The UK recorded music enjoyed a “decade of growth” as 2024 marked a milestone year for revenues.

In 2024, the UK recorded music industry celebrated a significant milestone: streaming revenues exceeded £1 billion for the first time, contributing to total wholesale revenues of £1.49 billion, according to figures provided by the BPI. This achievement marks ten consecutive years of growth, with the industry experiencing over 80% expansion during this period.

Streaming services such as Spotify, Apple Music, and Amazon Music have become the dominant force in music consumption, accounting for 68.1% of the industry’s revenue. In 2024, streaming revenues grew by 5.7% to £1.02 billion. This growth, however, represents a slight slowdown compared to the 8.4% increase observed in 2023, indicating a maturing market.

Jo Twist, CEO of the BPI, highlighted the importance of continued support for the UK’s music sector, stating, “After a decade of growth, it is all too easy to take for granted the success of UK recorded music and the vital role record businesses play in this.” She emphasised the need for a supportive policy environment to maintain the UK’s competitive edge in the global music scene.

Despite the overall growth, UK artists faced challenges in dominating streaming charts. In 2024, non-UK artists led the top streaming tracks, with Noah Kahan’s ‘Stick Season’ amassing 233.1 million streams. Other international hits included Benson Boone’s ‘Beautiful Things’ (219.3 million streams), Sabrina Carpenter’s ‘Espresso’ (202.8 million), and Teddy Swims’ ‘Lose Control’ (201.6 million). However, UK artists like Myles Smith, Cassö, RAYE, D-Block Europe, and Artemas also made notable contributions, each achieving over 100 million streams for their tracks.

Physical music formats continued to show resilience in 2024. Vinyl continues to grow, with sales experiencing a modest increase of 2.9%, reaching £145.7 million – a remarkable 650% growth since 2014. Notably, eight of the top ten vinyl albums were contemporary releases, with Taylor Swift’s ‘The Tortured Poets Department’ leading the chart. CD revenues stabilised, experiencing a slight decline of 0.5% to £96.7 million, indicating a sustainable market for the format.

The industry’s revenue streams extended beyond consumer sales. Synchronisation income – licensing music for use in films, television, games, and advertising – reached a new high, rising 11.3% to £43.9 million. Public performance and broadcasting revenue also performed strongly, increasing by 5.6% to a record £161.7 million.

While the nominal figures indicate growth, adjusting for inflation presents a slightly less sensational picture. The £1.49 billion revenue in 2024 falls short by £460 million when compared to inflation-adjusted figures from 2006, reminding us that the industry has yet to fully regain its pre-digital economic stature.

As the industry looks ahead, challenges such as the rise of artificial intelligence (AI) loom on the horizon. Jo Twist cautioned that while AI offers “exciting potential”, it’s crucial to safeguard “the UK’s gold-standard copyright framework” against the interests of global tech giants. This sentiment reflects ongoing concerns about maintaining control over the industry’s resurging revenue streams in the face of technological advancements.

While the UK recorded music industry has marked a decade of continuous growth, the figures also highlight ongoing challenges. When adjusted for inflation, total revenue still falls short of pre-digital levels, raising questions about the long-term sustainability of the current market. Additionally, while streaming remains the dominant revenue source, its growth is slowing, and the increasing influence of AI presents new uncertainties for rights holders.

Despite these factors, record labels continue to invest heavily in artist development, with over £2 billion spent on A&R, marketing, and promotion between 2018 and 2023. As the industry adapts to technological and economic shifts, maintaining a strong copyright framework and a supportive policy environment will be critical to ensuring the UK’s position as a global leader in recorded music.