Figures released today show the music industry is moving further away from traditional methods of generating profit as they continue to battle the decline in sales of albums and singles.
The new results show that in 2009 British record labels raked in a record £193.5m in ‘secondary revenues’, which encompasses various other income streams such as gigs, merchandise and advertising rights. The British Phonographic Industry (BPI), has said the results represent a rise of 6.6% when compared to 2008.
Speaking of the Music Industry’s new ventures Geoff Taylor, chief executive of the BPI, said: “UK record companies have responded to tough market conditions by innovating in the digital world and developing new revenue streams from recorded music, beyond their traditional base of CD sales and the encouraging growth in digital a la carte, subscription and streaming services.
Music companies continue to face an enormous challenge from illegal downloading, but are responding positively by transforming themselves for the future, identifying new opportunities to generate returns from the massive investments they make – hundreds of millions of pounds per year – in UK talent.”
Despite the decline in sales, the UK’s live scene continues to grow, with huge stadium tours over the past twelve months from the likes of U2, Oasis and Muse helping to boost profits.