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Though the music industry has been experiencing some infamous lows – with CD sales dropping and online piracy being some of the major factors behind decreasing revenue – a new report suggests that things are looking up. The Guardian reports that music sales grew 4.7 per cent last year, contributing £3.6 billion to the British economy. 

It seems that live music is becoming a major focus for bands’ revenue, as CD sales look dimmer by the moment (several major retailers, such as Woolworths, closed last year). Sponsorship deals made between big businesses and musicians have also shown themselves to be a more prominent feature in the current music economy.  These become more important as musicians and managers seek out new ways to make money outside of actual music sales.

For example, according to the chief economist at PRS for Music, Will Page, money made from licensing services like Spotify by big sponsorship deals made up 25 per cent of last year’s industry revenue – an increase of 9 per cent from the preceding year.

Page told The Guardian: “It’s not just about the Armageddon sales figures; the industry is becoming much more diversified. Revenues from business now make up a quarter of the overall pie, but whether this is enough to make up for the fall in CD sales remains to be seen.”