Industry Statistics and Trends
Market size and recent performance (2016-2031)
Industry revenue has grown at a CAGR of 3.5 % over the past five years, to reach an estimated £464.2m in 2026.
Trends and Insights
Grassroots venue closures restrict artist development pathways and live revenue opportunities
- The UK lost one-quarter of its late-night music venues between 2020 and 2025, with two grassroots venues closing every month according to the Music Venue Trust (MVT). This collapse has disrupted the traditional artist development pipeline that independent labels have relied on to promote and hone emerging talent before they generate revenue from recordings. The decline has accelerated, with the MVT's Emergency Response Service handling 200 emergency cases (grassroots music venues facing the threat of permanent closure) in 2024, representing a 19% increase from 2023.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2026-2031)
Market size is projected to grow over the next five years.
Trends and Insights
Social media platforms could drive revenue for independent labels
- Social media platforms, particularly short-form video sites like TikTok, Instagram Reels and YouTube Shorts, are transforming the media landscape. They are used as promotional tools, direct revenue channels and by users for music discovery. The music discovery algorithm on TikTok has proven very effective at launching independent artists into mainstream success, with labels increasingly structuring marketing budgets around short-form video content rather than traditional advertising.
Biggest companies in the Independent Label Music Production in the UK
| Company | Market Share (%)
2026 | Revenue (£m)
2026 |
|---|---|---|
BMG Rights Management (UK) Ltd | 68.6 | |
Beggars Group Ltd | 14.1 | |
Domino Recording Company Ltd | 11.1 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Audio streaming, Digital and physical sales and Other. Audio streaming is the largest segment of the Independent Label Music Production in the UK.
Trends and Insights
Music streaming services have surpassed all other mediums for the distribution of music
- Streaming revenue has become the primary income driver for music labels across the world, including UK independent labels. UK streaming revenue surpassed £1 billion in trade revenue for the first time in 2024, according to the British Phonographic Industry (BPI).
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Independent record labels find musical talent, finance the production of music and distribute recordings to retail and digital outlets. These labels have smaller budgets and operations than major labels, and independent labels frequently outsource manufacturing and distribution of physical records. Major labels are included in the Major Label Music Production industry.
What's included in this industry?
Products and services covered in the Independent Label Music Production industry in the United Kingdom include Audio streaming, Digital singles and albums and Physical sales.Companies
Companies covered in the Independent Label Music Production industry in the United Kingdom include BMG Rights Management (UK) Ltd, Beggars Group Ltd and Domino Recording Company Ltd.Purchase this report to view all 3 major companies in this industry.
Related Terms
Related terms covered in the Independent Label Music Production industry in the United Kingdom include label, digital download and indie.Industry Code
SIC 59.2 - Independent Label Music Production in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Digital music consumption continues to climb. The boom in streaming services and digital music downloads in the UK offers a crucial financial lifeline for independent labels,...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2016-2025) and forecast (2026-2031)
- Employees, including historical (2016-2025) and forecast (2026-2031)
- Businesses, including historical (2016-2025) and forecast (2026-2031)
- Profit, including historical (2016-2026)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Streaming services dominate indie labels’ distribution. Offering an extensive catalogue, global platforms like Spotify, Apple Music and Amazon Music have skyrocketed in appea...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2026
- Product innovation level
Charts
- Products & services segmentation in 2026
- Major market segmentation in 2026
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
London dominates the UK music scene. Thanks to its rich cultural tapestry and position as the UK’s music centre, the city draws and nurtures talent, fostering a thriving envi...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2026
Tables
- Number and share of establishments in each region in 2026
- Number and share of revenue each region accounts for in 2026
- Number and share of wages each region accounts for in 2026
- Number and share of employees in each region in 2026
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Strong artist promotion is key to competing. Indie labels work closely with artists to schedule tours and manage social media campaigns, making strong use of online channels ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2021-2026
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
BMG Rights Management thrives. Its success is rooted in a strong roster of internationally successful artists and diversified income streams, bolstered by strategic investmen...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2022 through 2026
- Major companies in the industry, including market share, revenue, profit and profit margin in 2026
- Overview of BMG Rights Management (UK) Ltd's performance by revenue, market share and profit margin from 2020 through 2026
- Overview of Beggars Group Ltd's performance by revenue, market share and profit margin from 2020 through 2026
- Overview of Domino Recording Company Ltd's performance by revenue, market share and profit margin from 2020 through 2026
Detailed analysis
- Description and key data for BMG Rights Management (UK) Ltd, and factors influencing its performance in the industry
- Description and key data for Beggars Group Ltd, and factors influencing its performance in the industry
- Description and key data for Domino Recording Company Ltd, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Copyright protection is key to indie labels’ survival. It ensures they maintain control over their artists' creations and are able to monetise them.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2016-2031)
- Assistance historical data and forecast (2016-2031)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit fares well in the face of weak revenue. Unauthorised downloads of intellectual property and falling album sales strain revenue, but the emergence of monetised music st...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2020-2024)
- Coverage Ratios (2020-2024)
- Leverage Ratios (2020-2024)
- Operating Ratios (2020-2024)
- Assets (2020-2024)
- Liabilities (2020-2024)
- Cash Flow & Debt Service Ratios (2016-2031)
- Revenue per Employee (2016-2031)
- Revenue per Enterprise (2016-2031)
- Employees per Establishment (2016-2031)
- Employees per Enterprise (2016-2031)
- Average Wage (2016-2031)
- Wages/Revenue (2016-2031)
- Establishments per Enterprise (2016-2031)
- IVA/Revenue (2016-2031)
- Imports/Demand (2016-2031)
- Exports/Revenue (2016-2031)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2016-2031)
- IVA (2016-2031)
- Establishments (2016-2031)
- Enterprises (2016-2031)
- Employment (2016-2031)
- Exports (2016-2031)
- Imports (2016-2031)
- Wages (2016-2031)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Independent Label Music Production industry in the United Kingdom in 2026?
The market size of the Independent Label Music Production industry in the United Kingdom is £464.2m in 2026.
How many businesses are there in the Independent Label Music Production industry in the United Kingdom in 2026?
There are 1,992 businesses in the Independent Label Music Production industry in the United Kingdom, which has grown at a CAGR of 0.8 % between 2021 and 2026.
How may import tariffs affect the Independent Label Music Production industry in the United Kingdom?
The Independent Label Music Production industry in the United Kingdom is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Independent Label Music Production industry in the United Kingdom?
The Independent Label Music Production industry in the United Kingdom is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Independent Label Music Production industry in the United Kingdom grown or declined over the past 5 years?
The market size of the Independent Label Music Production industry in the United Kingdom has been growing at a CAGR of 3.5 % between 2021 and 2026.
What is the forecast growth of the Independent Label Music Production industry in the United Kingdom over the next 5 years?
Over the next five years, the Independent Label Music Production industry in the United Kingdom is expected to grow.
What are the biggest companies in the Independent Label Music Production industry in the United Kingdom?
The biggest companies operating in the Independent Label Music Production industry in the United Kingdom are BMG Rights Management (UK) Ltd, Beggars Group Ltd and Domino Recording Company Ltd
What does the Independent Label Music Production industry in the United Kingdom include?
Audio streaming and Digital singles and albums are part of the Independent Label Music Production industry in the United Kingdom.
Which companies have the highest market share in the Independent Label Music Production industry in the United Kingdom?
The company holding the most market share in the Independent Label Music Production industry in the United Kingdom is BMG Rights Management (UK) Ltd.
How competitive is the Independent Label Music Production industry in the United Kingdom?
The level of competition is moderate and increasing in the Independent Label Music Production industry in the United Kingdom.
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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