Image from UK Music
Music Industry’s Economic Contribution To The British Economy up by 11% before Pandemic
Since 2013, UK Music has published an annual report which reveals the economic contribution of the UK music businesses to the British economy. The new figures show that there was an impressive 11% increase in music’s contribution to the economy from 2018, totalling in a contribution of a staggering £5.8 billion (yes billion). Recorded music grew by 9% in 2019 with a total GVA of £613 million, up from £563 million in 2018. A quarter of the recorded music market is also made up of independent businesses (an increase of 1% has been seen each year for the past three years).
It is worth noting that the figures in the Music By Numbers 2020 report are for the 12 months up to December 31 2019. The report does not reflect the devastating impact of the covid-19 pandemic which affected the world just months later.
However, it is interesting to see that the U.K music industry was clearly in an area of good growth. It further installs the importance of the UK music industry as a whole is to the overall economy, yet it still feels somewhat left out in the cold during this current crisis. The figures presented are certainly positive and we should all rejoice in seeing the industry going through such stable growth throughout the years. It is evidence of just how important the music industry is not just to people but the countries overall economy.
Read the full report here:
The key facts in Music By Numbers 2020 include:
• The UK music industry contributed £5.8 billion to the UK economy in 2019 – up 11% from £5.2 billion in 2018.
• Employment in the industry hit an all-time high of 197,168 in 2019 – an increase of 3% from 190,935 in 2018.
• The total export revenue of the music industry was £2.9 billion in 2019 – up 9% from £2.7 billion in 2018.
• In addition to the industry’s direct economic contribution, music tourism alone contributed £4.7 billion in terms of spending to the UK economy in 2019 – up 6% from £4.5 billion in 2018.
Speaking on the report UK Music Chief Executive Jamie Njoku-Goodwin said:
“2019 was a fantastic year for the UK music industry, and we were firmly on track to be one of the great British success stories of the coming decade. “Music By Numbers 2020 shows just how successful our industry was before the catastrophic blow of Covid-19 knocked it down, and how important it is that we get it back on its feet.” He continues: “When the time comes to recover from this pandemic, our world-leading music industry can be a key part of our country’s post-Covid economic and cultural revival – but we need the right support to get us there.”
Minister for Digital and Culture Caroline Dinenage also commented on the report:
“The UK music industry is at the heart of our arts and cultural sector, which is the envy of the world. It is a key national asset and something that should make us all proud. Music enriches all of our lives, but it also makes a huge contribution to our economy.” She adds: “British stars helped drive exports up to £2.9 billion in 2019 – a 9% increase and a fantastic overseas calling card for Britain. Behind every artist, band and orchestra is an army of talented professionals who play their part in the industry’s ecosystem. However, we know what an immensely tough year 2020 has been for the music industry as a result of Covid-19 which has presented significant challenges for the sector. That is why the Government stepped in with an unprecedented £1.57 billion Culture Recovery Fund to help the sector weather the impact of coronavirus and protect music venues, festivals, and our vital cultural assets.”
The important thing now is ensuring that this industry, that is clearly profitable and more than feasible is supported during this time. There’s no need to retrain when your industry is stable and growing.
As UK Music Chief Executive Jamie Njoku-Goodwin words it:
“This report shows just how valuable our music industry is – and how important it is that we take action to protect it. The UK music industry was a vibrant, fast-growing and commercially successful sector before the pandemic hit, and with the right support it can be again.” Adding that, “I am convinced we have the people, the drive and determination to fire up our industry once more and become a key part of our country’s post-Covid-19 economic and cultural revival.”