News Release

Embargo: not for publication or broadcast before 00:01 am 10 October 2001

London's music industry hits the right note

London's music industry contributes over £1 billion a year to the UK economy and generates net overseas earnings of over £400 million, according to new research published in the latest issue of Cultural Trends.

As well as its significant national contribution, the research calculates the impact the music industry has on Londoners' lives. It shows that:

• Total spending on music by London consumers and London-based companies is over £1.1 billion. The largest proportion of this comes from consumer spending on CDs, minidiscs and cassettes (£345 million), and on ticket sales for live music events (£381 million). Londoners also spend around £128 million annually on musical instruments, £18 million on sheet music, and £19 million on tuition fees.
• There are a staggering 700 musical events held in London every week, from calypso steel bands to clog dancing. These events involve some 1250 acts ranging from classical music orchestras to club DJs. (And that's not including small local music events such as pub bands and local discos.) London has around 600 recognised venues where music is regularly performed, and a further 1000 venues licensed by local authorities for occasional public entertainment.
• London has an estimated 1250 record companies, over 650 firms involved in artist management, 877 retail outlets, 189 recording and post-production studios, 76 distributors, 60 manufacturers of musical instruments and 40 manufacturing companies.
• Music employs over 55,000 Londoners - the equivalent of some 32,000 full time jobs, of which 13,350 are full-time jobs for musicians and composers.
• Annual public sector spend on music in London is £94.9 million. Almost all of this (90 per cent) goes to classical music.

Andrew Pinnock, Head of Music at London Arts, who commissioned the research, said:

"This is a thought-provoking, intelligently researched and surprisingly readable report on London's whole musical economy - as far as we're aware the first attempted. Policymakers studying it will be able to see how the subsidised and unsubsidised sectors interrelate. A lot of hugely worthwhile music-making happens without any Arts Council, London Arts or local authority funding to help it along; but it's worth asking how much more could be achieved if better connections were made."

Dave Laing, one of the authors of the report, added:

"The music scene in London is thriving: but we could be doing even better. At present almost all the available government subsidy goes to classical music. I'd like to see a larger audience enjoying that. Just as important - I'd like to see many more non-classical listeners and performers benefiting. Current, historically-determined spending patterns are unduly restrictive. From both a business and an audience development point of view it seems clear that investment could be both fairer and more effective."

Contact: Jo O'Driscoll, PSI, on 020 7468 2269

Notes to editors

1. 'The Value of Music in London' is in Cultural Trends 38, published by Policy Studies Institute. Press review copies are available from the PSI Press Office on (020) 7468 0468.
2. The chapter is based on research commissioned by London Arts from Dave Laing and Norton York at the University of Westminster. The research included primary analysis of musical events and of the geographical clustering of music firms in London, and secondary analyses of accounts and data from a range of primary sources, including the Arts Council of England, the BBC, Performing Right Society, British Phonographic Industry, Music Week Directory, British and International Music Yearbook and many more.
3. The music activities covered by the research include copyright exploitation, production, retailing and distribution of recorded music and of musical instruments, promotion and management, live performance earnings, music publishing and spending on tickets for musical events. Not included are music broadcasting or journalism or the sale of hi-fi goods. It was not possible to value the 'informal' music economy (of illegal clubs and bootleg CDs), and no attempt was made to decide what proportion of London's tourist income can be attributed to the music scene.
4. PSI is a registered educational charity (no. 313819) and has no association with any political party, pressure group or commercial interest.