Sound Recording & Music Publishing in the UK Industry Market Research Report Now Updated by IBISWorld

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There are two distinct businesses within the UK Sound Recording & Music Publishing industry: music publishers, which earn about 78% of revenue; and sound recording studios, which draw the other 22%. The industry is in decline as years of falling record sales have eaten into music publishers' royalty streams and weakened demand for sound recording studios and therefore the industry is projected to increase very marginally in size over the next five years to 2017-18.

IBISWorld industry market research
Falling record sales continue to eat into industry revenue

There are two distinct businesses within the UK Sound Recording & Music Publishing industry: music publishers, which earn about 78% of revenue; and sound recording studios, which draw the other 22%. According to IBISWorld industry analyst Andrew Johnson, “the industry is in decline as years of falling record sales have eaten into music publishers' royalty streams and weakened demand for sound recording studios”.

Demand for sound recording studios has weakened as the record companies have reduced their investment in producing recorded music. As they become increasingly budget-conscious, record labels are using less studio time and cutting back on the more expensive premium studio services. In addition, advancements in recording technology have led to the proliferation of backyard studios, which has increased competition for studios and squeezed profit margins.

In the music publishing business, sharp drops in record sales have reduced revenue received from mechanical royalties. Music publishers have responded by negotiating new agreements with recording artists and with the users of licensed music. They have met with some success in developing areas such as synchronisation royalties. Video games, for example, have been an area of strong growth for publishers. In the past five years industry revenue has declined at a compound annual rate of 0.2%. After a fall of 2.3% expected this year, the industry will total £1.34 billion in 2012-13.

Music publishers and sound recording studios face challenging times ahead, with the industry projected to increase only marginally in size over the next five years. Although music publishers have begun to diversify their sources of revenue, royalties from record sales still represent about 75% to 80% of revenue for most businesses. Johnson adds, “adapting to the age of fast internet and a high proportion of the regular users will be the key to success of industry operators”. New opportunities are being created for businesses as music listeners have new ways to access a greater breadth of music on numerous platforms. Nevertheless, revenue is expected to grow at an anaemic rate over the next five years to 2017-18.
The level of market share concentration in the UK Sound Recording & Music Publishing industry is classified as medium with the major three labels accounting for an estimated 50.5% of industry revenue. The major companies include Vivendi (Universal Music & EMI Music), Sony and Warner Music Group.

For more information on the Sound Recording & Music Publishing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

Firms in this industry produce original sound master recordings such as CDs, and promote and distribute them to wholesalers, retailers and consumers. Music publishers acquire and register copyrights for compositions; promote, authorise and use compositions in recordings, TV, and various other media; and publish music and sheet books. Publishers either own the copyright or act as administrator of the music copyrights on behalf of the copyright owners.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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Gavin Smith
IBISWorld
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