Diversifying Income Streams Boost 2011 UK Record Label Revenues
Revenues from music synchronisation, “360 degree” artist deals, concerts, music-related TV production, broadcasting and public performance grew strongly in 2011 to £205.3m, now accounting for a fifth (20.5%) of record industry trade turnover, figures published by industry trade body BPI revealed today.
The market for music synchronisation – the use of recordings in films, TV programmes, adverts and games – grew substantially to £18m, an increase of 11.9% year-on-year. This was achieved despite a fall in games-related synchronisation deals, from £5.4m to £3.6m, as sales of games centred on music softened in 2011.
Artist-related revenues from multiple-rights “360 degree” deals, including concerts, merchandising, touring and sales of music direct from artist and label websites, remained strong during 2011. Almost £76m was generated from these broader partnerships with artists, an increase of 14% on the previous year.
Licensing income from television, radio and online broadcast in addition to public performance revenues, collected by PPL, combined with VPL revenues, increased to £83.2m.
Commenting on the annual figures, BPI Chief Executive Geoff Taylor said “British music companies have reinvented their businesses for the digital age, marketing and promoting music intelligently through every channel available. They have diversified their revenue base and this has established a solid platform for future growth as the transition to a majority digital business continues.
“British music is on a global high and the UK’s creative industries have enormous potential to generate new jobs and economic growth, if Government gets serious about tackling online theft of content.”
The new figures demonstrate that music companies have continued their successful strategy of diversifying revenue streams to respond to a rapidly evolving digital environment.
The industry has already broadened its core revenue base by licensing a wide range of innovative digital music services, with a variety of new business models. The UK has the world’s most advanced digital music market, with over 70 legal digital music services – more than any other country in the world. These new channels are also showing strong growth. Digital album sales grew by 26.6% to £26.6m in 2011 and premium subscription services were up 43% to £23m in the same period.
Source: BPI
