Growth is a defining characteristic of today’s music industry which has expanded into a huge global concern in recent years.
From ticket sales for huge tours and live performances alongside a love for classic sounds, a burgeoning global electronic music industry and music creation apps, a variety of factors have played into the expansion of UK music. Ultimately, it means music fans are able to access tracks from a wider variety of locations, enjoying more emerging artists and sonic styles than ever before.
Music streaming revenue is at the heart of this accessible music world alongside the sophistication of mobile smartphone technology. Combined, this represents an exciting opportunity for music creators to share new music with a global market.
The British music industry accounts for 12 percent of this global market. Meanwhile, data from the International Federation of the Phonographic Industry (IFPI) revealed that the value of the global recorded music industry has more than doubled since 2014, from $14bn (£10.5bn) to $29.6bn, with streaming now accounting for 69 percent of revenue.
These are head-spinning numbers – so what does it mean for those studying a music industry degree such as SAE’s Music Business course? Our blog will explore the music industry ecosystem, the factors shaping it and what future growth might look like for aspiring professionals and artists.
If you want to be part of this success story, then contact our team to learn how a music business course could be a great platform for you to launch your career.
How has the music industry evolved
The music industry has gone through several seismic shifts during the last twenty years. The move from physical formats such as CDs, cassettes and vinyl to digital music has been one of the most disruptive for the sector.
Music streaming has made music more accessible – In 2024 there were just under 200bn audio streams, accounting for nearly 89 percent of recorded consumption. Streaming growth for that year came in at 11 percent, up from 12 percent in 2023 and 8.1 percent in 2022.
Smartphones have also had a huge influence. Statistics suggest that by 2026, 87 percent of all music streams in the UK will come from mobile devices, surpassing desktop and other platforms. The average UK user will spend 112 minutes per day on music streaming services by 2026.
Of course, the Covid pandemic also marked a huge moment for the industry too, decimating the live music industry sector but seeing many more music lovers head online while exposing non-Western markets to more listeners. According to reports, spending on the UK live music sector and associated businesses hit a record £6.1bn in 2023 as a wave of huge acts all took advantage of a post Covid boom and pent-up demand for live, in-person experiences.
How has music streaming changed the UK music?
One of the most significant impacts of streaming platforms has been the democratisation of music access.
Before, purchasing physical copies of albums or singles was the main way of listening to music, but of course this limited access based on geographic location, price, and availability. However, streaming services have eliminated these obstacles with music lovers now able to tap into a rich catalogue of songs no matter where they might be. For self-releasing artists, it’s also given them access to different key markets as long as they have their digital distribution worked out.
However, while this has been kinder for music fans with only so much disposable income, it’s also raised concerns about the royalty distribution rates on streaming services.
Some of the benefits include:
Global access: Fans from all over the world can listen to music from different cultures, genres, and languages without restrictions.
Discovering new sounds: Streaming services use algorithms and playlists like ‘Discover Weekly’ to introduce listeners to new artists, band and styles.
Convenience: Instead of buying individual albums or songs, users can stream an unlimited number of tracks in return for a monthly fee.
This has levelled the playing field for independent and lesser-known British artists, giving them the opportunity to reach global audiences without needing the backing of major record labels.
Where are the main areas of growth for live music and beyond?
The industry growth is global and reaches all regions around the world but particularly in emerging markets.
The top 10 markets now include China, the Republic of Korea, Brazil and Mexico, and the fastest-growing regions in 2024 were the Middle East and North Africa, Latin America and Sub-Saharan Africa.
Moreover, according to a recent paper on ‘Glocalisation’, most countries in the study have seen “an absolute and relative increase in the domestic share of their top 10 songs and artists in 2022”.
In recent years, there is now greater demand for musical sounds and styles of all kinds with innovation highly valued by music fans.
The impact of the UK music industry for more artists
The music industry has a significant global economic impact through job creation, tourism, and the sale of music and merchandise.
Music festivals attract millions of tourists and boost local economies. In 2024, UK music’s live sector saw a record 23.5 million music tourists (both domestic and international) engage with its live business, generating a massive £10bn boost for the UK economy, according to UK Music’s Hometown Glory 2025 report.
Music serves as a cultural export, sharing nations’ identities and values on a global stage. New markets are held in high regard for musical talent with the BPI running its own Music Export Growth Scheme to help provide a platform for new acts looking to make an impact outside the UK. According to the BPI, this cultural exchange is designed to make available grants ranging from £5,000 – £50,000 to UK-registered independent music companies to assist them with marketing campaigns when looking to introduce successful UK music projects overseas. However, there are also challenges for live acts looking to navigate this global landscape with the costs of touring on the rise.
They increased by an average of 35 percent due to higher energy prices and rising supply chain costs. Ditto Music research showed that 84 percent of UK independent artists have not been able to afford the cost of touring in 2025.
The Future of Streaming and the Music Industry’s Global Reach
As streaming continues to dominate the music industry, its influence on how music is produced, consumed, and monetised is expected to grow.
However, ongoing debates about fair compensation for artists from streaming and the sustainability of the current model are likely to lead to further changes in the industry.
Some potential future developments include:
Higher artist royalties: There is increasing pressure on streaming platforms to improve payout rates to artists. If this happens, it could reshape the revenue dynamics of the industry.
Popularity of alternative streaming services: With increasing concerns about where tech companies are using their money, new and alternative streaming services could grow in popularity, including French music provider Qobuz.
More direct artist-fan relationships: With platforms like Patreon and Bandcamp, artists may increasingly turn to direct-to-fan models to supplement income from streaming.
AI and data-driven music creation: As streaming algorithms become more sophisticated, we may see the rise of AI-generated music from producers tailored to individual listening preferences.
Study Music Business at SAE
Studying our leading Music Business course will give you a comprehensive education in labels, publishing, management, touring, distribution, and live events.
You will have the opportunity to collaborate with an exciting student body to record your artists, film music videos and begin to plan your own career in one of the world’s most exciting industries.
