MEASURING MUSIC 2018 REPORT - UK Music

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MEASURING MUSIC 2018 REPORT - UK Music
MEASURING
MUSIC
2018 REPORT
MEASURING MUSIC 2018 REPORT - UK Music
UK MUSIC · MEASURING MUSIC                                                               3

                                                                                                    CONTENTS
                                                                                                 WELCOME
                                                                                                  Margot James MP                                       3
                                                                                                  Minister of State for Digital & Creative Industries

                                                                                                 INTRODUCTIONS

                                                            IMAGE
                                                                                                  Michael Dugher                                        4
                                                                                                  CEO, UK Music
                                                                                                  Andy Heath MBE                                        4
                                                                                                  Chairman, UK Music

                                                                                                 HEADLINE 2017 FIGURES FOR UK MUSIC INDUSTRY            6

                                                                                                 THE UK MUSIC INDUSTRY’S 2017 ECONOMIC                  7
                                                                                                 CONTRIBUTION IN NUMBERS
                                                                                                 CHALLENGES WE FACE                                     12
                                                                                                 WORKING IN THE MUSIC BUSINESS
                                                                                                  Ralph Salmins                                         15
                                                                                                  Printed Music Licensing Limited                       16
                                                                                                  Nadia Khan                                            17
                                                                                                  Metropolis Studios                                    18
                                                                                                  PPL PRS Ltd                                           19
                                                                                                 METHODOLOGY                                            21
                                                                                                 ACKNOWLEDGEMENTS                                       23

Photo Credit | Sheku Kanneh-Mason | © Lars Borges / Decca
MEASURING MUSIC 2018 REPORT - UK Music
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WELCOME                                                                                                               INTRODUCTIONS
                                I am delighted to welcome the             We    recognise   that   protecting                                      The figures in this Measuring Music       and build on this success for the
                                findings in this year’s Measuring         copyright is crucial to music’s                                          report reveal that British music is       future?
                                Music report and congratulate UK          success and that we are committed                                        doing incredibly well.
                                Music for their commitment to             to addressing the transfer of value                                                                                If we want to produce the next
                                producing firm evidence on behalf of      from the creative industries and                                         These are exciting times with our         generation of global British stars for
                                their sector.                             progress work on closing the value                                       contribution to the economy at a          the future, we’ve got to think about,
                                                                          gap at European and domestic levels.                                     record high £4.5 billion, exports are     plan and invest in that future.
                                Working with Michael and his                                                                                       rising significantly, and growth in the
MARGOT JAMES MP                 excellent team remains a perk of          The Government also recognises the          MICHAEL DUGHER               creative industries overall is twice as   We have to make sure that every
Minister of State for Digital                                                                                         CEO, UK Music                                                          child, regardless of what background
& Creative Industries
                                my job. The report demonstrates           challenges music venues face with                                        fast as the rest of the economy.
                                continued sustained growth with the       35 per cent closing over the past                                                                                  they come from or how much
                                music industry now contributing £4.5      decade. Working alongside Ministry                                       I’m really proud of the fact that these   money their parents have, has the
                                billion to the economy. Exports have      of Housing, Communities and Local                                        figures show that when it comes to        opportunity to access music, to enjoy
                                risen to £2.6 billion and the sector      Government we introduced the                                             music, we in the UK are very, very        its transformative power and to try
                                employs 145,815 people.                   agent of change principle in the new                                     good at what we do.                       out a career in a the industry if they
                                                                          National Planning Policy Framework,                                                                                want to.
                                2017 was a very successful year           providing a much needed tool to                                          But when things are going well, that
                                globally for the UK music industry.       venues as part of any planning                                           is exactly the time when we need to       The UK music industry is ready to
                                Ed Sheeran’s third album ÷ (Divide)       disputes. Music venues are crucial                                       think about the future. We need to        play its part. We want to work with
                                was the biggest selling album of the      to the future success of our music                                       use this as an opportunity not for a      government and others to build on
                                year. The O2 in London was officially     industry and we are committed to                                         moment of self-congratulations, but       our current success so we can achieve
                                the most popular live music arena in      protecting them.                                                         to say: what do we need to do today       even more in the future.
                                the world. Five of the top ten most                                                                                to ensure that we protect, nurture
                                successful worldwide tours were           I am confident that the UK music
                                from UK acts. 2018 is proving to be no    industry is brilliantly placed to benefit
                                different.                                from the opportunities that lie ahead
                                                                          of us and maintain the global success       We are fortunate that levels of             gems that make our industry so
                                We need to build on these                 story it undoubtedly is.                    creativity in the music industry are        unique.
                                achievements and as the Minister                                                      really promising at the moment.
                                responsible      for  the  creative                                                                                               Due to our success, there are some
                                industries I am firmly committed to                                                   It is a fantastic time for music-           digital services that are trying to
                                doing just that.                                                                      makers and for consumers – both             break the unity we saw over the
                                                                                                                      in the variety of music on offer and        recent copyright battle to increase
                                Earlier this year the Government,                                                     the different ways that people can          their own already huge profits.
                                in partnership with our creative                                                      choose to listen to music.                                                              ANDY HEATH MBE
                                industries, introduced a sector deal                                                                                              I would just urge people to beware          Chairman, UK Music
                                as part of our Industrial Strategy. The                                               However, there are challenges. It is        of Greeks bearing gifts in an effort
                                Creative Industries Sector Deal sets                                                  difficult in the digital age to break       to divide us. We are far stronger and
                                out firm commitments to support                                                       new talent because of the sheer             more successful as an industry when
                                sectors like music.                                                                   quantity of music out there in a            we work together.
                                                                                                                      crowded marketplace.

                                                                                                                      That difficulty is growing and means
                                                                                                                      brilliant creators have to fight harder
                                                                                                                      than ever to get their music heard.

                                                                                                                      In the years ahead, it will be a test
                                                                                                                      to help audiences and consumers
                                                                                                                      differentiate and find the musical
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HEADLINE 2017 FIGURES FOR UK MUSIC                                                                                THE UK MUSIC INDUSTRY’S 2017 ECONOMIC
INDUSTRY                                                                                                          CONTRIBUTION IN NUMBERS
                                                                                                                                               We have used the same definition for        This is followed by a graphic below

£4.5 BILLION
Total Gross Value Added (GVA) contribution
                                                         £2.6 BILLION
                                                         Total export revenue generated by the UK
                                                                                                                                               the core music industry in this report
                                                                                                                                               as we did in our first assessment of
                                                                                                                                               its economic contribution.
                                                                                                                                                                                           which shows the number of jobs
                                                                                                                                                                                           sustained in 2017.

generated by the UK music industry 2017                  music industry in 2017                                                                                                            While       musicians,      composers,
                                                                                                                                               The table below displays the                songwriters and lyricists contributed
                                                                                                                                               relationship between what UK Music          over £2 billion in Gross Value Added
                                                                                                                                               has identified as Sectors (Thematic         (GVA) to the UK economy last year,
145,815
Total Full-Time equivalent UK employment
                                                         60%
                                                         Almost 60% of PRS for Music International
                                                                                                                                               Groups) and Sub Sectors (Elements of
                                                                                                                                               the Core) within the music industry.
                                                                                                                                                                                           and producers, recording studios
                                                                                                                                                                                           and their staff contributed £122
                                                                                                                                                                                           million, it is vital to understand that
sustained by music in 2017                               revenue comes from Europe                                                             The infographic overleaf shows              these figures do not reflect the level
                                                                                                                                               the music industry’s contribution           of their earnings. A small proportion
                                                                                                                                               in goods and services, known as             of those in the industry do earn well.

12%                                                      £355 MILLION
                                                                                                                                               Gross Value Added (GVA), to the UK’s        But there are also many in the music
                                                                                                                                               national income or Gross Domestic           business who earn an average or
Increase in overseas revenues that were                  International revenue collected by PPL                                                Product (GDP). Exports are the part         below average salary.
earned by UK record labels in 2017                       over the last 10 years for performers and                                             of this contribution generated by
                                                         record companies                                                                      revenues outside the UK.

                                                                                                                      SECTORS                                    SUB SECTORS
                          The success of the UK music industry        has to date delivered an £11 return
                          is testimony to a creative sector that      on every £1 invested to help support                                                     Musicians, singers
                                                                                                                      Musicians, Composers,
                          is punching well above its weight           mainly         independently-signed             Songwriters & Lyricists
                          as the world’s largest exporter of          artists develop their fan-bases and                                                      Composers, songwriters, lyricists
                          music outside of the US. Alongside          commercial opportunities overseas.
                          Ed Sheeran, the most recent albums          There is a strong case for this being                                                    Record labels
                          by Rag’n’Bone Man, Sam Smith                extended beyond the current 2020
                                                                                                                      Recorded Music                           Online music distributors
                          and Harry Styles all featured in the        target.
                          International Federation of the
                                                                      The UK music industry is involved                                                        Design and manufacture of physical product and packaging
                          Phonographic Industry’s (IFPI) global
                          top 10 for 2017.                            in international trade missions and
                                                                                                                                                               Music festival organisers, music promoters, music agents
                                                                      events. This includes collaborative
                          Collaborative initiatives that see          working between organisations like
                                                                                                                                                               Production services for live music
                          the UK Government working in                AIM, BPI, MPA, PPL and PRS for Music
                                                                                                                      Live Music
                          partnership with the music industry         in promoting British music. Recent                                                       Ticketing agents – the proportion of their activities
                          have also helped to raise the               missions include visits to growing                                                       involved with live music
                          international profile of British artists.   markets including China and India,                                                       Concert venues and arenas – the proportion of their
                          The Music Export Growth Scheme              while the annual LA Sync mission and                                                     activities involved with live music
                          (MEGS) – managed by the BPI and             UK presence at MIDEM in France and
                                                                                                                      Music Publishing                         Music publishers
                          funded by the Department for                SXSW in Austin, Texas are key fixtures
                          International Trade (DIT) as part of        in the music industry calendar.
                                                                                                                                                               Collecting societies
                          the Export is GREAT campaign – has          The industry also takes a proactive
                          now distributed over £3 million to          approach for events designed to                 Music Representatives                    Music managers
                          around 200 music exports projects           attract international buyers to the UK,
                          since it made its very first awards         such as The Great Escape in Brighton.                                                    Music trade bodies
                          to 15 artists in February 2014. MEGS
                                                                                                                                                               Music producers
                                                                                                                      Music Producers, Recording Studios
                                                                                                                      and Staff
                                                                                                                                                               Recording studios and staff
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TOTAL GVA CONTRIBUTION 2017                                                                                                                                                                                                2017 EMPLOYMENT

£4.5 BILLION                                                                                                                                                       1,049                                                            145,815
                                                                            £12

                                                                                                                                                                                                    28,659
                                                                                                                                                                in Publishing
                                                               9M              2M

                                                                                                                                                                                9,641
                                                             £9

                                                                                                                                                       2,284                    in Recorded
                                 £505M

                                                                                                                                       £2 BN
                                                                                                                                                 Representatives
                                                                                                                                                                                                    in Live

                                                                                                                                                                   13,029
                                                                                                                                                                   in Production
                                                                                                  0M
                                                                                            £70

                                                                                                                                                                   91,153
                                           £9
                                                91
                                                     M

                                                                                    TOTAL EXPORT REVENUE 2017

                                                                                                           £2.6 BILLION
                                                                                                                                                                   Musicians
                                                                               M
                                                                             48
                                                                           £3

                                                                                                  £25
                                                                                                    M

                                                                                                                                       £978M
                                                 £719M

                                                                                  £8
                                                                                       0M

                                                                                                                    M
                                                                                                               68
                                                                                                          £4

            Production           Musicians               Recorded            Live            Publishing             Representatives                     Production          Musicians    Recorded     Live    Publishing      Representatives

* GVA is the grand total of all revenues, from final sales and (net) subsidies, which are incomes into businesses. Those
  incomes are then used to cover expenses (wages & salaries, dividends), savings (profits, depreciation), and (indirect)
  taxes. Total Export revenue equals the total receipts generated from music within all sectors from outside the UK.
MEASURING MUSIC 2018 REPORT - UK Music
Photo Credit | Rag’n’Bone Man performing at the Brit Awards 2018 | © JM Enternational, Courtesy BRIT Awards Limited/BPI
MEASURING MUSIC 2018 REPORT - UK Music
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CHALLENGES WE FACE
         The clear evidence of continuing         According to a UK Music survey, 17 per      to commit to a new National Plan           not receive equivalent assistance,
         growth across the music industry         cent of music creators were educated        for Music Education. It must also          reinforcing financial challenges that
         outlined in our Measuring Music          at fee-paying schools - compared with       consider how creative learning             the sector faces.
         report is fantastic news.                seven per cent across the population        can be incentivised in schools. For
                                                  as a whole. This matters because 50         example, a school should not receive       It is vital that big tech plays its part
         But it is vital we recognise the         per cent of children at independent         an “outstanding” Ofsted rating if it       in addressing this problem. Google-
         challenges we face in the years          schools receive sustained music             does not provide adequate provision        owned YouTube needs to return fairer
         ahead. We will need to meet these        tuition, while the figure for state         for music education. Music education       rewards.
         challenges if we are to safeguard        schools is only 15 per cent. That has       hubs should be made more
         the continued success of our sector.     to change.                                  accountable to local stakeholders.         At present, creators can expect to get
         As well as highlighting success, we                                                                                             as little as £0.00054 per stream from
         must also recognise a number of          As we highlighted in our UK Music           Additionally, ahead of the 2018            the service.
         issues facing our industry today.        Talent Pipeline report earlier this         Budget, UK Music called for a review
         These affect thousands of jobs in our    year, the latest GCSE results revealed      into the funding of music in state         On infrastructure some solutions
         industry, supporting and influencing     a 7.4 per cent drop in the number           education to evaluate the impact           have been put in place for music
         the pipeline that will produce future    of pupils taking the subject despite        that pressures on school budgets is        venues, where 35 per cent have
         talent.                                  overall GCSE entries increasing by 0.2      having.                                    closed across the past decade. This
                                                  per cent in the 2017/18 academic year.                                                 includes the welcome introduction of
         We report that creators contribute       This follows an 8 per cent drop in the      The UK Music Talent Pipeline Report        the agent of change principle by the
         £2bn in Gross Value Added but as set     2016/17 academic year. One fifth of         also highlighted that financial            UK Government to tackle planning
         out on page 8 this does not reflect      schools did not offer GCSE Music that       barriers can act as a significant hurdle   disputes affecting music venues.
         their level of average earnings in the   year. Of those that did, 11 per cent        for the music talent pipeline with 46      However, hikes in business rates
         industry. For too many, this remains a   were taught outside curriculum time.        per cent of musicians, composers,          and licensing issues still present
         low-earning sector.                                                                  songwriters and lyricists needing          problems for grassroots music
                                                  In 2010 the EBacc, which excludes           financial help from family and friends     venues, significantly cutting the
         According to the Office of National      creative subjects such as music, was        at some point in the development of        chances for up and coming musicians
         Statistics, the average wage in the UK   introduced. A total of 59.7 per cent        their professional music career.           to develop their skills.
         in 2017 was £29,002 per annum. After     of state schools say it has had a
         analysing the earnings of 21 million     negative impact on music provision          Exciting schemes do exist which            There is also Brexit and the
         people, it concluded music creators      and uptake, according to a study            can tackle this. For instance, the         implications of new restrictions on
         earned significantly less at £20,504     conducted by the University of              PRS Foundation Momentum Music              our ability to tour the EU, coupled
         than many other professions. So, it      Sussex.                                     Fund was set up to address the             with other uncertainties for the
         is no surprise that financial barriers                                               growing disconnect in the funding          industry at this critical time.
         remain a major impediment in the         This is also a story that is mirrored at    of emerging artists. The Fund
         development of talent.                   A-Level which is under threat due to        provides career-boosting grants to         These are just a few of the hurdles
                                                  schools and colleges no longer being        precommercial, independent artists         that present challenges to our talent
         If we want to keep producing world-      able to afford a budget to keep music       at a crucial tipping point in their        pipeline. We need to work with the
         leading stars in every field, we need    courses running. A survey by the            career. The Government must partner        Government, as well as devolved
         to open up opportunities to music so     Association of Schools and college          with tipping point programmes like         administrations and city region
         that they are available to people of     leaders (ASCL) revealed that four in        Momentum to feed further growth.           mayors to address these concerns.
         all backgrounds. And we also need        10 have had to cut back on lesson                                                      Industry must also play its part to
         to invest in music education, venues,    time, staff or facilities for A-Level       The UK Government has recently             ensure that the UK music industry
         rehearsal spaces and other areas         Music over the last two years.              developed a number of creative             continues to grow and is vibrant,
         that combine to form the unique                                                      sector tax credits to incentivise new      diverse and even successful in the
         ecosystem of the music industry.         The   Government      urgently    needs     productions, however music does            years ahead.
MEASURING MUSIC 2018 REPORT - UK Music
UK MUSIC · MEASURING MUSIC                                                         15

                                                 WORKING IN THE MUSIC BUSINESS
                                                 RALPH SALMINS - MUSICIAN
                                                 There are a huge variety of jobs         of more than 150 movies, including
                                                 within the ecosystem of the UK           Harry Potter: The Prisoner of Askaban,
                                                 Music industry. We have taken a look     Goldeneye, Tomorrow Never Dies,
                                                 at some of those roles to show how       Charlie and The Chocolate Factory,
                                                 they fit into a complex infrastructure   Moulin Rouge and Lord Of The Rings:
                                                 which produces music and talent          Return Of The King. Ralph joined The
                                                 that is the envy of the world.           Waterboys in 2011 and continues to
                                                                                          record and tour internationally with
                                                 Musicians are at the core of the         the band.
                                                 industry and the story behind
                                                 drummer Ralph Salmins’ career is an      Ralph’s love of jazz has led to work
                                                 inspirational one.                       with some of the legends of the art
                                                                                          form that include The Count Basie
                                                 Ralph’s signature groove has made        Orchestra, Mose Allison, Herb Ellis,
                                                 him drummer of choice for producers      Art Farmer, Jon Hendricks, John Lewis,
                                                 and composers worldwide and he has       Joe Lovano, Wynton Marsalis, James
                                                 performed or recorded with Sir Paul      Moody, Mark Murphy, Annie Ross,
                                                 McCartney, George Martin, Aretha         Jimmy Witherspoon and Joe Williams.
                                                 Franklin, Elton John, Madonna, James     He is currently a member of The Guy
                                                 Brown, Sir Tom Jones, Mike Oldfield,     Barker Jazz Orchestra, Colin Towns’
                                                 Chaka Khan, Dionne Warwick, Quincy       Mask Orchestra and is a regular guest
                                                 Jones, Diana Ross, Burt Bacharach,       with the NDR Big Band in Hamburg.
                                                 Alison Krauss, Sheryl Crow, Elvis
                                                 Costello, Jeff Beck, Michel Legrand      In 2012, Ralph acted as consultant
                                                 and many more.                           for the London Olympic Opening
                                                                                          Ceremony,     co-ordinating   1,000
                                                 He played his first professional gig     drummers with whom he performed
                                                 when aged just 16 with a working         to an audience of over 1 billion.
                                                 dance band and his playing and           When at home he records, composes,
                                                 stagecraft developed during his          produces and teaches at his own
                                                 teens thanks to such extensive stage     Bunker Studio where Georgie Fame,
                                                 experience. This was followed by his     Hamish Stuart, Jocelyn Brown, Nick
                                                 studying classical percussion at The     Mason, Billy Cobham, David Sanborn
                                                 Guildhall School of Music & Drama in     and Michael McDonald have also
                                                 London.                                  recorded.

                                                 Ralph then secured the drum seat         Ralph is also a Professor at the Royal
                                                 in Van Morrison’s band, touring the      College of Music, having worked
                                                 world from 1995 to 1999, in addition     there for over 25 years, and been a
                                                 to recording four albums with the        Professor at The Guildhall for 7 years.
                                                 legendary vocalist.

                                                 He has played on the soundtracks

Photo Credit | Ralph Salmins | © Ralph Salmins
MEASURING MUSIC 2018 REPORT - UK Music
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PRINTED MUSIC LICENSING LIMITED                                                                                  NADIA KHAN
                                                                                                                 Artist Manager CTRL Management &
It is vital that we nurture our talent    Department for Education centrally                                     Founder of Dench Records
pipeline if Britain is to maintain        pays for the SPML for all schools
its reputation for producing music        within England (the licence is also                                     Managers are an important part of what
stars in every field. A crucial part of   available to schools in Scotland,                                       makes the music industry tick. Here,
safeguarding that talent is the role of   Northern Ireland and Wales). At                                         Nadia Khan explains her work and her
music in education.                       present, around 125 music publishers                                    determination to inspire more women
                                          have mandated their rights to be                                        to join her on the frontline.
Printed Music Licensing Limited           included for this scheme. This allows
(PMLL) runs the Schools Printed           a broad selection of repertoire to be                                   Nadia Khan, who manages Lethal Bizzle
Music Licence (SPML). This scheme         accessed by teachers from across                                        and runs Dench Records sits on the
allows teachers to photocopy and          the UK. The monies received are                                         board of the Association of Independent
arrange printed music as part of the      distributed back to music publishers                                    Music.
educational provision of the school.      using data collected from schools
Schools have been benefiting from         regarding what publications have                                        ‘I started in the industry over 16
this licence since 2012 and it has        been copied and reinvested into                                         years ago, my first steps into the
allowed greater access to music for       new copyrights. The licence ensures                                     music industry was a two-week work
many students. Rather than having         that not only are rightsholders being                                   experience placement at a music PR
to buy copies of sheet music for a        fairly remunerated for the use of                                       company. I was determined not to leave
whole class the school only needs         their works but also that teachers                                      until they gave me a job. It was here that
to own one original to make copies.       have greater access to all genres of                                    I met my first management client, Lethal
By allowing arrangements under the        music and are free to copy sheet                                        Bizzle, working on his record “Pow!” in
licence teachers can tailor songs         music without fear of infringement.                                     2004 - and I approached him to manage
for not only the voices but also the                                                                              him. I still represent him 15 years later!
available instruments letting staff       PMLL is part of the Music Publishers
make the most of what is available        Association Group of Companies.                                         One of the biggest challenges I faced
often within a limited budget. The                                                                                was getting people to take me seriously
                                                                                                                  as I started in the industry quite young
                                                                                                                  and there weren’t any female managers
                                                                                                                  in grime at that time, so it was a big
 “The SPML is a great example of how rightsholders are finding
                                                                                                                  challenge. I’m happy to see a lot more
 licensing models to meet the practical needs of music users, in
                                                                                                                  females working in the industry and in
 this case students and teachers in schools. Our broad publisher
                                                                                                                  management especially and through
 mandate ensures that virtually all printed music is covered, also
                                                                                                                  my work with Women In CTRL hope to
 enabling us to provide proper and fair remuneration for music
                                                                                                                  inspire more females to get into the
 creators. We will evolve and adapt the SPML and our other licensing
                                                                                                                  industry.
 schemes on a continuous basis to ensure that we continue to meet
 the ever-changing sheet music needs – both physical and digital –                                                At a time where grime was considered
 of teachers, students and musicians.”                                                                            too underground, myself and Bizzle
                                                                                                                  started Dench Records to release our
                                                          Richard King
                                                                                                                  own records. Without any mainstream
                                          CEO of Faber & Chair of PMLL
                                                                                                                  radio we independently charted 2 top
                                                                                                                  20 and 3 top 40 singles.’

                                                                                                               Photo Credit | Act | © Photographer / Organisation   Photo Credit | Nadia Khan | © Nadia Khan
MEASURING MUSIC 2018 REPORT - UK Music
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METROPOLIS STUDIOS                                                        PPL PRS LTD
It is a source of great national pride                                    Everyone wants to get properly paid
that musicians in the UK are respected,                                   for their work – and that includes
resourced and revered. Central to that                                    those who work in the music industry.
is the UK Studio Industry. Everyday                                       PPL PRS is the new joint venture
people get out of their beds and come                                     between the UK’s two music licensing
to work for one reason: to provide the                                    societies which joined forces to make      “In PPL’s 84 year history, the joint venture with PRS for
environment for a musician to reach                                       it easier to get a music licence to play   Music is without doubt the most ambitious project that
their full potential. And as a country,                                   or perform music in public.                we have undertaken. To navigate the complexities and
we do this better than anybody in the                                                                                achieve it within two years is testament to our close
world. From some of the most famous                                       The creation of PPL PRS Ltd was            working relationship with PRS and the commitment
state of the art studios in the world                                     a hugely ambitious project and is          of our respective teams. This is an important moment
to our peerless sound and mastering                                       the biggest joint venture of its kind      for the music business at large and is a move towards
engineers, producers and mixers we are                                    between an author and neighbouring         greater efficiencies for our licensees and greater returns
home to the professionals whose one                                       rights     Collection    Management        for our members who create the music enjoyed by those
sole role is to make the artists vision a                                 Organisation [CMO] in the world.           we license all around the UK.”
reality.                                                                  The new company has been created
                                                                          to administer all of PPL and PRS for                                                 Peter Leathem
But we are in danger of squandering this                                  Music’s licensing of music used by                                               PPL Chief Executive
resource and losing one of this country’s                                 businesses and other organisations
greatest cultural contributions. There                                    in public, known as ‘public
are many reasons for this - business rate                                 performance’. It aims to provide           “We have invested years of effort and millions of pounds
hikes, developers turning studios into                                    customers with a streamlined service,      to simplify music licensing for UK businesses and on
apartments and the costs of remaining                                     a single point of contact, and one         behalf of PRS for Music, I am delighted to launch what
state-of-the-art all contribute. Time and                                 licence covering both PPL and PRS          is the largest joint venture of its kind in the world. This
time again we have seen the buildings                                     for Music’s respective rights, thereby     is the beginning of a new era in public performance
that witnessed the recording of some of                                   simplifying the administration and         licensing, which will bring real benefits to our members
the most important music in the world                                     making it easier to obtain a licence       and customers alike..”
turned in to somebody’s living room or                                    to play and perform music in public.
                                                                                                                                                             Robert Ashcroft
office space.                                                             In the long term, the joint venture
                                                                                                                                                 PRS for Music Chief Executive
                                                                          is expected to generate greater
Clearly nobody is immune to change                                        revenues for members as a result
or deserves a living they don’t work                                      of making operations even more             “We are very excited to now offer customers of both PPL
for. However the environment where                                        efficient.                                 and PRS for Music a more streamlined approach for
an emerging or established UK music
                                                                                                                     licensing their businesses to play and perform music.
act can experiment, fail, flourish and
                                                                                                                     With the launch of TheMusicLicence we are providing
succeed all within one room with a
                                                                                                                     one licence and one contact, enabling companies and
team of professionals dedicated to
                                                                                                                     organisations to enhance their customer and employee
their talent deserves preserving. We
                                                                                                                     experience by playing music in their premises.”
connect musicians, artists, songwriters,
producers and engineers - we support                                                                                                                          Suzanne Smith
the artists that produce the music that                                                                                                        Managing Director, PPL PRS Ltd.
powers a £4.5 billion UK business and
we have done this for 100 years and we
want to do it for the next 100.

                         Richard Connell
Metropolis Studios Chief Executive Officer
UK MUSIC · MEASURING MUSIC                                                                                 21

                                                                                                                    METHODOLOGY
                                                                                                                                                 We have followed the same approach        moves across international borders.
                                                                                                                                                 to Measuring Music over the last          That is non-resident consumers
                                                                                                                                                 six years. In 2019 there will be a        and/or businesses are making
                                                                                                                                                 thorough survey review. In respect of     purchases outside the UK which,
                                                                                                                                                 data inputs, the number of musician       through a wide range of channels,
                                                                                                                                                 survey respondents this year was          transfer back across international
                                                                                                                                                 over 1000.                                borders to UK-based businesses.

                                                                                                                                                 In respect of what UK Music               Export     income     comprises     an
                                                                                                                                                 traditionally defines as the music        unusually large proportion of revenue
                                                                                                                                                 industry we generate results in terms     to UK music publishing and music
                                                                                                                                                 of GVA (Gross Value Added), exports       representatives. Therefore, because
                                                                                                                                                 and employment – which are the            of this, what remains as total GVA is
                                                                                                                                                 same metrics that are consistently        less than its total export revenue.
                                                                                                                                                 reported by the Department for
                                                                                                                                                 Digital, Culture, Media and Sport         Natalie Williams
                                                                                                                                                 (DCMS). While limitations in the          Head of Research UK Music
                                                                                                                                                 Standard Industrial Classification
                                                                                                                                                 (SIC) codes apply to these metrics
                                                                                                                                                 when reported by DCMS, these
                                                                                                                                                 limitations do not apply to the results
                                                                                                                                                 that we report here in Measuring
                                                                                                                                                 Music.

                                                                                                                                                 We would like to add a note of
                                                                                                                                                 clarification on exports: UK Music
                                                                                                                                                 uses the Organisation for Economic
                                                                                                                                                 Co-operation      and    Development
                                                                                                                                                 (OECD) definition of exports, which
                                                                                                                                                 is recognised internationally by
                                                                                                                                                 governments and other agencies.
                                                                                                                                                 This states: *“Exports of goods and
                                                                                                                                                 services consist of sales, barter, or
                                                                                                                                                 gifts or grants, of goods and services
                                                                                                                                                 from residents to non-residents”.
                                                                                                                                                 For example, when non-residents of
                                                                                                                                                 the UK spend money on tickets for
                                                                                                                                                 music concerts or festivals in the
                                                                                                                                                 UK, they are contributing to exports,
                                                                                                                                                 as they are non-residents spending
                                                                                                                                                 on the services of residents. But,
                                                                                                                                                 in respect of most of the exports
                                                                                                                                                 covered in Measuring Music, money

Photo Credit | Rita Ora performing at the Brit Awards 2018 | © JM Enternational, Courtesy BRIT Awards Limited/BPI
22                                                                                    UK MUSIC · MEASURING MUSIC   UK MUSIC · MEASURING MUSIC                                                                                 23

                                                                                                                   ACKNOWLEDGEMENTS
Measuring Music is created on behalf       The UK Live Music Group is made up
of UK Music and its members to             of members of the Association for
highlight the economic contribution of     Electronic Music (AFEM), Association of
the music industry to the UK economy.      Independent Festivals (AIF), Association
                                           of Festival Organisers (AFO), Concert
2018 is the sixth edition of the report,   Promoters Association (CPA), Agents
which was first published in 2013.         Association (AAGB), International Live
                                           Music Conference (ILMC), National
UK Music is the umbrella organisation      Arenas Association (NAA), Production
which represents the collective            Services Association (PSA) and Music
interests of the UK’s commercial music     Venue Trust (MVT) with contributions
industry - from artists, musicians,        from PRS for Music Foundation, MU,
songwriters and composers, to              MMF, FAC and BPI.
record labels, music managers, music
publishers, studio producers, music
licensing organisations and the live
music industry. The members of UK
Music are: AIM, BASCA, BPI, FAC, MMF,
                                                                                                                                                Throughout this project we have          For all media enquiries contact:
MPA, MPG, MU, PPL, PRS for Music and
                                                                                                                                                received support from all parts of the
the Live Music Group                                                                                                                                                                     Vincent Moss & Megan White
                                                                                                                                                music industry with this research.
                                                                                                                                                                                         vincent.moss@ukmusic.org
                                                                                                                                                Without their collaboration and
                                                                                                                                                                                         megan.white@ukmusic.org
                                                                                                                                                enthusiasm this report would not
                                                                                                                                                be possible.                             For all policy enquires contact:
                                                                                                                                                                                         Tom Kiehl & Felicity Oliver
                                                                                                                                                Each member of UK Music has              tom.kiehl@ukmusic.org
                                                                                                                                                granted us access to their data          felicity.oliver@ukmusic.org
                                                                                                                                                and permission to survey their own
                                                                                                                                                                                         For all education enquires contact:
                                                                                                                                                membership directly. In addition,
                                                                                                                                                                                         Oliver Morris
                                                                                                                                                accountants of some of the UK’s
                                                                                                                                                                                         oliver.morris@ukmusic.org
                                                                                                                                                leading music acts have provided
                                                                                                                                                valuable information to allow us to      For all research enquires contact:
                                                                                                                                                compile these statistics.                Natalie Williams
                                                                                                                                                                                         natalie.williams@ukmusic.org
                                                                                                                                                We are pleased to continue working
                                                                                                                                                                                         This report was designed by
                                                                                                                                                with the Intellectual Property Office
                                                                                                                                                                                         Beatriz Ribeiro at UK Music
                                                                                                                                                (IPO), The Department for Digital,
                                                                                                                                                Culture, Media and Sport (DCMS)          All material copyright © UK Music
                                                                                                                                                and the Office for National Statistics   2018 except where otherwise
                                                                                                                                                (ONS) on this project.                   indicated
                                                                                                                                                                                         UK Music
                                                                                                                                                We are especially greatful to the
                                                                                                                                                                                         Savoy Hill House
                                                                                                                                                ONS for allowing us access to the
                                                                                                                                                                                         7-10 Savoy Hill
                                                                                                                                                Virtual Microdata Lab (VWL) which
                                                                                                                                                                                         London
                                                                                                                                                has enabled us to apply a bespoke
                                                                                                                                                                                         WC2R 0BU
                                                                                                                                                methodology for the calculation of
                                                                                                                                                the music industry’s GVA.                T: 020 3713 8444
                                                                                                                                                                                         Twitter: @UK_Music
                                                                                                                                                                                         Email: info@ukmusic.org
                                                                                                                                                                                         Website: www.ukmusic.org
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