The BPI, the association of independent and major record labels, today reports that UK recorded music revenue1 rose by 12.8% in 2021 to reach £1.262 billion.
This marked the sector’s seventh consecutive year of revenue growth, led by streaming. However, when adjusted for inflation, revenue in 2021 was £368 million below the 2006 CPI-adjusted figure of £1.63 billion, while using RPI the 2006 figure would have been £1.795 billion – £534 million higher than the 2021 total.
Revenue from streaming again fuelled much of the rise, up 13.7% to £837.2 million, with physical formats on CD and vinyl growing at a faster rate, also contributing – up by 14.6% to £241 million. See Notes for more details. These figures coincided with an increase in the number of indie record shops, recently reported by the Entertainment Retailers Association (ERA), which grew went from 390 in 2020 to 407 in 2021.
Geoff Taylor, Chief Executive BPI, BRIT Awards & Mercury Prize, said: “The UK music market’s return to growth has been driven by streaming – especially streaming subscriptions, which grew by 13% last year and made up 88% of streaming revenues and 58% of total revenues. After a tough few years we are also pleased to see growth across the sector, including in physical formats, sync, performance rights and beyond. This growth yields important benefits for the broader music community, including greater remuneration to a wider base of artists and additional investment by labels in new talent. It is important to remember that even today we still have yet to fully recover from years of decline and that, in real terms, we remain a much smaller industry than 15 years ago. We urge the music community to join together to continue growing the market, for example by helping British music secure the largest possible share of streaming growth abroad. That will be an effective way to maximise the success of British music creators and the ecosystem that supports them.”
