In 2024, the UK music industry witnessed a significant surge in consumer spending on recorded music, driven by major releases from artists like Taylor Swift, Coldplay, and Billie Eilish. Total expenditures reached £2.4 billion, surpassing the previous record set in 2001. Streaming subscriptions and vinyl sales were key contributors to this growth. The Digital Entertainment and Retail Association (ERA) highlighted that streaming services accounted for nearly 85% of music revenue, while vinyl sales grew by 10.5%. Despite this success, concerns remain about artist compensation in the streaming economy.
The home entertainment sector also saw notable trends, with video content leading the charge at over £5 billion in spending. Video games experienced a slight decline in revenue, attributed to high-profile failures and a shift towards digital formats. EA Sports FC 25 topped the charts, while Nintendo's Switch maintained its influence with several exclusive titles in the top 10.
Music Sales Surge: A Year of Record-Breaking Milestones
The year 2024 marked a pivotal moment for the UK music industry as it achieved unprecedented levels of consumer expenditure. Driven by the allure of new releases from popular artists, listeners spent a record-breaking £2.4 billion on recorded music. This remarkable achievement surpassed the previous peak set during the CD era in 2001. Key factors contributing to this growth included robust streaming subscriptions and a resurgence in vinyl records. Taylor Swift's latest album became the best-selling release of the year, underscoring the enduring appeal of top-tier artists.
The ERA reported that streaming services such as Spotify, Amazon Music, and Apple Music dominated the market, accounting for almost 85% of total music revenue. Vinyl records also enjoyed a renaissance, with sales increasing by 10.5% and generating £196 million. While CD sales remained stable at £126.2 million, vinyl's growing popularity indicated a nostalgic trend among consumers. Despite these successes, the industry still faces challenges, particularly concerning fair compensation for musicians in the streaming era. According to the Musicians Union, many artists earn less than £14,000 annually, highlighting ongoing issues within the business model.
Home Entertainment Trends: Video Dominates, Gaming Shifts
Beyond music, the broader home entertainment landscape in the UK revealed distinct trends in 2024. Video content emerged as the most popular form of home entertainment, with consumers spending over £5 billion on streaming services, movie rentals, and DVDs. The comic book movie Deadpool & Wolverine led the pack in terms of sales, with a significant portion being digital purchases. This trend underscores the growing preference for convenient, on-demand viewing options.
In contrast, the video game industry faced a challenging year, experiencing a drop in revenue from £4.8 billion in 2023 to £4.6 billion in 2024. Several highly anticipated titles failed to resonate with audiences, contributing to this decline. The shift away from physical boxed games was pronounced, with sales plummeting by 35%. EA Sports FC 25, however, managed to dominate the market, selling 2.9 million copies, mostly in digital formats. Notably, Nintendo's Switch console continued to perform strongly, with half of the top 10 games being exclusive to the platform. This highlights the console's ability to attract both casual and hardcore gamers with its unique offerings.