There are dozens more record shops in the UK than there were a decade ago, but the physical music market elsewhere is rapidly collapsing, new figures show.
A study by the Digital Entertainment and Retail Association (ERA) found that there are now 461 independent record shops in the UK, an increase of 122 from 2014. Looking purely at store numbers, the industry has recovered strongly after a slight decline in 2020, which could be attributed to the Covid-19 pandemic.
The high-profile resurgence of vinyl records and its controversial premium pushed vinyl revenue to more than £170m last year, the format’s 16th consecutive year of growth. £110m of this came from record releases rather than new music.
ERA chief executive Kim Bayley celebrated the success of the stores, saying: “Although these stores are largely run by owner-managers, independent developers have successfully fended off investment from some of the largest, most well-funded investors in the country. Competition from the strongest companies. Indies have found their niche and are here to stay. This shows that despite the overwhelming success of music streaming, many music fans are still committed to the high street physical music buying experience .”
In 2014, independent shops accounted for just 3% of the total number of music shops in the UK, but now stand at 23% – reflecting the growth in the number of independent shops but more importantly the decline in the number of supermarkets and other large stores selling music. The total number of stores selling music peaked in 2016 at 15,364 stores, while by 2023 this number had dropped significantly to 1,975 stores.
That’s because, while there is a small, loyal audience willing to spend money on vinyl records, most Britons are content to no longer own the music they play. ERA research shows that in 2014, 17% of music revenue was spent on acquiring music via streaming, with the remainder going on full ownership via physical format or download. By 2023, 84% of revenue will be spent on music purchases as streaming matures into the most popular option for music consumption today.
In 2023, smartphones will surpass car stereos as the most popular music listening device for the first time.
Of the three industries ERA monitors (music, video and games), music’s revenue remains the smallest. The rise of on-demand home streaming after the DVD market collapsed has given video a boost, surpassing video games for the first time in a decade. Only 8% of people choose to have video purchases instead of access videos, and the number of video retailers has dropped significantly from 10,500 in 2014 to 2,078 in 2023.
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