Britain’s multibillion-pound recorded music industry is a headline act on the global stage and the head of its industry body wants it to stay that way. Jo Twist, chief executive of the BPI, is “proud of the fact that the UK still accounts for nearly 10 per cent of the world’s music consumption and yet we are just 1 per cent of the global population”. Indeed, the country is the third largest market for recorded music and the largest exporter of recorded music after the United States.
It’s rock and pop heritage stretches from the Beatles and the Rolling Stones, via David Bowie and Queen to Oasis and Blur, Amy Winehouse, Ed Sheeran and more. And the hits keep on coming. Recorded music revenues rose for a ninth consecutive year in 2023 and annual recorded music exports are on track to hit £1 billion by 2030.
Yet, despite all this, the music industry has something of an image problem in Westminster. There has been a long-running debate about the streaming royalties paid to artists, while in the House of Commons the culture, media and sport select committee has called repeatedly for a “complete reset” of the music streaming industry to ensure a fairer split of revenue between labels and writers, composers and singers amid the rapid changes in the way in which content is consumed.
Jo Twist heads the BPI, the music industry trade body
LOUISE HAYWOOD-SCHIEFER
Now that there is a new government, Twist, boss of the BPI, the trade body formerly known as the British Phonographic Industry, since last year fears that its glittering success could be taken for granted. “The industry is extraordinarily successful and is a cornerstone of the UK’s creative sector, but it’s not always thought about in economic terms in the same way as film, TV or gaming, which means there’s a risk the industry behind it is taken for granted. One of our challenges is getting policymakers to look at music with their heads as well as their hearts.”
A lot is at stake. With £2 billion in retail sales, the music industry contributes more than £6.7 billion in gross value added to the economy every year and employs in excess of 210,000 people, more than the insurance, steel and pharmaceuticals sectors put together.
Twist wants ministers to take an “evidence-based approach” to head off “unintended consequences” of any policy changes, arguing that “with the right support, the British music industry can flourish”.
Meanwhile, other challenges are emerging, including content generated by artificial intelligence and increasing competition on the global stage, such as from South Korea’s K-pop scene and from South America. “It’s important that we act, as our global share is coming under increasing pressure,” Twist said. “Streaming has created many benefits, but it has also levelled the playing field for many more music markets to become competitive globally. We should be really confident, but not complacent.”
Blur on their successful reunion concerts at Wembley last year
JIM DYSON/GETTY IMAGES
She has some prominent platforms that can amplify her message. The BPI owns and runs The Brit Awards, which returned to television screens this year. It is also behind the Mercury Prize, recently won by English Teacher, the Leeds-based band.
Twist, 51, is a former BBC and Channel 4 journalist with a doctorate in online communities. Between 2012 and 2023 she was the chief executive of UK Interactive Entertainment, the trade body for games and interactive entertainment businesses. Coming into the music industry was “a bit like moving to a new country and learning a new language, or joining a secondary school halfway through”.
With her feet now firmly under the table at the BPI, Twist believes that if the music industry continues to prosper, it can help to boost the UK’s “cultural power”, as well as unlocking economic growth. As such, it can be a “critical partner” for the new government and its growth ambitions.
For a fan of “angry music” such as Idles, the post-punk band, she makes her arguments calmly. “For British music to thrive, the industry that powers it needs to be able to thrive. The government has made growth its priority and we want to support them in recognising music’s immense growth potential.”
Unsurprisingly, given her BPI role, Twist is pro-record label, calling the companies the “engine room” for the nation’s musical success. Three quarters of the music consumed in the UK comes from them, whether they are global powerhouses or small independents. Twist believes that the role of labels, with their willingness to “take on risk”, has “never been more important for artists because it is a highly competitive global landscape”.
The Fab Four kicked off the British Invasion
MICHAEL OCHS ARCHIVES/GETTY IMAGES
“Pro-artist” UK record labels invest the best part of £500 million every year in new and current artists’ careers, be that through A&R (scouting for and developing talent), marketing and promotion, generating revenue from merchandise and gaming, or “sync”, where music is set to film. Labels also protect creative output from the threats posed by piracy and generative AI.
“Artists now have more choice in labels and deal types than ever before, with improved royalty rates, as well as having the option of going it alone. While the music industry isn’t quite back to the size it was before the piracy era, it has returned to growth and the share of revenue going to artists has risen faster than the growth in industry revenues. Many more artists are thriving in the streaming era as a result.”
The BPI claims that average royalty rates on traditional deals have increased to an average of 25 per cent to 26 per cent, which is higher than in the era of CDs. Labels and distributors have brought in a streaming transparency code so that artists can better understand how it works.
Twist wants to see more “targeted support” from the government, highlighting the success of the music export growth scheme, which the BPI administers. Funded by the industry and government, it supports indie artists in building their fanbases, profiles and successes overseas via touring and digital marketing and promotion. So far, more than 300 artists have benefited. For every pound received, their activity has generated nearly £14 in music exports. An expansion of this scheme would allow export targets to be met.
Lily Fontaine, singer with English Teacher, winners of the Mercury Prize
ALAMY
She also wants the government to improve access to, and the funding of, creative education. “Every young person in the country should have access to creative opportunities in education. We would love to see better funding for all grades of education. We’re very fortunate that we had a successful application to open a new school in Bradford.”
Inspired by The Brit School, which was established by the BPI but is now a state school, from September 2027 the new specialist creative college in Bradford will offer 500 places to young people aged 16 to 19. Students will be able to study performance-based courses, but also “vital” technical and digital skills for the creative industries.
That segways to technology, another big focus for Twist. The BPI recently announced a partnership with London & Partners, the business growth agency, for a programme called Grow Music, which will position London as a hub of music technology, innovation and growth. Partners include Anthony David King, the investor, and Abbey Road Red, the incubator.
AI offers both a challenge and an opportunity. Twist, who is on the UK Research and innovation AI Strategic Advisory Team, said: “Realising AI’s exciting potential must not come at the expense of human artistry, nor the gold standard framework of rights that are the foundation of our globally successful music and creative industries. AI training must be transparent, licensed and with permission sought from rights-holders.” The copyright framework at the heart of the BPI should come into its own here.
Much like music itself, the industry is always evolving, as are its opportunities and challenges.