BBC Trust

The BBC’s music broadcasting and support for artists like Sam Smith, London Grammar and Ed Sheeran, made a significant positive contribution to the £3.8bn that the UK music industry generated in the UK economy in 2013, an independent report for the BBC Trust has found:

Technical Annex B: Market Impact, PDF (4.4MB)

The analysis, by KPMG, looked at the economic impact of the BBC on the music industry.  It considered the scale and scope of the BBC’s music related activities, an assessment of the link between media exposure for music and sales, analysis of the unique music played on four BBC radio stations, and case studies of the role of the BBC in the careers of several prominent UK artists. 

KPMG found that the scale of the BBC’s music related activity suggests that its economic impact in this area could be significant.  For example, in 2014, BBC music TV reached an average of around 7 million viewers each week, with particularly large audiences for events such as the BBC Music Awards (over 4 million), and the Last Night of the Proms and Proms in the Park (9 million).  The weekly reach of BBC Radio 1 was 10.4 million listeners, 15.1 million for Radio 2, and 2.1 million for 6 Music.

In March 2015, over 9,500 unique artists were played across Radio 1, 1Xtra, Radio 2 and 6Music, with 16,500 unique tracks over 800 hours.  Previous research also suggests that the BBC consistently plays more unique tracks per station than commercial radio. 

Case studies of artists like London Grammar, Ed Sheeran and Sam Smith show that the BBC’s early support for these artists helped to drive their success and were a factor in their contribution to the music industry economy:

• BBC radio was the first to provide airtime for the majority of London Grammar’s tracks – of 17 songs played on UK radio, 15 were played first on the BBC.  In their record label’s view, , the BBC was likely to have played a role in the estimated £4.3 million that album sales of London Grammar’s ‘If You Wait’ generated to the UK economy.
• The BBC was the first to play Sam Smith singles, on Radio 1, in 2012 and 2013, and Ed Sheeran had his first ever UK radio play on Radio 1Xtra. 
• Radio 1 playlisted two Clean Bandit singles and supported three before any commercial radio station had played Clean Bandit’s music; their debut TV appearance was on Later…with Jools Holland.
• The BBC’s support for emerging artists like Andreya Triana and Shaun Escoffery has boosted their careers and their contribution to the music industry.

The report also highlights the substantial economic contribution of BBC live music events, with six events in 2014 alone such as Radio 1 Big Weekend and the 6 Music Festival which were attended by over 180,000 people, and which contributed to the economy through, for example, spend with local suppliers.  For the 2015 6Music festival in Newcastle, all stage crew, lighting, PA equipment and security were from the local area, and 13 key suppliers for the festival were based in Newcastle and the North.

The findings are included in a report by KPMG for the BBC Trust on the role of the BBC in supporting economic growth, published today as part of the Trust’s research and analysis for the review of the BBC’s Charter. 

Notes to Editors

1. The Government’s Green Paper consultation on the BBC’s Charter Review asks: “where does the evidence suggest the BBC has a positive or negative wider impact on the market”.
2. The Trust is currently conducting its second public consultation as part of its Charter Review work, seeking views on proposals for the future of the BBC.  It includes a question about the BBC’s proposal to make the 50,000 tracks it broadcasts every month available to listen online for a limited period.  The consultation is open until 5 November.
3. The Trust conducted a service review of BBC music radio, published in March 2015, which noted that the BBC consistently plays more unique tracks per station than commercial radio.