Source: Pexels

UK Music Industry Receives a Much-Needed Financial Boost from Online Streaming and Live Events

The music industry in the UK seems to be going through some of its prouder days. While it struggled with attracting consumers in a world where everything goes digital and beyond, the music business seems to have regained its vitality and strength. How did it come to reverse what seemed to be declining performance and reconnect with a nation-wide audience?

Online Streaming a Great Aid for Music Industry

We have one word for you: streaming. For years, record labels agonized over trying to keep their revenue from slipping away as CD-players gradually became a thing of the past and online entertainment replaced old-fashioned options. Now, it seems that they have turned to embrace new technologies like blockchain: the Musicoin platform uses blockchain technology, the same one that powers cryptocurrencies like Bitcoin, in order to provide online music streaming services that connect users with musicians without intermediaries.

Recently, their tech was used to power a new type of smart speakers called Volareo, which allows listeners to directly tip musicians just by clapping their hands. The possibilities of using blockchain seem endless, just as cryptocurrencies. With renewed interest in both crypto and fiat currencies via forex, UK traders have produced a marked boost in the country’s economy; forex and crypto like Bitcoin are traded in more than 15,000 global markets. It seems that the music industry has finally caught up with the spirit of the times and directed its efforts into the online streaming market.

Source: Pixabay

In 2017, revenue for the industry rose by 9.6%, yet profit from streaming services that operate on a subscription basis, like Spotify, grew by a whopping 41.9%. This seems a radically different picture from 2005, when 98% of the market’s revenue came from records or digital downloads. Also, according to a survey published in The Guardian in July 2017, live music festivals and concerts saw crowds rise by 12% over the previous 12 months, which translated to a contribution of £4 billion to the British economy.

Live Concerts and British Acts Bring in the Crowds

In fact, according to the same report, 30.9 million people attended various live music events, a significant growth from 27.7 million in a 2015 study. This is not just good news for the record labels and the artists but for the tourism industry as well. Approximately, one million people have flocked to Great Britain with the main purpose of attending a music show – a figure which demonstrated a 20% growth in 2016. Each of them spent on average £850, although smaller music venues did not get the lion’s share, and instead saw a decline in attendance. Venues that can accommodate up to 1,500 people have been driven out of business in recent years due to rising costs and bureaucracy, as 35% were forced to close shop in London.

Yet, the big names, usually the ones that the record labels rely on for survival, keep getting bigger. Highly successful British artists like Ed Sheeran and Adele have been in the spotlight for a while now, not just in the UK, but internationally – while veterans like Coldplay and the Rolling Stones keep producing one crowd-pleaser after another. Artists like these have plenty more to give to help boost the finances of the music industry in the right direction.

On the whole, if the industry keeps embracing new opportunities with an open mind instead of being stuck into the marketing ways of the past, there seems to be no reason to be anything less than optimistic about its future.

About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

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