So, last week (or so) the NME reported on the ‘booming’ music industry. It seemed quite a positive start for 2025 but it did unfold with a little more cynicism.
The NME article (which you can read here) told us how new figures from the Digital Entertainment and Retail Association (ERA) showed ‘music sales in 2024 hit a 20-year high, with consumers spending a whopping £2.4 billion over the past year. Streaming services like Spotify and Apple Music dominated the scene, accounting for nearly 85% of the total spend, while vinyl records and CDs also saw steady growth. Vinyl sales alone were up by 10.5%, bringing in £196 million, while CD sales added £126.2 million.’ Sounds great eh?
But... beneath the surface of this 'banner year', as ERA’s Kim Bayley put it, lies a harsh and bleak reality for UK artists. Despite the impressive numbers, almost half of all working musicians in the UK still earn less than £14,000 a year, according to the Musicians’ Union. We see this first hand at Tonic where financial precarity is one of the most common causes of struggle. Factors such as the rising cost of living, post-Brexit, European tours being a logistical and financial nightmare, streaming being far less lucrative than physical sales, a decline in public arts funding and dwindling support for grassroots music all contribute to the struggle.
I have written about the grassroots crisis and the difficulties they face in a previous blog. Last year, 125 grassroots venues closed their doors, with many more at risk due to rising costs and new taxes. The Music Venue Trust (MVT) has warned of a 'complete collapse of touring', estimating that 350 more venues could shut down. That’s horrendous!
The article speculates how despite this worrying trend, the major record labels are raking in profits, while the artists themselves are seeing little benefit. Digital royalties from streams are far less lucrative than income from vinyl or CD sales, and many artists are left struggling to cover the basics like studio time, tour expenses, and even food.
Naomi Pohl, general secretary of the Musicians’ Union, summed it up: 'Professional musicians, artists, and songwriters are not enjoying the boom represented by these figures.'
Let’s hope things change! There has been a rising body of industry leaders and artists alike calling for reforms such as fairer digital royalty rates to increased government intervention. Some MPs are pushing for a ticket levy on arena gigs to support grassroots venues (see previous blogs). But with a deadline for concrete action looming in March, the clock is ticking for meaningful change.
As Featured Artists Coalition CEO David Martin put it, 'Ten years of consecutive growth and record-breaking sales suggest a thriving industry. However, many UK artists earn far below-average salaries. A fairer distribution of wealth isn’t just fair - it’s essential for the industry’s future.'
The numbers may look good, but until the money reaches the artists creating the music, the UK music industry’s success story will remain bittersweet. This country has been a pioneer of a vibrant music scene. I sometimes fear that this may be a thing of the past unless it’s ultra safe. In the meantime, if you are a musician and struggling and want to get heard, join a Tonic Rider Peer Support Group.
Adam Ficek hosts a monthly show 'Tonic Music' on Totally Wired Radio, where he talks to various guests about music and mental health. You can listen again to any of the previous show on the Tonic Music Mixcloud page.
