Following a BPI report released earlier this week which put the recording industry's year-on-year growth at 2.3% in 2009, PRS For Music yesterday announced that the music industry as a whole saw revenues rise by 4.7% last year to £3.9 billion.

Slightly different to the BPI's figures, PRS For Music said that recorded music stayed flat at £1.36 billion, halting five years of decline, while the live sector saw revenues rise 9.4% year-on-year to £1.54 billion, edging its lead on recordings slightly further, while B2B revenues - public performance royalties, licensing of music services, advertising and sponsorship - also grew 4.4% to £967 million.

The BPI's report put total revenues for record labels at £1.1 billion in 2009, up 2.3% on the previous year, with income from outside traditional music sales up by 6.6% to £193.5 million, the third annual rise in a row.

The biggest increase, it said, came from sync deals with TV, film, advertising and games companies, which saw a growth in income of 19.6% to £25.2 million. Meanwhile, more than £58 million came from multi-rights 360 deals with artists, which see labels take a cut of artists' other income streams, a 16.7% increase on the previous year. Broadcast and public performance licensing was the biggest non-sale winner though, with £72.1 million brought in through the PPL in 2009.

Like the BPI, top PRS economic man Will Page, speaking at the report's launch, put the rise down to music companies finding new ways to make money. However, he questioned whether the UK live industry may have now peaked, particularly as its US counterpart begins to struggle. However, in terms of advertising and sponsorship, he admitted "live is where it's at". He also said that a growth of nearly 5% was a "phenomenal feat" for the UK music industry as the wider economy hit a major recession.

On this subject, the conclusion to the report, written by UK Music CEO Feargal Sharkey said:

"As the values of market commodities are eroded, the value of service industries must increase to keep the UK growing. In this context, our creative industries clearly have a role to play. UK music, film, television, computer games and books are all a recognised success on the world stage. However, there needs to be an appetite to support such creative ventures, and - especially post credit crunch - this is not coming from the conventional banking sector, with its preference for the familiarities of low risk".

Sharkey finished:

"This must change, and I believe we have a clear case for policy-makers. Music has and always will be one of the UK's best tourist magnets and can offer a very high return on minimal investment. Our challenge going forward is to provide the comprehensive data, analysis and support that can help them allocate funds more effectively".

Story CMU Network