UK Music Sales Soar in 2024 First Half
In the first half of 2024, non-subscription music sales in the UK experienced a substantial growth of 7.9%, surpassing revenues in the video and gaming sectors. This data comes from the latest report by the Entertainment Retailers Association (ERA).
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Physical Music Sales Buck the Trend
The overall value of non-streaming music sales in the UK, which includes vinyl, CDs, and downloads, reached an impressive £163.8 million. Within this total, vinyl sales accounted for £86.3 million, showing a remarkable year-on-year increase of 13.5%. On the other hand, CD sales brought in £57.9 million, marking a 3.2% growth. This solidifies the recent trend of physical music sales stabilizing and expanding.
Impact of Key Players
The first half of the year saw a boost in physical music sales, driven by events like Record Store Day and the influential artist Taylor Swift. Taylor Swift’s album ‘The Tortured Poets Department’ and the single ‘Fortnight’ emerged as the biggest selling releases in their categories so far this year.
ERA’s CEO Kim Bayley Shares Insights
Commenting on this positive trend, Kim Bayley, CEO of ERA, expressed, “This is a significant achievement for the music industry, primarily led by the impact of Taylor Swift and Record Store Day. Their influence on the vinyl sector has been evident since April, and it seems to have uplifted the entire market.”
Streaming Dominance and Future Projections
Although physical music sales are on the rise, subscription streaming continues to be the primary revenue generator for recorded music. Full revenue statistics for the streaming market in the first half of 2024 are forthcoming, with Spotify, Deezer, Universal Music, and Warner Music set to release their financial reports in July and August.
In 2023, streaming accounted for 84% of music retail revenues in the UK. If this trend continues, the music sector is projected to surpass £1 billion in retail revenues for the first half of 2024.
Comparative Growth Across Entertainment Sectors
While music sales saw a robust growth of 7.9%, non-subscription revenues in video formats, including DVD, Blu-ray, downloads, and digital rentals, increased by 5.4%. Conversely, the gaming sector experienced a decline of 29.4% in non-subscription revenues.
Although music’s growth outpaced other entertainment sectors, it’s essential to note that video and gaming still generate higher revenues overall. Non-subscription revenues in video and gaming amounted to £213.7 million and £348.6 million respectively, exceeding the £163.8 million in music.
Future Outlook and Industry Positivity
Bayley remains optimistic about the gaming sector’s outlook, despite a challenging first half due to a lack of major releases. The industry anticipates a stronger second half, traditionally marked by blockbuster game launches.
The continued growth in physical music sales is a positive development for the industry. ERA’s recent data highlights that non-subscription revenues are growing at a faster rate in music compared to video and gaming segments.
As the music industry progresses into the second half of 2024, the positive momentum from the first half sets a promising tone for the overall market.