01 July 2021

Jonathan Tait provides an overview of the latest Music By Numbers Report. He considers the changing landscape of the music industry and how Covid will impact on the future of the music industry.

Like many sectors, the UK music industry has been severely affected by the COVID-19 pandemic. The reduction in physical sales, sync opportunities, signings and releases, in conjunction with the decimation of the live music sector (and their ancillary sectors) in particular, has hit the industry hard.

UK Music’s “Music By Numbers 2020” Report (click here) concludes that 85% of live revenue will have been lost in 2020 due to COVID-19. We have heard numerous reports of gigs and festivals being postponed or cancelled. More alarmingly, we have heard of countless venues which have closed their doors indefinitely, unable to recover from the impact of the losses sustained under COVID-19.

The Report also concludes that over 65% of creators’ income will be lost altogether, rising to 80% for creators who are dependent upon live performance and studio recordings for their livelihood. What makes this data doubly painful is that pre-COVID, the UK music industry was experiencing an extremely buoyant 2019, contributing £5.8 billion to the UK economy. The uncertainty in relation to EU touring as a result of Brexit has not helped matters.

During times of crisis, people often turn to music for solace and this time is no different. It was expected that as a result of the removal of the live sector and the lack of opportunities to purchase physical goods, digital music consumption would increase, but figures show that figures during 2020 were lower than in comparative months in 2019. All is not lost, however, as streaming services are experiencing a marked increase in use, vinyl sales are up, on-demand consumption has increased and publishing figures show a significant increase.

There is a lot of speculation as to how the industry has changed and what will be the lasting impact of COVID-19. One thing is for sure, the landscape is changing dramatically and as with most seismic shifts in cultural output and consumption, this shift will bring about innovation and creative flair. It is a given that artists are more aware than ever of the value of their creativity. Given the lack of income from live performance, it is therefore inevitable that artists will move en masse to more artist friendly streaming platforms. It is not the intention here to widen the debate on those platforms in the spotlight which offer poor returns on revenue, suffice to say that new platforms are emerging which offer more artist-friendly opportunities. As the reliance on streaming is set to rise given the lack of live-generated revenue, we predict that the platforms providing fairer returns will undoubtedly flourish.

Given that it is extremely likely that there will be less artist and fan interaction and disposable income, at least in the short term, artists and the industry alike will have to offer more to the consumer in terms of a tangible return for consumer investment. This may mean making music a more experiential art form, diversifying and opening up any live experience and investing in tech to allow for this….no mean feat.

What has been incredibly gratifying throughout this period, however, is how the industry has pulled together in solidarity. From #TimsTwitterListeningParties and Bandcamp Friday, right through to the Rod Jones helmed #LottaRoadies project, artists and industry have pulled together in order to support one another, and that can only be a good thing, right?

BTO’s niche team BTO BeCreative advises the Scottish music industry and artists on streaming agreements, licences, artist management contracts, venue contracts, production rights and royalties.

Competitive rates can be agreed to suit all budgets.

For more information, contact:

Paul Motion, Partner: prm@bto.co.uk / 0131 222 2932

www.btobecreative.com