New figures released today by UK record labels association the BPI show that, despite challenging trading conditions, 2008’s strong release schedule and expanding digital retail sector helped the music market exceed expectations.
A strong final quarter release schedule – The Killers, Now 71, Pink, Girls Aloud, Oasis, Snow Patrol and Take That (which was the third fastest selling album in history) – meant that the UK albums market actually performed better year-on-year than the same period in 2007, up by 0.9%.
The albums market, which some analysts had forecast would experience double digit decline in 2008, saw a modest volume decline of just 3.2% in 2008. The digital albums market grew strongly during 2008; with 10 million sold – a 65% increase compared to 2007 – the format now holds 7.7% of the entire albums market.
Throughout 2008 the UK single tracks market, driven by continued growth in download sales, grew by 33%. With over 115 million single tracks sold across all formats, 2008 was the biggest sales year on record in unit terms. Digital growth, however, was not confined to unit sales with labels benefitting from new digital models such as We7 and Comes With Music entering the marketplace in 2008.
The strong demand for new releases means that although the physical supply chain has suffered serious difficulties due to general economic conditions, with retailers Woolworths and Zavvi, and distributors EUK and Pinnacle falling into administration, sales have migrated to other physical retailers including supermarkets, and to digital retailers and online stores.
Despite a slowdown in consumer spending and the pressures on the high street, these figures show that demand for new music remains high. The business has further cause for optimism in 2009, with government set to introduce new policies to combat unlawful downloading in the first half of the year.
British music continues to perform strongly at home and abroad. For the first time in Grammy history, UK signed acts achieved a clean sweep in the prestigious Record of the Year category, with Leona Lewis, Adele, M.I.A, Coldplay, and Robert Plant & Alison Krauss in the running. Coldplay were nominated for a total of seven Grammy Awards, while Radiohead’s In Rainbows was nominated for Album of the Year, and UK talents Adele and Duffy were both nominated for Best New Artist.
BPI Chief Executive Geoff Taylor said:
“Every business and consumer in the UK is having a tough time, and these difficult trading conditions make the resilience of the UK’s music market all the more notable. During a recession, people look for purchases that are excellent value for money and bring a lot of enjoyment, and music does just this.
“A strong release schedule and a digital retail market that continues to diversify and grow helped the business confront the challenges of unlawful p2p and disruption to retail supply to deliver what are, in context, encouraging sales figures in 2008.
“The challenge for music companies in 2009 is to ensure that artist investment continues to remain profitable, as the way consumers discover and enjoy music continues to go through a period of unprecedented change.”
Kim Bayley, Director General of the Entertainment Retailers Association, said:
"Music performed better in UK stores in 2008 than anyone had expected. The fact that UK retailers sold more albums in the fourth quarter of 2008 than in 2007 is particularly striking. Given that they did so against the background of the collapse of Entertainment UK, a wholesaler supplying around 40% of UK unit sales is a real testament to the work put in by retailers and record companies to put in place alternative supply arrangements.
"The big lesson of 2008 is that if the music is strong enough and retailers work well with suppliers to get that product in-store, music fans will respond and buy in their droves."
- ENDS –
For further information, contact the BPI communications department on 020 7803 1395.
EDITORS NOTES
The BPI represents the UK recorded music business. All figures quoted above are supplied by the Official Charts Company.
a. 2008 Top Sellers
i. Singles
|
Posn
|
Title
|
Artist
|
Label
|
(Corporate Group)
|
|
1
|
HALLELUJAH
|
ALEXANDRA BURKE
|
SYCO MUSIC
|
SONY BMG MUSIC
|
|
2
|
HERO
|
X FACTOR FINALISTS
|
SYCO MUSIC
|
SONY BMG MUSIC
|
|
3
|
MERCY
|
DUFFY
|
A&M
|
UNIVERSAL MUSIC
|
|
4
|
I KISSED A GIRL
|
KATY PERRY
|
VIRGIN
|
EMI MUSIC
|
|
5
|
ROCKSTAR
|
NICKELBACK
|
ROADRUNNER
|
WARNER MUSIC
|
|
6
|
AMERICAN BOY
|
ESTELLE FT KANYE WEST
|
ATLANTIC/HOMESCHOOL
|
WARNER MUSIC
|
|
7
|
SEX ON FIRE
|
KINGS OF LEON
|
HAND ME DOWN
|
SONY BMG MUSIC
|
|
8
|
NOW YOU'RE GONE
|
BASSHUNTER FT DJ MENTAL THEO
|
HARD2BEAT
|
MSHK
|
|
9
|
4 MINUTES
|
MADONNA FT JUSTIN TIMBERLAKE
|
WARNER BROS
|
WARNER MUSIC
|
|
10
|
BLACK & GOLD
|
SAM SPARRO
|
ISLAND
|
UNIVERSAL MUSIC
|
ii. Artist albums
|
Posn
|
Title
|
Artist
|
Label
|
(Corporate Group)
|
|
1
|
ROCKFERRY
|
DUFFY
|
A&M
|
UNIVERSAL MUSIC
|
|
2
|
THE CIRCUS
|
TAKE THAT
|
POLYDOR
|
UNIVERSAL MUSIC
|
|
3
|
ONLY BY THE NIGHT
|
KINGS OF LEON
|
HAND ME DOWN
|
SONY BMG MUSIC
|
|
4
|
SPIRIT
|
LEONA LEWIS
|
SYCO MUSIC
|
SONY BMG MUSIC
|
|
5
|
VIVA LA VIDA OR DEATH AND ALL HIS
|
COLDPLAY
|
PARLOPHONE
|
EMI MUSIC
|
|
6
|
GOOD GIRL GONE BAD
|
RIHANNA
|
DEF JAM
|
UNIVERSAL MUSIC
|
|
7
|
DAY & AGE
|
KILLERS
|
VERTIGO
|
UNIVERSAL MUSIC
|
|
8
|
OUT OF CONTROL
|
GIRLS ALOUD
|
FASCINATION
|
UNIVERSAL MUSIC
|
|
9
|
FUNHOUSE
|
PINK
|
LAFACE
|
SONY BMG MUSIC
|
|
10
|
SCOUTING FOR GIRLS
|
SCOUTING FOR GIRLS
|
EPIC
|
SONY BMG MUSIC
|
iii. Combined albums (artist and compilation):
|
Posn
|
Title
|
Artist
|
Label
|
(Corporate Group)
|
|
1
|
ROCKFERRY
|
DUFFY
|
A&M
|
UNIVERSAL MUSIC
|
|
2
|
THE CIRCUS
|
TAKE THAT
|
POLYDOR
|
UNIVERSAL MUSIC
|
|
3
|
ONLY BY THE NIGHT
|
KINGS OF LEON
|
HAND ME DOWN
|
SONY BMG MUSIC
|
|
4
|
SPIRIT
|
LEONA LEWIS
|
SYCO MUSIC
|
SONY BMG MUSIC
|
|
5
|
VIVA LA VIDA OR DEATH AND ALL HIS
|
COLDPLAY
|
PARLOPHONE
|
EMI MUSIC
|
|
6
|
MAMMA MIA
|
ORIGINAL SOUNDTRACK
|
POLYDOR
|
UNIVERSAL MUSIC
|
|
7
|
NOW THAT'S WHAT I CALL MUSIC 71
|
VARIOUS ARTISTS
|
EMI VIRGIN/UMTV
|
EMI/UNIVERSAL
|
|
8
|
NOW THAT'S WHAT I CALL MUSIC 70
|
VARIOUS ARTISTS
|
EMI VIRGIN/UMTV
|
EMI/UNIVERSAL
|
|
9
|
NOW THAT'S WHAT I CALL MUSIC 69
|
VARIOUS ARTISTS
|
EMI VIRGIN/UMTV
|
EMI/UNIVERSAL
|
|
10
|
GOOD GIRL GONE BAD
|
RIHANNA
|
DEF JAM
|
UNIVERSAL MUSIC
|
b. Market Volumes: Ten Year Trend
|
Albums
|
Singles
|
|
1997
|
109.4
|
77.8
|
|
1998
|
121.5
|
73.8
|
|
1999
|
121.5
|
71.0
|
|
2000
|
134.3
|
55.7
|
|
2001
|
144.9
|
51.2
|
|
2002
|
149.2
|
43.9
|
|
2003
|
159.3
|
30.9
|
|
2004
|
163.4
|
32.3
|
|
2005
|
159.0
|
47.9
|
|
2006
|
154.7
|
67.0
|
|
2007
|
138.1
|
86.6
|
|
2008
|
133.6
|
115.1
|
* Figures are for all formats. Data supplied by The Official Charts Company.
c. Q4 album sales
2007: 49.4m
2008: 49.8m (up 0.9% on 2007)
* Figures are for all formats. Data supplied by The Official Charts Company.
d. Diversification of Retail
Independent stores, high-street specialists, and multiples have been under pressure, but retail has diversified.
In 2000, independent retailers, specialists and multiples had 86.4% of the UK albums market, compared to supermarkets and online retailers’ 13.6%. By 2007, the former had a 67.7% market share to the latter’s 32.2%.
* Figures supplied by TNS: Audio Trak Survey.