Now, with UK inflation running at nine per cent – its highest rate for 40 years – UK Music CEO Jamie Njoku-Goodwin says music is being hit by an unprecedented “double-whammy”.
“The music industry is seeing rising energy and labour costs, there are all sorts of post-Brexit frictions and things are slowing down in the supply chain – so businesses are feeling the pressure,” he explains. “And, on the flipside, audiences are as well. People have got less money to spend and there are lots of people worried about what impact that will have on demand.”
Usually, rampant inflation sees people concentrate on buying necessities (food and energy bills), while ‘discretionary’ spend on things like entertainment falls. So, everything from sales of expensive vinyl albums to monthly streaming subscriptions could be hit.
Against that backdrop, live music would appear to be under particular threat. The price of tickets had been rising steadily in recent years, a trend that, understandably, seems to have accelerated post-pandemic. But, once the backlog of postponed 2020/2021 gigs is cleared, many in the industry fear ticket sales – which have been strong in the immediate COVID aftermath – could drop off.
“People are definitely thinking about what they spend their money on,” says Andy Copping, Download Festival organiser and a promoter for Live Nation. “The cost of trucking, crews and fuel has gone up significantly and that has to be covered. The easiest thing would be to go, ‘Costs have gone up 40 per cent so the cost of the tickets has got to go up 40 per cent.’ But we can’t just do that; we’ve got to be a bit smarter.”
That may mean further use of controversial, airline-style ‘dynamic pricing’, where prices rise or fall according to demand, although advocates for the system say it should also mean some tickets remain available at lower prices.