LONDON (CelebrityAccess) — The British Phonographic Industry has published the preliminary numbers from its annual report which shows 3.1% growth for recorded music in 2018.
The latest figures also show the transition to on-demand streaming is the prime mover in the sector, and now accounts for nearly £500m annually, representing approximately 60% of income for the sector.
In total, the recorded music industry in the UK generated revenue of £865.5 million in 2018 and now stand at their highest level since 2009, though they are still down on the £1.2 billion post-millennium peak year of 2001.
The revenue increase follows a 5.7 percent rise in overall music consumption across all formats, which the BPI reported earlier this year, and broadly translates into a retail value of £1.34 billion according to ERA.
Overall, income generated by physical formats dropped by 22.5 percent, with sales of physical hampered by turmoil with High Street retailers such as HMV.
Revenue of £176.8 million from CD sales maintained its long-term trend, down by over a quarter in 2018, but it still remains important to the industry, delivering just over a fifth (20.4%) of its income.
Not everything was bleak for physical product, however, and income from vinyl sales continues to grow, topping £57 million in 2018, up by 3.7 percent on the year, and double the 2015 total of £25.1 million. In all, vinyl sales now account for 6.6% of industry income, the BPI said.
Geoff Taylor, Chief Executive BPI & BRIT Awards, said: “The recorded music industry in the UK is showing consistent growth, driven by investment in new talent, innovative global marketing, and offering music fans outstanding choice, convenience and value.
“The outlook for the future remains positive, but there is still a long way to go to recapture lost ground. Long-term growth depends on robust Government action to tackle the Value Gap, promote investment, ensure online platforms take responsible action to reduce infringement, and secure the future talent pipeline by giving state school pupils the opportunity to discover and develop their talent.”