeavour we can all work towards. threw into sharp focus the health benefits of music-making as I hope you enjoy our report and I activities like singing in a choir, would like to thank everyone for playing in an orchestra or band were their support of UK Music. 5 2figures. MUSIC INDUSTRY CONTRIBUTED £5.8 BILLION TO THE UK ECONOMY £2.9 BILLION GENERATED IN EXPORT REVENUE 197,168 FULL-TIME JOBS SUSTAINED 6 In 2019, the UK music industry but also maintain its place as a concluded that up to 85% of Live contributed £5.8 billion to the global leader in an increasingly revenue will be lost, revenues UK economy, an 11% increase competitive post-COVID-19 world. have been close to zero since from £5.2 billion in 2018, marking March. Moreover, according to a new high following a decade The music industry is a UK Music survey 65% of music of sustained growth that has interconnected and this has creators’ income will be lost outperformed the UK economy*. produced a domino effect as this year, rising to over 80% for It generated £2.9 billion in COVID-19 and the restrictions those most dependent on live exports, an 9% increase from £2.7 connected to the pandemic performance and recording studio billion in 2018. Employment rose have taken hold. The absence work. For these performers, many by 3% to 197,168 in 2019 from of live music and touring have seen their income reduce to 190,935 in 2018. deprives performers (and their zero since March. representatives), venues and Live music was particularly strong, promoters of income. Songwriters Most music creators are self- but all sectors contributed and music publishers also lose live employed. The industry relies significantly to the music performance income. The closure very heavily on freelancers and industry’s growth in gross value of shops, bars and nightclubs the self-employed, many of whom added (GVA) in 2019. deprives performers, writers, have fallen through the cracks labels and publishers of public during 2020, not qualifying for The UK has successfully exported performance income. Record label the support that has been made music for decades and exports release schedules are impacted available. contributed very significantly in by an inability to move around to 2019. This success, however, is create and promote new material, The UK music industry is a not a given. Streaming platforms which is especially challenging commercially successful sector make access to the global music for new artists launching their that was growing before the market more accessible and careers. Recording studios carry a pandemic, and can grow again. therefore more competitive. heavy burden of costly overheads Music has always been a British combined with a devastating drop success story and a national While this report focuses in income, with many facing an asset, that delivers at home and primarily on the achievements uncertain future. It is not yet clear abroad. There is no reason why of the music industry in 2019, how long the impact of COVID-19 that cannot continue, but that we cannot ignore the turbulent will last. future depends on us saving the events of 2020. The music music ecosystem that we have sector right across the UK has Alongside gathering data on and supporting individual music been dealt a hammer blow by 2019, we have also monitored creators and freelancers especially COVID-19. In facing the many where possible the impact of during this critical period. challenges of COVID-19, the UK COVID-19 during 2020. We have industry must not only recover, * https://www.ons.gov.uk/economy/grossdomesticproductgdp/ 7 * † Table 1: Thematic Grouping The definitions in this report GVA EXPORTS Sectors Sub-Sectors were developed in 2013, but Music Creators musician have been updated periodically. £5.8 BILLION £2.9 BILLION composer songwriter The definitions remain the same lyricist as the 2019 report. Table 1 vocalist demonstrates the relationship producer between what UK Music has Music Creators engineer identified as Sectors (Thematic Live Music music festival organisers Groups) and Sub-Sectors Live Music music promotors (Elements of the Core) within the music agents music industry. The sub-sectors Music Publishing production services for live music that are used in this definition ticketing agents - proportion of their activities involved with live music are united by their relationship to concert venues and arenas - the proportion of their activities involved the commercial assets of the UK Recorded Music with live music music industry. We have identified Music Publishing publishing rights holders these commercial assets as shown Music Representatives publishing companies in Diagram 1.
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