The BPI has reported that UK recorded music revenue – including revenues from sync and public performance – rose by 4.7% year-on-year to reach £1.32 billion for 2022.
The figure represents the eight consecutive year of growth, and the highest nominal annual revenue on record. However, when adjusted for inflation, the amount falls hundreds of millions of pounds reported in 2006 , the first year which includes sync and public performance.
A number of factors contributed to the continued growth in 2022. Streaming revenues rose 6.3% year-on-year to £885 million and now account for 67.2% of industry revenue, up from 66.2% in 2021. The rate of streaming growth and record label investment in A&R and marketing is enabling a great many more artists to succeed through music. Meanwhile, overall revenue from the consumption of music on physical formats fell 10.5% over the 12 months of 2022, but rising revenue of £119.5 million from vinyl sales helped offset a 23.7% drop in CD revenue to £89.5 million. Vinyl now accounts for more than half of the revenue derived from physical sales.
Sophie Jones, BPI Chief Strategy Officer and Interim CEO, says, ‘The hard work and creativity of UK artists and labels meant that 2022 was another great year for British music, but we must guard against any complacency in the face of growing challenges and keep promoting and protecting the value of music. That’s why labels continue to innovate and invest in new talent and areas to connect more artists and fans while driving additional revenues. The UK environment has always enabled recorded music to thrive, something we must safeguard, but now we need the music community to unite and create the impetus for further growth so that we can build on an already strong foundation to futureproof the success of British music in an increasingly competitive global music market.’
