British Music Biz Aided By Royalties From Advertising
July 21, 2009 at 4:39 AM (PT)
The overall size of the UK music industry has grown by 4.7% per cent to be worth £3.6 billion in 2008 as revenues collected from digital licensing deals such as SPOTIFY and advertising increase by 7%, according to PRS FOR MUSIC. UTALKMARKETING.COM reports "the body that collects royalty payments and distributes them to artists said that while the recorded music sector shrank by 6% cent last year, the value of the live music sector increased by 13%.
"Revenues have grown for a second consecutive year and accounted for almost a fifth of the domestic income enjoyed by record companies, while a quarter of the industry’s income was now derived from B2B revenues, such as licensing, advertising and sponsorship, which rose by 10% to £925 million during the year, despite a drop in spending by advertisers.
"WILL PAGE, chief economist at PRS, told THE TIMES that the figures provide an understanding of a value chain, which helps to counter much of the Armageddon-style hysteria that surrounds the state of the UK music industry. He said, 'The point is that value doesn’t just disappear -- rather, some will be lost, some displaced and some new revenues will enter the industry.'"