The UK’s live music industry has reached a historic milestone, with its economic contribution surpassing £6 billion for the first time in 2023, according to the latest annual report from industry body LIVE.
The report reveals a 17% increase in spending on live music and related businesses from 2022 to 2023, driven largely by the global tours of major artists such as Beyoncé and Coldplay, which accounted for nearly 73.5% of the £6.1 billion impact.
London emerged as the largest contributor to this figure, accounting for almost 31% of the total revenue, followed by Manchester with 7.4% and Glasgow at 5.5%.
In addition to the impressive economic figures, the live music industry supported approximately 230,000 jobs last year, marking a 9.4% increase since 2019. Emma Bownes, Vice-President of Venue Programming at AEG Europe, which owns prominent venues including London’s O2, described 2023 as a record year for ticket sales and shows. “There is an appetite for shared experiences,” Bownes noted. “People missed live gigs and are now coming out in large numbers.”
Despite this success, the industry faced significant challenges. According to the Music Venues Trust (MVT) report from January 2024, 125 grassroots music venues ceased operations in 2023, with over half closing permanently. The report attributed these closures to escalating energy bills, rising business rates, supply costs, and rent, alongside reduced footfall and increased operational expenses.
Additionally, 36 festivals were shut down in 2023, and this number has continued to rise this year. Jon Collins, CEO of LIVE, highlighted the paradox of the industry’s growth alongside the struggles of grassroots venues. “While we saw record-breaking tours and festivals, the rising costs are putting immense pressure on smaller venues and festivals,” Collins said. He urged for a lower VAT rate on tickets, which he believes would help unlock further growth and support the sector.
Michael Kill, CEO of the Night Time Industries Association, emphasized the dual nature of the industry’s current state. “Surpassing £6 billion in revenue is a remarkable achievement, underscoring the significant economic impact of major concerts,” Kill stated. “However, this success contrasts sharply with the severe challenges faced by the independent events sector. The cancellation of 60 festivals this year alone highlights the precarious situation of smaller festivals and events.”
The industry’s challenges were further highlighted by the backlash over “dynamic pricing” for high-demand events, such as the Oasis reunion tour. Fans reported price increases from £148 to £355 within hours of ticket release, prompting Culture Secretary Lisa Nandy to call for an “urgent review” of the pricing system. Labour’s manifesto earlier this year had promised new consumer protections for ticket resales, with consultations set to begin this autumn.
The record-breaking economic impact of the live music sector demonstrates its significant role in the UK’s cultural and economic landscape, while also highlighting the need for continued support for smaller venues and festivals to ensure a diverse and vibrant live music ecosystem.
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