UK Music Streaming Subscription Revenues Increase by 7.8% in 2024

In 2024, the amount spent on music subscriptions by consumers in the UK rose significantly, showing a healthy growth of 7.8% year-on-year (YoY).

These figures come from the latest preliminary data provided by the UK’s Entertainment Retailers’ Association (ERA). The members of ERA include prominent streaming services such as Spotify, Amazon, YouTube, and SoundCloud.

According to the data released by ERA, UK consumers spent a total of GBP £2.018 billion (USD $2.58 billion) on music streaming subscriptions in 2024. This was an increase from GBP £1.870 billion in 2023.

This growth can be represented as a total increase of GBP £146.4 million YoY.

It is important to note that the ERA’s figures reflect retail amounts, meaning they represent what consumers spent directly on subscriptions rather than the wholesale amounts paid to music rights holders. Additionally, these figures do not include revenue generated from ad-supported tiers.

A significant factor contributing to the UK subscription market's financial performance in 2024 was a price increase initiated by one particular streaming service: Spotify.

In April 2024, Spotify announced it would be raising prices for several of its subscription tiers in the UK, which is recognized as the world’s third-largest recorded music market.

Specifically, Spotify raised the price of its Premium Individual plan by GBP £1 per month to £11.99. Additionally, its Duo and Family plans saw increases of GBP £2 each, raising their monthly prices to £16.99 and £19.99, respectively.

This marked Spotify's second price increase in the UK within two years, following a prior adjustment in July 2023 that moved the long-standing £9.99 monthly charge up.

As previously reported, data compiled by the UK’s Competitions and Markets Authority (CMA) showed that, by December 2021, Spotify held over 50% market share in the monthly active users category, which includes both free and premium users of music streaming services.

Additional Revenue Insights

In addition to subscription streaming revenues, ERA’s latest report also includes figures related to physical music sales and downloads. ERA's members comprise UK physical music retailers, including HMV and a network of independent outlets.

In 2024, revenues from physical music sales, including CDs and vinyl, increased 6.2% YoY, totaling GBP £330.1 million (equating to USD $421.9 million).

However, download sales experienced a decline of 3.2% YoY, bringing them down to GBP £41.3 million (or $52.8 million).

Overall, total UK recorded music sales for 2024 — comprising subscription streaming, physical sales, and downloads — reached an impressive GBP £2.390 billion (approximately USD $3.05 billion), reflecting a growth of 7.4% YoY.

This total revenue figure, GBP £2.390 billion, represents an all-time high for the UK recorded music industry, surpassing the previous peak of GBP £2.222 billion recorded in 2001.

Notably, this comparison does not take into consideration the effects of inflation.

When adjusting for inflation, the GBP £2.222 billion figure from 2001 would equate to approximately GBP £4.081 billion at the end of 2024, according to data from the Bank of England.

Future Outlook for the Music Industry

The Chief Executive Officer (CEO) of ERA, Kim Bayley, highlighted that “2024 was a banner year for music, with streaming and vinyl propelling the sector to unprecedented records in both value and volume. This remarkable achievement marks the culmination of music's revival, which has seen sales more than double since reaching their lowest point in 2013. We can confidently state — music is back.”

Moreover, the combined sales across the UK music, video, and games markets examined by ERA surpassed £12 billion for the first time in 2024, marking the twelfth consecutive year of growth and the eighth successive record high.

This £12.009 billion total in UK entertainment sales represents over 50% growth compared to the total recorded in 2019, the last year before the pandemic.

The Chair of ERA, Linda Walker, commented, “We are witnessing a fundamental shift in the dynamics of the entertainment business. Digital services and retailers have become the driving forces behind market growth.”

“For many years, new release activity was primarily responsible for revenue generation. In 2024, however, subscription sales have emerged as an increasingly significant factor.”

All currency conversions from GBP to USD are based on the annual average exchange rate for 2024.

streaming, revenue, subscription