Music Industry Worth £3.5bn To British Economy
The music industry is worth an annual £3.5bn to the British economy - much more than previously thought, a new report has revealed.
Figures from UK Music, the trade body for the recorded and live music industry, show how much profit the sector makes and how much its 100,000 full-time workers are paid - a combined amount known as gross value added (GVA).
They also reveal music businesses generate £1.4bn every year from exports, while British chart-toppers including Emeli Sande, Adele and Ed Sheeran, whose albums dominated the 2012 sales chart, boost the UK's international brand and reputation by an estimated £72m.
Until now, it has been difficult to measure exactly how much the music industry is worth.
Figures from the vast majority (86%) of record labels and music publishing companies are stored using inaccurate codes, while smaller companies and freelance workers earning less than the £79,000 VAT threshold do not feature in statistics at all.
UK Music, which described existing estimates as "flawed", pored through pages of data from thousands of businesses to calculate the GVA figure.
It found musicians, composers, songwriters and lyricists contribute the most (£1.6bn) to the economy and also employ seven out of every 10 people who work in the sector.
Live music contributes £662m, followed by recorded music (£634m), music publishing (£402m), music representatives (£151m) and music producers and recording studios (£80m).
Jo Dipple, chief executive of UK Music, said the results prove the industry is a "substantial contributor to the economy".
"Our music might be fun, but it's also a formidable asset to the UK," she said.
"The Government has said it wants to support the creative industries but until now it's not had the precise data to hand. It does now.
"A realistic picture of the how the industry is made up will lead to a better understanding of what investment and regulatory environment is needed to help our industry thrive.
"It's a great UK success story, but now it can be even better understood and developed."
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