'Music is back' as sales hit a 20-year high

The music industry is experiencing a remarkable resurgence, as new data reveals that music sales in the UK have reached a 20-year high. In 2024, fans spent an astonishing £2. 4 billion on recorded music, surpassing the previous record of £2. 2 billion set in 2001, during the peak of CD sales. This surge in spending can be attributed to the popularity of major artists such as Billie Eilish, Taylor Swift, and Coldplay, whose new releases have captivated audiences. Taylor Swift's album, The Tortured Poets Department, emerged as the biggest-selling album of the year, with an impressive 783,820 copies sold. Meanwhile, Noah Kahan's single, Stick Season, achieved remarkable success, generating sales equivalent to 1. 99 million. The Digital Entertainment and Retail Association (ERA) provided these figures, highlighting that nearly 85% of the total revenue came from subscriptions to streaming services like Spotify, Amazon Music, and Apple Music. This trend underscores the growing preference for streaming music over traditional formats. Additionally, vinyl records have made a significant comeback, with sales increasing by 10. 5% and 6. 7 million records sold last year, generating £196 million in revenue. Although CD sales remained steady at £126. 2 million, they still outpaced vinyl in terms of units sold, with 10. 5 million albums purchased. The music industry has faced numerous challenges in recent years, particularly due to the rise of digital piracy and illegal streaming, which have significantly impacted profits. In 2014, the revenue from recorded music in the UK plummeted to £1. 03 billion. However, the introduction of streaming services and the inclusion of streams in official charts have played a crucial role in the industry's recovery. Subscription revenues skyrocketed from £175 million to £2 billion over the past decade. Kim Bayley, the head of ERA, declared 2024 a 'banner year' for music, noting that sales have more than doubled since the low point of 2013. She confidently stated, 'We can now say definitively - music is back. ' Despite this positive outlook, the music industry still lags behind the 2001 figures when adjusted for inflation. In real terms, the industry generated the equivalent of £4 billion in 2001, when Dido's album was the year's top seller, with 1. 9 million copies sold. Furthermore, concerns persist regarding how artists are compensated in the streaming economy. According to the Musicians Union, nearly half of working musicians in the UK earn less than £14,000 annually. Naomi Pohl, the union's general secretary, expressed concern that professional musicians, artists, and songwriters are not reaping the benefits of the industry's growth. They face various challenges, including the high cost of living, difficulties in touring the EU post-Brexit, and a lack of fair compensation from streaming revenues. In addition to the music industry, the video entertainment sector is also thriving. ERA reported that video was the most popular form of home entertainment, with consumers spending over £5 billion on streaming services, movie rentals, and DVDs. The biggest-selling title of the year was the comic book movie Deadpool & Wolverine, which sold 561,917 copies, with over 80% of those being digital. However, the video game industry saw a decline in revenue, dropping from £4. 8 billion in 2023 to £4. 6 billion last year. This decline can be attributed to several high-profile game failures, including titles like Concord, Suicide Squad, and Skull & Bones. Interestingly, the biggest-selling game of the year was EA Sports FC 25, which sold 2. 9 million copies, with 80% of those being digital. Despite this success, only four of the top 10 games were new releases, and two of those were updates to existing franchises. The popularity of Nintendo's Switch was evident, as half of the top 10 games were exclusive to the console. Overall, while the music industry is enjoying a resurgence, the video game sector is facing its own set of challenges.