Live music’s economic contribution hits a new record of £6.1 billion in the UK

New data has found that the UK’s live music sector exceeded £6 billion for the first time in 2023.

Industry body LIVE’s annual UK Live Music report has shown that spending on both the live music sector and its associated businesses rose by 17% from 2022 to 2023, as reported by The Guardian.

The reason for this growth stems from the world tours of big artists such as Beyoncé and Coldplay, which accounted for almost three-quarters (73.5%) of the total £6.1 billion economic impact.

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London was the main contributor to this figure as the capital funded for almost 31% of the total £6.1 billin. This was followed by Manchester at 7.4% and Glasgow at 5.5% of the total sum.

Figures from the report also estimated that the live music industry supported jobs for almost 230,000 people last year, which marks an increase of 9.4% since 2019.

Emma Bownes, vice-president of venue programming at AEG Europe - the owner of venues such as London's O2 - told The Guardian that 2023 was AEG’s biggest ever for ticket sales and shows.

"It was our busiest year," she said. "There is an appetite for shared experiences in general, people haven’t been able to go to gigs to see their favourite acts, they’ve missed that, and now they are coming out in their droves."

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Despite this record, 2023 also saw 125 grassroots music venues stop showcasing live music, with just over half of these shutting their doors for good. These figures came from the Music Venues Trust (MVT) annual report in January 2024, which surveyed 960 grassroots music venues, finding they faced their "most challenging year".

These venues attributed much of their financial difficulty to issues including soaring energy bills, business rates, supply costs, rent, reduced footfall and increased operational costs.

36 festivals also closed down entirely in 2023, a number which has increased this year.

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LIVE’s CEO Jon Collins said: “Last year delivered significant growth for many sections of the live music ecosystem. We had some of the biggest names in music sell out tours and festivals across the UK, but we also saw pressure build up across our industry, leading to grassroots music venues and festivals left with no choice but to close down in the face of rising costs.

“We welcome the commitments made by the Government to put the creative industries at the centre of the UK’s economic growth plan. Reintroducing a lower rate of VAT on tickets would bring the UK into line with international competitors and would be pivotal in unlocking the economic potential of our industry. With a lower rate of VAT on tickets, we could see the sector grow further, supporting more jobs, generating more investment, and putting on more gigs, festivals and tours for people to enjoy.”

Michael Kill, CEO of the Night Time Industries Association says: "Surpassing £6bn in revenue for the first time is a significant achievement for the live music sector, demonstrating the immense economic impact and continued popularity of major concert performances like Taylor Swift's tour and the upcoming Oasis reunion."

"However, this success starkly contrasts with the severe challenges facing the independent events sector. Rising operational costs have led to the cancellation of 60 festivals this year alone, highlighting the precarious situation smaller festivals and events are in," Kill continues.

"While it's encouraging to see large-scale concerts thriving, we must address the widening gap to ensure the entire live music ecosystem remains vibrant and diverse. The loss of independent festivals and venues is a critical issue that threatens the cultural fabric of our industry, and we must take action to support and sustain these vital contributors to our nightlife economy."

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Recently, Oasis fans have made official complaints about the use of "dynamic pricing" for the band's high-demand reunion tour.

The system saw tickets on Ticketmaster jump in price from £148 to £355 within hours of their release, leaving fans out of pocket and forcing others to give up on their chances to attend the tour.

Since then, newly appointed Culture Secretary Lisa Nandy has called for an "urgent review" of dynamic pricing amid the backlash over ticket prices for the reunion tour.

Labour had previously promised to introduce “new consumer protections” on ticket resales in its manifesto earlier this year. The consultation was planned to start this Autumn.

Becky Buckle is Mixmag's Multimedia Editor, follow her on Twitter