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At least half a dozen distributors and record labels are frustrated with the streaming service Napster due to late royalty payments, executives tell Billboard. In some cases, rights holders say Napster is a few months behind schedule; in others, the lag on payments is well over a year.
Napster, despite its history as a pirate-disruptor to the recorded music business around the turn of the century, has long operated as a licensed streaming service, albeit a small one. But “for years, they have cited fundraising struggles as an excuse for delayed royalty payments,” according to one executive at a distributor who spoke on the condition of anonymity.
Napster’s CEO, Jon Vlassopulos, declined to comment.
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Napster is not the first streamer accused of falling behind on payouts. A lawsuit against TIDAL in 2021 revealed that the platform had $127 million in liabilities, mostly in the form of unpaid streaming fees to record labels. TIDAL CEO Jesse Dorogusker told Billboard in 2023 that the payment situation had been remedied following TIDAL’s acquisition by Block.
More recently, labels and distributors have said they are struggling to get timely payments from Boomplay, a streaming service with a large user base in Africa. In December, Sony Music pulled its catalog from the platform.
At the end of 2023, Boomplay said it had 98 million monthly active users across Africa. Napster is considerably smaller: It had a little more than 1 million monthly active users at the end of 2020, according to Music Ally.
Rights holders acknowledged to Billboard that the royalties they had received in the past from Napster account for just a small fraction — often less than 1% — of their overall streaming income. “What we earn from it as a distributor isn’t that much,” says an executive at another distribution company that is missing many months of Napster payments.
“But,” he continues, “in terms of payouts to the artists and the labels who we represent, it can be a solid sum of money.” $100,000, for example, may be a drop in the bucket for a volume distributor. However, that money can make a meaningful difference for a small indie label.
Napster launched in June 1999 as a file-sharing service that allowed users to download tracks for free. It was soon battling copyright infringement lawsuits from various heavy-hitters, including Metallica, Dr. Dre and the RIAA. “Napster is not developing a business around legitimate MP3 music files, but has chosen to build its business on large-scale piracy,” the RIAA wrote in a suit filed in 1999.
This first version of Napster shut down in 2001. The following year, Bertelsmann announced that it would acquire the service and turn it into a licensed listening platform. But a judge later blocked the sale.
In the years since, Napster has bounced from one home to another. It was first acquired by Roxio and then by Best Buy for $121 million in 2008. Three years later, Napster was scooped up by Rhapsody, an early music streaming service. Rhapsody subsequently rebranded itself as Napster in 2016.
In 2020, the virtual reality concert app MelodyVR bought Napster for $70 million. The company changed hands yet again in 2022, with Hivemind Capital Partners and cryptocurrency company Algorand becoming the new owners.
Vlassopulos took over as Napster’s CEO in the fall of 2022 following a stint as global head of music at Roblox. Two decades before, he had worked at Bertelsmann and been part of the team that put together the deal for Napster — only to have it scuttled months later. “It always stayed with me: What if we could have finished what we started?” Vlassopulos explained in an interview last year.
But first, he had to work on “cleaning up the Napster business.” “The company had been around for 20 years, and so now we’ve modernized,” Vlassopulos added. “We’re right at break even, and we’re kind of in a process now to raise material funds, or the company is maybe looking to roll us up into something bigger.”
Despite this progress, some rights holders told Billboard that they were considering pulling their catalogs from Napster, or no longer delivering new releases to the platform.
When labels and distributors are not receiving payments from streaming services, taking their catalogs off platforms is one of their only options. The other is to take legal action against the streamer.
But litigation is costly and time-consuming, which means rights holders are usually stuck sending follow-up emails over and over again. This hasn’t worked for several companies trying to get money owed to them by Napster, though. “Not only have they failed to pay royalties,” says the first distribution executive, “but they have also been unresponsive when we’ve attempted to resolve these matters.”
Though making and distributing music has become easier than ever, the number of tracks being uploaded to digital service providers has fallen — not increased — in the last two years.
In the first quarter of 2023, an average of 120,000 tracks were being uploaded to DSPs each day, up from 93,400 in 2022, according to Luminate. That number dropped to 103,500 for the full year of 2023 and fell further to 99,000 last year, according to the company’s recently released 2024 year-end report. Normally, a decrease in the amount of new music tracked by Luminate wouldn’t merit much attention. But a 4% annual decline in new tracks is notable when today’s creators have an unprecedented number of tools to make music — including easy-to-use digital audio workstations like BandLab and generative artificial intelligence apps such as Suno — and can tap into global distribution.
Music professionals Billboard spoke to for this story pointed to numerous possible explanations for the drop in new tracks, with anti-fraud measures being the most widely cited reason for the decline. Bad actors are known to upload large numbers of tracks through do-it-yourself distributors before hacking into users’ streaming accounts to stream the songs. Erik Söderblom, chief product officer for music distributor Amuse, cites Spotify’s policy changes announced in 2023 to discourage labels and distributors from uploading tracks used to inflate streaming activity for the drop. “It has been a successful way for both of them as a DSP and us as a distributor to discourage fraudulent actors who abuse the system by releasing and monetizing large volumes of audio files through artificial streams,” he says.
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Beatdapp, which can identify when users’ accounts are hijacked and turned into bot farms that unknowingly stream music, has seen fraud rates decrease on the platforms it works with, says CEO Morgan Hayduk. While a small 4% decline in the scheme of millions of new tracks suggests there’s still ample music for these bot farms to illegally stream, Hayduk believes the financial penalties are having their intended effect. “I do think the DIY space is taking their end more seriously and trying not to be a conduit for this,” he says.
French streaming service Deezer introduced an “artist-centric” royalty payout scheme in 2023 to combat fraud and prioritize professional music over “functional” music such as background noise and nature sounds. But given Spotify’s far larger user base, the platform’s anti-fraud measures get more credit for creating outcomes favorable to artists and record labels. For instance, in 2023, Spotify began levying penalties on music distributors and labels when fraudulent tracks they uploaded had been detected. As a result, experts tell Billboard, better policing at the source of the problem could have resulted in distributors being wary of working with some creators.
While the anti-fraud measures may have had the intended effect and prevented some tracks from being uploaded, DistroKid, another self-serve distributor of independent artists, actually sent more tracks to DSPs in 2024 than the prior year. “There wasn’t a decrease in tracks uploaded to streaming services through DistroKid in 2024,” a company spokesperson said in a statement to Billboard. “The average number of tracks uploaded to streaming services each day steadily increased throughout the year.”
As for other, lesser factors, a likely candidate is Spotify’s 2023 decision to set a minimum threshold for royalty payouts at 1,000 streams. The policy received mixed reactions. Some critics called the threshold a penalty for developing artists who rely on royalties to help build their careers. But cutting off payments to the outer reaches of the long tail put Spotify in sync with major labels’ recent push for royalty accounting schemes that reward professional artists at the expense of, as Universal Music Group CEO Lucian Grainge put it in 2023, “merchants of garbage.”
Ending the practice of cutting tiny royalty checks may help DSPs’ goal of prioritizing professional musicians over a sea of unwanted content, but “may also dishearten early-stage artists who struggle to grow their project,” says Söderblom. As a result, fewer uploads would mean fewer new tracks could enter Luminate’s database. Will Page, author of Pivot: Eight Principles for Transforming Your Business, believes that the payout threshold likely had “a material effect on what Luminate gets to count.” After Spotify set a threshold for payouts at 1,000 streams, an artist would experience diminishing returns from uploading more unpopular music. According to Luminate, 93.2 million of the 202.2 million tracks in its database were streamed fewer than 10 times. Page, Spotify’s former chief economist, estimates that 99% of the 99,000 new tracks in 2024 made the recording artist less than $100 in royalties last year.
Anti-fraud measures and artist-centric royalty schemes may not account for all of the decline, though. Another factor could be a natural ebb in the supply of music. Söderblom sees 2022 as “a great year for DIY” because many artists had additional time to work on new music due to the COVID-19 pandemic. “The combination of accessible music production and distribution tools and a more or less global lockdown led to a huge influx of releases,” he says. “As the world returns to normal, it seems natural to see the volume of new uploads decline.” The same could be true of video creators. Last week, MIDiA Research declared that “the pandemic-induced content creation boom has peaked” after time spent creating content such as YouTube videos dropped in the second quarter of 2024 — marking the first decline since 2021.
Similarly, the 120,000 tracks uploaded daily in 2022 may have marked a peak of musicians uploading their back catalogs to distributors. MIDiA Research’s Mark Mulligan has surveyed amateur and semi-professional creators for five years. “A lot of them are in their 40s and 50s, and probably a lot are people who have been playing in bar bands and whatever else,” says Mulligan. “And they say, ‘Oh, we’ve got these demos. Let’s put them on Spotify.’ And so, they had a lot of back catalog that hadn’t been digitized before to put up there.” Those tracks weren’t necessarily new, but they were new to DIY distributors and streaming platforms. Once the backlog runs out, these artists may not have any other recordings to distribute.
Yet another explanation is the rise of social media as a destination for new music. Music streaming platforms and DIY distribution have leveled the playing field and given every artist an opportunity to reach listeners around the world. Still, many artists have realized they aren’t the next Taylor Swift and can’t get much traction at services such as Spotify and Apple Music. Streaming can work wonders for big artists, but the promise of democratization “has lost a lot of sheen,” says Mulligan. Small artists who don’t attract a crowd at Spotify can use social media or user-generated platforms such as Audiomack to connect with listeners. “They would rather have a small fan base who they can interact with than a large audience they can’t interact with,” he says. “Add that with the remuneration issue and it’s a much less compelling premise to go on streaming now than it was three, four years ago.”
If Mulligan’s hypothesis is true, the artist-centric approach adopted by Spotify, Deezer and others could end up hurting its biggest proponents: the major labels. Streaming platforms have essentially told long-tail artists, “We’re not going to stop you from coming in, but you’re not really welcome,” says Mulligan, which he thinks could have unintended consequences somewhere down the road. “Stop a generation of artists coming in,” he says, “and there’s a really good risk that you’ll inadvertently stop a generation of fans coming in if those artists go elsewhere to build their fan bases.”
In fall 2023, Deezer announced it was adopting an “artist-centric” royalty model with Universal Music Group (UMG) in an effort to better compensate acts with significant followings and the rightsholders who own their recordings. That move, intended to tackle fraud and reduce royalties flowing to what is essentially noise and “functional music” was intended to rebalance a streaming model that some major players believe needs reform. Other major labels followed, as did Spotify, which made different adjustments to its royalty model toward the same end.
On Wednesday (Jan. 15), Deezer and the French PRO SACEM announced a deal to compensate publishing rightsholders the same way. “We started a year and a half ago with UMG and then the other majors,” said Deezer CEO Alexis Lanternier. “And now we’re doing it on the publishing side.”
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SACEM’s interest in this idea goes back to an analysis of the potential effects of artist-centric royalty payouts that the PRO conducted last year. “The first thing I wanted was to remove noise from the revenue, especially at a time when dilution is an issue” said SACEM CEO Cécile Rap-Veber, “The second thing is that it helps prevent fraud.”
While Deezer will not remove any music from its platform as a result of this agreement, the service will either demonetize or essentially allocate less royalties to some tracks, by boosting the royalties earned by others. The change, which will take effect soon, could help labels and services better prepare for the age of AI, when music executives worry that online services will be flooded by unpopular, low-value music that cuts into their business with sheer scale. “With AI coming,” Rap-Veber says, “we’re afraid that human creation might be affected.”
Deezer’s specific plans are more ambitious than what it did on the recording side. Like other artist-centric models, artists get a royalty boost for hitting a measure of popularity — in this case, double royalties for songs that are actively searched out or those by artists with 1,000 streams a month from 500 different subscribers.
More interesting, the service will impose what it calls a “user centric cap” that will limit how much the listening choices of any individual subscriber can affect royalty payouts, which will also make fraud more difficult and less efficient. Also, Deezer will completely exclude from the royalty pool tracks that consist of noise and “functional sounds,” such as rain on a roof; instead, Deezer will recommend similar music that it owns, which will not count for payout purposes and thus not take royalties from other rightsholders. (Some of these tracks might not even be considered copyrighted works under EU law, at least on the publishing side. While recording the sound of rain on a roof might arguably involve creative choices, there is no composer in the sense of copyright law.) Deezer will also remove tracks that have not been streamed in a year.
Shaboozey’s “A Bar Song (Tipsy)” was the most streamed, downloaded and highest grossing song of 2024 in the United States, according to a Billboard review of Luminate’s annual report published on Wednesday (Jan. 15).
The anthemic hip-hop-infused country song generated $6.59 million from digital song sales and on-demand audio streams in the United States for the year spanning from Dec. 29, 2023 to Jan. 2, 2025, having spent a historic 19 weeks in the No. 1 spot on Billboard’s Hot 100.
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The top 10 most digitally consumed songs of 2024 as identified by Luminate generated a combined $53.4 million from on-demand audio streams, such as when the song is played on Spotify, and digital song sales, like when a digital download is purchased through Apple’s music store.
Another country crossover hit, Post Malone’s “I Had Some Help” featuring Morgan Wallen, took the No. 2 spot on Luminate’s list, and generated $5.76 million from sales and on-demand audio streams, while Benson Boone’s “Beautiful Things” came in third on that list, and generated $5.65 million. Those royalties are paid out to an artist’s record label and music publisher; Billboard was not able to determine the artists’ share of those earnings.
The remainder of the top 10 most digitally consumed songs were Teddy Swims’ “Lose Control” which earned $5.57 million; Kendrick Lamar’s “Not Like Us,” which earned $5.63 million; Sabrina Carpenter’s “Espresso,” which earned $5.2 million; Zach Bryan’s 2023 release featuring Kacey Musgraves, “I Remember Everything,” which generated $5.03 million; Tommy Richman’s “Million Dollar Baby,” which earned $4.99 million; Billie Eilish’s “BIRDS OF A FEATHER,” which earned $4.53 million; and Hozier’s “Too Sweet,” which generated $4.39 million.
Lamar’s “Not Like Us” ranked fifth, behind Swims’ “Lose Control,” on the list of most streamed and downloaded songs. However, “Not Like Us” generated slightly more money than “Lose Control” — “Not Like Us” netted $5.63 million compared to $5.57 million for “Lose Control” — because it was streamed 37.7 million more times. While “Lose Control” had more digital downloads, and a single digital download pays out more than a single stream, digital sales for both songs only totaled 430,000.
As the music industry’s leading data provider, Luminate tracks consumption data from more than 500 retailers, streaming and radio companies, among others. This top 10 list from Luminate’s report focused on digital song sales and on-demand audio streams because around 90% of music consumption activity comes from digital formats in the U.S. Luminate stripped out video streams from this year’s chart because of a change in how one company provided video data in 2024.
These 10 songs made an additional $30.3 million from video streams, programmed streams, such as a play on satellite radio, and radio airplay spins in the U.S. Including that revenue, Shaboozey’s “A Bar Song” was still the top money-making hit with $10.74 million, but Teddy Swims’ “Lose Control” came in second with $10.22 million, largely because of its success on radio and programmed streams. The songs would have also made additional revenue from sales and streams around the world, metrics that are not included in Luminate’s ranking.
Some songs did particularly well on video. Lamar’s Drake diss track “Not Like Us” had more than 216 million on-demand video streams in the U.S. last year, which generated over $1 million from master recording and publishing rights, Billboard estimates.
Here is Luminate’s full list of the top 10 songs of 2024 ranked by sales and streaming-equivalent units based on on-demand audio streams with Billboard‘s estimates on how much money each song generated from those categories.
All products and services featured are independently chosen by editors. However, Billboard may receive a commission on orders placed through its retail links, and the retailer may receive certain auditable data for accounting purposes.
A mere four months after the arrest of Sean “Diddy” Combs, the first of many announced documentaries surrounding his federal racketeering and sex trafficking allegations has landed. Following a shocking trailer released two weeks ago, Diddy: The Making of a Bad Boy documentary is here and now available to stream online exclusively on Peacock.
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The 90-minute documentary tracks the hip-hop mogul, from his early life struggles to his rise to fame within the music industry. There are several appearances throughout the doc from members in Diddy’s inner circle including former employees, childhood friends, bodyguards, and even a Making The Band contestant, all recounting their tales of dealing with Combs throughout his career. However, the most notable appearance is from singer Al B. Sure!, who details accusations regarding domestic abuse and death of Kim Porter, his and Combs late former partner.
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This is the first documentary to be released regarding Diddy’s sexual abuse allegations, but it won’t be the last. 50 Cent has already publicly announced that his G-Unit film division is producing their own doc surrounding Puff. Until then, check out how you can watch the Diddy: The Making of a Bad Boy below.
How to Stream ‘The Making of a Bad Boy’ Diddy Documentary
Diddy: The Making of a Bad Boy documentary premiered on Jan. 14, exclusively streaming on Peacock. Peacock subscribers can stream the new Diddy documentary online for free. Not subscribed? For just $7.99/month, the streaming service offers access to live sports, original TV programming, movies and specials, including the Diddy doc. Sign up here or below.
Peacock lets you watch the Diddy documentary online through your phone, computer, tablet or smart TV (via the Peacock app). This special is not airing on TV so the only place to stream the Diddy Bad Boy documentary online is through Peacock.
Watch the trailer for Diddy: The Making of a Bad Boy below.
All products and services featured are independently chosen by editors. However, Billboard may receive a commission on orders placed through its retail links, and the retailer may receive certain auditable data for accounting purposes.
Goosebumps: The Vanishing, the second spooky installment in the Disney+ anthology series has finally arrived. Premiering on Jan. 10, fans can stream all episodes exclusively on Disney+ and Hulu.
Inspired by R.L. Stine’s worldwide best-selling books, the new season follows twins Devin and Cece, who are sent to spend a summer in New York with their divorced dad, scientist Anthony Brewer. The pair must band together with a few new friends to save their Brooklyn neighborhood from a long-dormant threat. Because it’s an anthology series, the new season welcomes in a brand-new cast with Friends star David Schwimmer leading the pack.
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For fans of the books, Goosebumps: The Vanishing is based on the author’s second entry in the horror novel series, Stay Out of the Basement. If you haven’t read the books, or looking to catch up on a few classic spooky stories, the Goosebumps box set is a must-have for any fan. Featuring 20 popular novels in the series, relive fan favorites including The Haunted Mask, One Day at Horrorland and Night of the Living Dummy.
‘Goosebumps’ 20-Book Box Set
For more Goosebumps thrills, the 2015 film and its Haunted Halloween sequel are more lighthearted entries into the series. Starring Jack Black, the pair of movies are standalone stories that aren’t based on any singular book, but rather celebrates the entire franchise as a whole. The films feature several classic monsters, ghouls and ghosts from the novels including Slappy the dummy and the abominable snowman.
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Here’s How to Watch ‘Goosebumps: The Vanishing’
Goosebumps: The Vanishing premiered on Jan. 10 exclusively on Disney+ and Hulu. If you’re already a member of the streaming service, just sign on to gain access to the series. For newcomers, Disney+ offers a variety of subscription options starting at just $9.99/month, which grants you access to the entire Disney library, including the Elton John: Never Too Late documentary, original and exclusive content from Marvel, Star Wars, Pixar and more.
Ditch the ads with Disney+’s premium plan for $15.99/month, or consume even more content with a mix of bundle options that include Hulu and ESPN+ starting at $10.99/month. If you’re interested in live TV, you can even bundle with Hulu + Live TV. Sign up for the bundle plan here or below.
Get prepared for your next horror binge by checking out the trailer for Goosebumps: The Vanishing below.
Spotify’s less expensive subscription plans that exclude audiobook listening have been adopted by about 14% of its U.S. subscribers, according to a new Morgan Stanley survey.
In June, Spotify allowed existing subscribers to opt into “basic” plans without free audiobook listening in exchange for a slightly lower price. The basic plans arose from Spotify’s decision to bundle 15 hours per month of audiobook streaming with the standard premium subscription plans. Around the same time, the company increased the monthly premium subscription fee in the U.S. to $11.99 for individual plans and $19.99 for family plans that allow up to six people per account. The basic tiers provide access to music and podcasts while allowing subscribers to opt out of the audiobook offering.
So far, not many Spotify subscribers are opting for the music- and podcast-only tier. Morgan Stanley’s 11th annual Audio Entertainment Survey found that in 2024, 17% of U.S. individual premium subscribers opted into the less expensive basic plan, while 10% of family plan subscribers chose the less expensive basic tier. While the premium family plan’s percentage of all subscribers dropped only slightly to 25% from 26%, the premium individual plan’s share of subscribers fell to 48% in 2024 from 61% in 2023.
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The basic tiers’ light adoption rates help shed some light on the financial impact of Spotify’s decision to pay a lower mechanical royalty allowed for bundled digital services. In May, Billboard estimated that Spotify would pay $150 million less to songwriters, publishers and PROs in 2024 than they would have if Spotify had not bundled music and podcasts with audiobooks in the premium plans. (That estimate was calculated before Spotify raised premium rates again in June and gave subscribers the option to pay a lower rate for a plan that excludes audiobooks.) Less than a fifth of subscribers have opted for the basic plan, meaning the lower royalty rate of the music-audiobook bundle still applies to the vast majority of subscriptions.
The cost of the premium tier appears to have had a slight impact on consumer sentiment, however. The introduction of the basic plan and the second price increase in as many years coincided with a decline in Spotify’s user satisfaction. The survey found that the percentage of Spotify users who are “very satisfied” with the service slipped to 57% in 2024 from 61% in 2023, while “somewhat satisfied” users increased to 29% from 26%. Among streaming services, YouTube Premium was No. 1 in user satisfaction with 87% of respondents either “very satisfied” or “somewhat satisfied” with the premium video platform. Spotify, last year’s No. 1, was No. 2, followed by SiriusXM at No. 3, YouTube Music at No. 4 and YouTube at No. 5. Apple Music had the biggest decline, dropping from No. 2 in 2023 to No. 7 in 2024. Tidal ranked last in user satisfaction with 80% of users either “satisfied” or “somewhat satisfied” with the service.
Spotify fared well among young consumers. Overall, the platform accounted for 11% of listening time, third behind AM/FM radio’s 25% and SiriusXM’s 12%. But amongst the 18-29 age group, Spotify dominated with 19% of listening time, well ahead of YouTube and AM/FM radio’s 13% shares a piece and SiriusXM and Apple Music’s 9% shares a piece.
Spotify ranked behind only AM/FM radio in terms of U.S. active users. The survey puts U.S. AM/FM listenership at 316 million, about triple Spotify’s 106 million (including both subscribers and free users). Pandora ranked No. 3 with 44 million active users, ahead of Apple Music’s 41 million and SiriusXM’s 38 million. Amazon Music was estimated to have 13 million active users.
LONDON — Hit albums by Taylor Swift, The Weeknd and Sabrina Carpenter helped music sales in the United Kingdom reach a record high in 2024, exceeding the peak of the CD era in both revenue and volume for the first time, according to year-end figures from the Digital Entertainment and Retail Association (ERA).
Overall music spending in the U.K. grew to £ 2.4 billion ($3 billion) last year, a rise of 7.4% on 2023 and comfortably surpassing the previous high of £2.2 billion ($2.7 billion at today’s currency rates) back in 2001 when Dido, Robbie Williams and David Gray were topping the British album charts.
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Driving the growth was a 7.8% year-on-year rise in paid-for streaming revenues, which climbed to just over £2 billion ($2.5 billion). Vinyl sales were up 10.5% to £196 million ($245 million), while CD sales were more-or-less flat with 2023 — when revenues increased for the first time in two decades — at £126 million ($157 million). Download sales fell 3.2% to £41 million ($51 million).
The biggest selling album in the U.K. last year was Taylor’s all-conquering The Tortured Poets Department with just under 784,000 equivalent sales, including almost 112,000 vinyl purchases, which also made it 2024’s biggest-selling vinyl album.
Behind Swift in the year-end U.K. album charts was The Weeknd’s The Highlights, followed by Carpenter’s sixth studio set Short N’ Sweet. Noah Kahan’s “Stick Season” was the year’s number one single, topping the British charts for seven weeks and selling 1.9 million equivalent units, the London-based organization reported Wednesday (Jan. 8).
Streaming now makes up 88.8% of music sales in the United Kingdom, a marginal 1.1% rise on 2023’s figure and more than double streaming’s share of the U.K. market six years ago, according to labels trade body BPI, which published its preliminary year-end listening figures last week.
BPI reports that just under 200 billion music tracks were streamed in the U.K. last year, up 11% on 2023’s total, with the equivalent of 201 million albums consumed across streaming, CD and vinyl sales, a year-on-year rise of 9.7%. Streaming alone generated the equivalent of 178 million album sales in 2024, says ERA.
ERA and BPI both use Official Charts Company sales data as the basis for their reporting, although the two organizations take different approaches to measuring the vitality of the recorded music business. ERA’s figures are based on retail spending in the U.K. alongside information provided by streaming services and label trade income, whereas BPI’s analysis measures music consumption levels. Both trade groups will publish their full annual reports later in the year.
The historic low point for the U.K. music industry came in 2013 when rampant piracy and a fast-eroding physical market saw sales fall to just over £1 billion (£1.2 billion in today’s currency). Since then, sales have more than doubled.
“2024 was a banner year for music, with streaming and vinyl taking the sector to all-time-high records in both value and volume,” said ERA CEO Kim Bayley in a statement. She called last year’s retail sales figures “the stunning culmination of music’s comeback” and triumphantly declared: “We can now say definitively – music is back.”
According to ERA, combined physical sales totaled £330 million ($412 million) in the U.K. in 2024, up 6.2% on the previous 12 months, with CD and vinyl sales accounting for nearly 14% of music revenues. The benefits of such a “mixed physical-digital ecology” is key to the music’s industry’s revival, said Bayley.
“We continue to believe that digital and physical channels are complementary and vital for the health of the entertainment market overall,” she said.
Overall, revenues across the U.K. entertainment market – comprising of music, video and games retail sales – were up 2.3% on 2023’s total to a record high of £12 billion ($14.9 billion), marking the 12th consecutive year of growth and an eighth successive all-time-high.
Of the three sectors, the growth of recorded music sales outpaced both video (comprising of video-on-demand subscription services such as Netflix, Amazon Prime Video, and DVD sales) and games, but music remains the smallest of the three entertainment industries in revenue terms.
Video was the largest sector with revenues growing 6.9% year-on-year to £5 billion. Games sales totaled £4.6 billion, down 4.4% on 2023 but still nearly twice as large as the recorded music business.
ERA has been reporting on the U.K. entertainment industries since 1999 when music, video and games sales totaled £4.1 billion ($5.1 billion).
The Avicii catalog experienced a significant streaming surge following the release of a new documentary about the late artist. In the wake of the Dec. 31 release of I’m Tim on Netflix, global on-demand streams of the Swedish producer’s catalog increased by 63.9%, according to Luminate. The artist’s catalog had a total of 26.4 million […]
LONDON — Proposed changes to U.K. copyright law that would allow tech companies to freely use songs for AI training without permission threaten to place the country’s status as a “world music power” at risk, record labels trade body BPI has warned.
In 2024, hit records by Charli XCX, Sabrina Carpenter, Coldplay and Taylor Swift helped lift the United Kingdom’s streaming market to a record high with just under 200 billion music tracks streamed across the 12 months, up 11% year-on-year, according to year-end figures released Tuesday (Dec. 31) by BPI.
Overall recorded music consumption across streaming and physical album sales rose by a tenth (9.7%) on 2023’s total to 201 million equivalent albums, marking a decade of uninterrupted growth, reports the organization, which represents over 500 independent record labels, as well as the U.K. arms of the three majors: Universal Music Group, Sony Music Entertainment and Warner Music Group.
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However, the success of the U.K. music business is being challenged on multiple fronts, including intensifying competition from other global markets and proposed regulations around the use of artificial intelligence (AI), says BPI.
The proposed AI guidelines were announced by the British government two weeks ago (Dec. 17) as part of a 10-week consultation on how copyright-protected content, such as music, can lawfully be used by tech companies to train generative AI models. Among them is a controversial new data mining exception that would allow developers to use copyrighted songs for AI training, including commercial purposes, but only in instances where rights holders have not reserved their rights.
BPI chief executive Jo Twist said the proposed opt out mechanism was the “wrong way to realise the exciting potential of AI” and places the U.K.’s music and creative industries at risk by allowing “international tech giants to train AI models on artists’ work without payment or permission.”
“The U.K. remains a world music power, but this status cannot be taken for granted,” said Twist in a statement accompanying Tuesday’s year-end figures. She said that in order to continue to thrive, the U.K. music business needs “a supportive policy environment that puts the focus on human artistry and enables continued investment in the next generation of British talent.”
Of the current generation, more than 20 British groups and solo acts topped the U.K. albums chart in 2024, although Charli XCX and Coldplay were the only homegrown artists in the year’s top 10 best-selling artist albums list, occupying the eighth and ninth positions with Brat and Moon Music, respectively. Veteran British American rock band Fleetwood Mac had the year’s seventh most popular album with their compilation 50 Years – Don’t Stop.
Topping the year-end albums list was Taylor Swift’s The Tortured Poets Department, which has sold over 783,000 equivalent units since its release in April – the most for any artist release in a calendar year since 2017, reports BPI. The Tortured Poets Department was one of four albums by Swift to feature among the year’s 20 biggest titles alongside 1989 (Taylor’s Version), Lover and Folklore.
In total, female artists accounted for six of the top 10 and half of the 20 biggest selling artist albums in the U.K. last year with hit releases by Sabrina Carpenter, Billie Eilish, Chappell Roan and Olivia Rodrigo helping make it a landmark year for women.
Female artists also spent an unprecedented 34 weeks at No. 1 on the United Kingdom’s official singles chart, largely driven by Carpenter, who spent 21 weeks at the top with her three hit singles: “Espresso, “Please Please Please” and “Taste.” The best-selling single in the U.K. last year was Noah Kahan‘s “Stick Season,” which topped the U.K. charts for seven weeks, followed by Benson Boone‘s “Beautiful Things.”
Vinyl helps physical album sales return to growth
In terms of formats, streaming now makes up 88.8% of music sales in the United Kingdom, a marginal 1.1% rise on 2023’s figure and more than double streaming’s share of the U.K. market six years ago, reports BPI.
Meanwhile, physical sales experienced year-on-year growth for the first time since 1994 with vinyl and CD album purchases up 1.4% to 17.4 million units. Driving the resurgence in physical formats was a 17th consecutive annual rise in vinyl album sales which grew by just over 9% to 6.7 million units, marking a three-decade high.
The year’s most popular vinyl album was Swift’s The Tortured Poets Department, which sold more than 111,000 vinyl copies, followed by a 30th anniversary reissue of Oasis‘ debut Definitely Maybe. Other top-selling vinyl titles included Eilish’s Hit Me Hard And Soft, Fontaines D.C.‘ Romance, The Cure‘s Songs Of A Lost World and Charli XCX’s Brat.
CD sales fell 2.9% year-on-year to 10.5 million units, representing a significant slowdown on the 19% drop recorded in 2022 and the almost 7% slide in sales experienced in 2023. Digital album sales dropped almost 6% to 3.3 million units.
BPI’s preliminary year-end report doesn’t include financial sales data. Instead, it uses Official Charts Company data to measure U.K. music consumption in terms of volume. The London-based organization will publish its full year-end report, including recorded music revenues, later this year.
The U.K. is the world’s third-biggest recorded music market behind the U.S. and Japan with sales of $1.9 billion in 2023, according to IFPI. It is also the second-largest exporter of recorded music worldwide behind the U.S.
Tougher competition from other international markets, including Latin America and fast-growing countries like South Korea, has seen the U.K.’s share of the global recorded music market shrink over the past decade, however.
In 2015, artists from the United Kingdom cumulatively accounted for 17% of global music streams, according to BPI export figures. That figure now stands at 10% with U.K. artists accounting for just nine of the top 40 tracks streamed in the country last year – the highest being “Stargazing” by Myles Smith at number 12.
“From Coldplay, and Charli XCX, to The Last Dinner Party, and Myles Smith, there were plenty of examples of U.K. music success stories in 2024. But there are also rising challenges for domestic talent in a rapidly changing and hyper-competitive global music economy,” said BPI’s Jo Twist.
“By meeting the growing global challenge head-on, tackling challenges around AI, copyright and streaming fraud, and encouraging consumers towards viable models, like paid streaming subscriptions, we can help to ensure that the value of British music is protected and that our industry can continue to grow and flourish at home and around the world,” she said.
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Music Business Year In Review