The UK music industry contributed £6.7 billion to the economy in 2022 but small venue owners continue to face challenges
UK Music has released its annual report This Is Music 2023, highlighting the immense contribution that the music industry made to the UK economy in 2022. As the industry recovered from the effects of the Covid pandemic, the return of live shows and international touring helped to boost export figures.
Despite these successes, though, significant challenges remain, particularly for small venue owners.
Read on to learn more about the report’s findings and how you can protect your venue from the risks you face.
The UK music industry contributed £6.7 billion to the economy in 2022
The report shared a few headline figures from 2022 that demonstrate the significance of UK music on the global stage:
- The music industry contributed £6.7 billion in gross value added to the UK economy.
- UK music exports generated £4 billion.
- In total, the industry employed 210,000 people.
While a direct comparison to previous reports isn’t possible due to an update in the methodology for data analysis, the report does share that 2022 outperformed 2019 – the last full year prior to the pandemic – to “produce its best year ever”.
In the foreword to the report, Lucy Frazer MP, Department for Culture, Media and Sport, and Lord Offord of Garvel, Minister for Exports, Department for Business and Trade reflected on how UK artists are “dominating the new digital age of music streaming, and exporting our music to all corners of the globe”.
Moreover, they acknowledged that “every big concert and every sell-out gig drives a local economy and supports local jobs”.
Significant challenges remain across the UK music industry
Despite the impressive figures and growth of the UK music industry, the report also acknowledges the significant challenges that are yet to be overcome:
- Recording studios have suffered from a loss of demand during the pandemic lockdowns as well as the soaring cost of business rates.
- Small venues are at risk because touring musicians are gravitating more towards bigger cities where demand is more reliable. This, combined with soaring costs for energy and the cost of living crisis, has put many at risk of closure.
- Cost pressures are making it more difficult for musicians to tour the globe, limiting the opportunity for music exports. Global competitors including Australia, South Korea, and Canada are all investing more heavily in music export strategies, increasing the risk that the UK could be left behind.
- The level of growth celebrated in the report has not been experienced by everyone in the sector, and there are concerns that it may not be sustainable.
While government grants including the Creative Industries Sector Vision and Music Export Growth Scheme are set to increase, the report highlights the importance of continued support in ensuring the UK music industry continues to lead the way.
Bespoke insurance for music venue owners could help protect your business
The past few years have been especially tough for music venue owners. While This Is Music has shared positive news about the return of live music events in 2022 and the potential for future growth, it’s important to protect your business from the risks you could still face.
For example, if your business were to be affected by damage such as fire or flooding, you may need to close while you carry out the repairs. This could lead to a significant loss of income if performances can’t go ahead, as well as the financial impact of repairing the damage.
With venue insurance, you can receive a payout if you were to find yourself in this position, so that you can mitigate the impact on your bottom line and reopen sooner.
Here at Eggar Forrester, we’re experts in helping creative sector businesses to protect themselves from risk so that they can get on with the work that matters most to them. We’ll offer you tailored insurance policies that create valuable peace of mind because you know you have the right level of protection.
Email creative@eggarforrester.com or use our contact form to request a callback from our team.
