Battered and bruised, London’s revamped music industry has returned to full voice
KATY Perry has promised to deliver “purposeful pop” at tonight’s gathering of the capital’s music execs at the Brit Awards. It’s an apt description from the songstress nailing her return as an industry with renewed purpose appears, finally, to be getting to grips with its new world order.
After nearly two decades of hand-wringing, live music is pulling in sell-out crowds, streaming is starting to pay and artists are getting in on endorsements. Last week, it was even announced that the MTV Europe Awards will be returning to London in November after a 20-year absence.
But the more than 100,000 people working in London’s music industry still can’t rest easy. PostBrexit and with Silicon Valley giants like Apple and YouTube dictating the direction of the industry, could London lose its lustre?
‘The UK is 1% of the world population, 15% of all music sold and 19% of streamed music’
In its 2016 report on the industry, trade body the BPI put British record company revenues at £688 million, a 1% decline on the previous year. Total music sales rose 4.6% to £1.1 billion last year, the Entertainment Retailers Association said. The fall in CD sales has softened (they’re still unusually popular in the UK, at 41%), and downloads have yielded to streaming.
Adele’s dominance at the Grammys displayed the pulling power of British acts: she heads a pack, including Ed Sheeran and Sam Smith, that in 2015 helped home-grown artists enjoy the highest share of UK album-buying since 1997. For London’s three major labels, Universal, Warner and Sony, the Britons’ success, combined with the increasingly lucrative rights to some of music’s legendary names during a macabre 2016 of celebrity deaths, has provided a sales boost. The trio sit in a power base in Kensington High Street, for now.
At Universal, owned by French media giant Vivendi, UK boss David Joseph is preparing to uproot the label’s 800 staff to swish King’s Cross digs next summer to allow an easy commute from creative east London. On being granted a rare interview, I pass Take That’s Gary Barlow on visiting the man viewed as the most powerful in UK music.
Joseph’s office is large, with huge posters including the His Master’s Voice dog and gramophone made famous by HMV and a signed Rufus Wainwright one. A scented candle is burning. In late 2015, fears rose that the capital’s power may be reduced by global chief Sir Lucian Grainge’s decision to move some jobs in its overseas department away from London. But Joseph is bullish: “The UK punches way above its weight. We’re 1% of the world population, we’re 15% of all music sold and 19% of streamed music.” The contemplative chief believes London’s bustling grime scene, featuring Stormzy and Nadia Rose, is “the first part of the book which will give birth to something interesting musically”, while streaming has allowed leftfield British acts like James Blake to succeed Stateside without mainstream radio play.
Max Lousada, chief executive of billionaire Len Blavatnik’s Warner — home to Blur and Anne Marie — says that adding to his 500-strong team is getting easier. “Creative people had been applying to the Facebooks and Googles — now they’re coming to us. There’s an understanding that health has returned to the music industry.”
For rival Sony Music UK, a question mark remains over its troubled Japanese owner’s direction overseas, especially now that entertainment chief Michael Lynton has left to chair Snapchat’s huge IPO. But smaller labels are fighting an uphill battle, attempting to deal with overseas streaming giants Spotify, Apple, YouTube, Deezer and Pandora. Britain’s attempts to play in the market, including indies Domino and Ninja Tune’s failed attempt Drip.fm (since revived by Kickstarter), have struggled. Even bling king Jay-Z is finding it tough with his artistfriendly take, Tidal. “Streaming and Brexit leave so much in the air, and beyond Adele there’s a worry about depth of talent,” cautions one label boss. “There’s a real worry over who the next big bands will be.” Coldplay, formed in 1996, were the lone UK act in Spotify’s most streamed artists of last year.
But live music is indisputably booming. Reformed acts like The Stone Roses have drawn big crowds with disposable income and promoters have been quick to capitalise. “It has changed the industry’s thinking completely,” says Chrysalis Records’ chief Jeremy Lascelles. “Artists used to rely on the success of the single; now concert tickets, merchandising and engaging with fans are most important.”
But John Reid, chief executive of Brixton Academy owner Live Nation — the promoter behind some of the world’s biggest shows — says there’s a capacity crunch in London. “The O2 is fantastic but when you factor in tennis tournaments and family entertainment, it gets busy — there’s space for another big venue here.” The Belfast man adds that the Olympic Stadium has helped — Guns N’ Roses will play there this summer.
Meanwhile, Live Nation’s 2015 deal to buy Camden Jazz Café owner
Mama Group showed there’s still an appeal in mid-sized venues. London Mayor Sadiq Khan last month welcomed a stabilising in the number of London grassroots venues (94, down 35% since 2007) in his rescue plan for live music. Reid said of Khan’s new night tzar: “It’s encouraging; culture underpins the city and the economy can’t just run on banks.”
Beyond the elite, the story is much tougher for artists. Critically acclaimed Sheffield duo Slow Club last week described a tough life on the road, rooming with session musicians in grotty hotels despite relative success. “I am essentially skint,” said lead singer Rebecca Taylor.
Artists are also broadening their appeal. Neil Warnock, the boss of UTA, agent to Brian Wilson and MF Doom, says: “As well as ensuring artists spectacular returns from live, we’re broadening their disciplines for the future, whether it’s branding, film, TV, endorsements…”
Universal’s Joseph is looking to the Instagram generation for his next long-term project. “[Sex Pistols manager] Malcolm McLaren said there’s a sound of fashion,” he says. “London designers and musicians are in a great place — it’s how you can marry them together to make them as convenient as streaming has made music. We’re seeing shorter windows between what’s being previewed and what’s available in fashion. There’s an entire generation where the word ‘wait’ has been removed from the vocabulary.”
Listen up, dedicated followers of fashion.
@MrAlexLawson