More UK artists reap the rewards of streaming with 1,800 artists achieving more than 10 million streams in the UK alone in the past 12 months according to data compiled by the BPI. This is 72% more than the total of 1,048 artists who achieved the equivalent 10,000 album sales in the CD, LP and download market of 2007. Streaming has also made the market more ‘democratic’ – the top 10 artists dominated less of streaming (5%) in 2020 than was the case for CD sales (13%) in 2005.
Global streaming data show that the top 1,500 artists in the UK generate on average nine times as many streams outside the UK as they do at home. While consumption of British rap and hip hop, along with some rock, remains primarily UK-focused, many British artists are achieving exceptional international success, in particular in genres such as pop, dance and electronica, with 300 British artists now achieving 100 million global streams or more annually. Around 400 artists, drawn from rock and pop’s mainstream but increasingly also from rap, hip hop, dance and indie, were streamed more than 50m times in the UK.
British music is the third-largest market in the world and the second biggest exporter of music, surpassed only by the US. Artists are receiving a higher share of revenues nowadays than they did in the CD era. Artist royalty rates are typically higher in streaming, commonly ranging between 20-30% – compared to CD era rates more typically at rates of 15%-20%.
On average, based on a typical £9.99 subscription to a streaming service, labels receive gross revenues of around £4.33, of which artists receive £1.33. Of the label’s remaining share of £3.00, costs represent £2.49 (including investment into artists such as A&R and global marketing) – this leaves a label margin of £0.51. The remaining £5.67 is received by: the exchequer (VAT); the streaming service; and publishers and songwriters.
Streaming is only one component of an artist’s income with global income/exports, live (once active again), physical sales on CD & vinyl, royalties from broadcast and being played in public, merchandise, sync, and licensing also contributing.
