UK Music Streaming Subscription Revenues Increase in 2024

The UK music streaming subscription market saw a healthy growth last year, with a year-over-year increase of 7.8%.

This is according to new preliminary statistics from the Entertainment Retailers’ Association (ERA), which includes major players such as Spotify, Amazon, YouTube, and SoundCloud.

The ERA's data indicates that UK consumers spent approximately GBP £2.018 billion (USD $2.58 billion) on music streaming subscriptions in 2024. This marks a significant rise from the GBP £1.870 billion registered in 2023, reflecting a monetary increase of GBP £146.4 million.

To clarify, the figures reported by ERA represent retail amounts—this is the total consumers spent on subscriptions, not the wholesale revenue received by music rightsholders. Notably, these figures exclude revenues from ad-supported tiers.

Particularly, the financial growth in the UK subscription market in 2024 is largely attributed to one streaming giant: Spotify. In April 2024, Spotify announced price increases across several of its subscription tiers in the UK, which is the third-largest recorded music market globally.

Specifically, Spotify's Premium Individual tier saw an increase of GBP £1 per month, now costing £11.99 per month. Meanwhile, their Duo and Family plans both rose by GBP £2 to £16.99 and £19.99 per month, respectively.

This price adjustment marked Spotify's second increase in the UK within two years, having previously raised prices in July 2023, breaking their long-standing £9.99 monthly charge.

As previously noted, data from the UK’s Competition and Markets Authority (CMA) indicated that Spotify held over 50% of the market share of all music streaming monthly active users—both free and premium—by December 2021.

Overall Music Revenue in the UK

ERA's recent figures also encompass physical music sales and downloads. Their data shows that annual physical music revenues (including CD and vinyl sales) rose by 6.2% YoY in 2024, totaling GBP £330.1 million (USD $421.9 million).

Conversely, download sales saw a decline of 3.2% YoY, amounting to GBP £41.3 million ($52.8 million).

In total, UK recorded music sales for 2024—considering subscription streaming, physical products, and downloads—reached GBP £2.390 billion (USD $3.05 billion), representing a 7.4% YoY increase. This total sets a new record for the UK recorded music industry, surpassing the previous peak of GBP £2.222 billion set in 2001.

However, it is essential to note that this figure does not account for inflation. When adjusted for inflation, the GBP £2.222 billion from 2001 would equate to approximately GBP £4.081 billion by the end of 2024, based on data from the Bank of England.

Future of Music in the UK

ERA CEO Kim Bayley stated, "2024 was a banner year for music, with both streaming and vinyl driving the industry to unprecedented heights in value and volume. This remarkable achievement highlights the resurgence of music, with sales doubling since their lowest point in 2013. We can clearly declare—music is back."

The combined sales of music, video, and games in the UK, as surveyed by ERA, exceeded £12 billion for the first time in 2024, marking the twelfth consecutive year of growth and the eighth successive all-time high.

ERA Chair Linda Walker commented, "We are observing a fundamental shift in how the entertainment industry operates. Digital services and retailers have become the primary drivers of market growth. In past decades, new releases were the primary revenue contributors. However, in 2024, subscription sales now play a much more crucial role."

Note: All currency conversions from GBP to USD were made at the average annual exchange rate for 2024.

music, streaming, revenue