London, 14 January 2024 –
The UK’s entertainment industry has marked its eleventh consecutive year of growth, reaching an all-time high of £11.9 billion in 2023, as reported by the digital entertainment and retail association ERA. This growth, representing a 7% increase from the previous year, reflects the resilience and adaptability of the UK’s music market driven by streaming despite global uncertainties.
Streaming Dominates, Driving Music to 2002 Peaks
With 38.8% increase since 2019, the driving force behind this growth is the unstoppable rise of streaming and digital services platforms such as Spotify and Apple Music, contributing to a remarkable 91.7% of total music revenue. Vinyl LP sales also saw an 18% boost, showcasing a surprising revival of physical formats.
ERA Chairman Ben Drury emphasized the profound impact of digital services, stating, “The overwhelming majority of the money raised by digital services and retailers goes direct to the content owners, and their success is directly benefiting creators.”
Video Surpasses Games for the First Time Since 2012
For the first time since 2012, video has exceeded games in revenue, marking a significant shift in the industry landscape. Video sales surged by 10%, reaching £4,915 million, fueled by subscription services like Netflix and Amazon Prime Video. This growth reflects a decade-long dominance by games that has now been disrupted by the rapid ascent of streaming platforms.
ERA CEO Kim Bayley noted, “Streaming changed all that and has transformed not just the viewing habits of tens of millions but the fortunes of the entire movie and TV business.”
Games’ Steady Growth and Digital Maturity
Gaming, while experiencing a more modest growth of 2.9% in 2023, remains a digital powerhouse, now more than twice the size it was in 2013. Digital sales constitute around 90% of gaming revenue, highlighting the industry’s rapid shift to digital maturity. Despite challenges in physical game sales, the gaming sector continues to connect with diverse demographics across various channels.
Bayley emphasized, “Gaming is the most digitally native sector of the entertainment business and in 2023 it continued to show its ability to connect with people across every channel and demographic.”
In 2023, Taylor Swift emerged as the UK’s most-streamed artist, leading charts on Spotify, Apple Music, and Deezer. While setting an all-time record for the most Apple Music listeners in a year, she did not claim the most-played song on any platform. The honors for that went to Dave and Central Cee’s “Sprinter” on Spotify and Miley Cyrus’s “Flowers” on Apple and Deezer. Taylor Swift’s album “Midnights” topped Spotify’s most-streamed albums list in the UK. The year-end charts also revealed user preferences, with Apple leaning towards pop and dance, and Spotify favoring harder sounds.
Globally, Taylor Swift dominated with 26.1 billion streams on Spotify alone. Other notable achievements included SZA’s success with the album “SOS” and the single “Kill Bill.” Rema and Selena Gomez’s collaboration, “Calm Down,” was the most Shazammed song of the year. Overall, the diversity of musical styles gaining popularity in 2023 suggests a diminishing relevance of genres. The Official Charts will release the overall biggest songs of the year in January, while figures from YouTube and Amazon Music are still awaited.
