Understanding the value behind the music
Liverpool City Region’s musical reputation is recognised worldwide. Understanding the businesses, people and activity behind that reputation gives decision-makers a stronger basis for supporting its future.
Commissioned by Liverpool City Council, this research mapped the region’s music economy to establish its scale, identify its strengths and explore opportunities for growth. It estimates an annual economic impact of £780 million and sets out a potential pathway towards a £1 billion sector by 2035.
Making the whole music economy visible
The study combined registered business data, information on freelance professionals, sector mapping and survey evidence. Its approach accounted for people who combine music with other work, capturing activity that conventional business and employment statistics can overlook.
The analysis identified particular strengths in publishing and licensing, technical production, and live events. Together, these support a network of artists, venues, suppliers and specialist businesses serving markets within and beyond the region.
It also highlighted gaps in artist management, business services, marketing and media. These gaps mean some commercial opportunities and spending flow outside the region. Freelancers and smaller organisations can also face barriers to accessing finance, premises and support, limiting their ability to build sustainable businesses.
A substantial contribution to the regional economy
The research estimates music’s direct economic contribution alongside its wider effects through supply chains and spending by workers.
million estimated annual economic impact, including supply-chain and worker-spending effects
million estimated direct gross value added by the music sector
estimated full-time equivalent jobs across the music economy
Figures include modelled estimates of freelance and part-time music activity. Full-time equivalents account for time spent working in music and are not a count of individual workers.
Building towards a £1 billion sector
The report identifies opportunities to retain more of the value created locally. Helping artists register and manage their rights, strengthen publishing arrangements and access licensing opportunities could improve the returns from their work. Developing local management and professional services would help more of that business stay within the region.
Further growth could build on established strengths in technical production, alongside support for freelancers and emerging music technology businesses. Protecting grassroots venues and strengthening connections between performance spaces would also support artist development and the wider supply chain.
Reaching £1 billion in annual economic impact by 2035 would require approximately 2.5% compound annual growth from the report’s baseline. The research presents this as an achievable ambition if the conditions for growth are maintained, giving partners evidence to guide investment, business support and sector planning.
Commissioned by Liverpool City Council as part of the Music Sector Development Programme, funded through Liverpool City Region Combined Authority’s Strategic Investment Fund. Research by The Fifth Sector and the Institute of Popular Music at the University of Liverpool.
