The value of diversifying income streams has been illustrated by new figures released by British labels trade body the BPI.
According to the BPI, a fifth (20.5%) of all U.K. record company turnover in 2011 came from revenues generated outside of traditional CD, DVD and digital services, with 'diversified revenues' (income generated from music synchronization, '360 degree' artist deals, concerts, music-related TV production, broadcasting and public performance) growing 8.4% year-on-year, rising from £189.3 million ($304.9 million) in 2010 to £205.3 million ($330.7 million).
Within those 'diversified revenue' streams, licensing income from television, radio and online broadcast, in addition to public performance revenues, collected by U.K. society PPL, combined with VPL revenues, increased to £83.2 million ($134 million).
Income from multiple-rights '360 degree' deals, including concert revenues, merchandising, touring and D2C sales generated £76 million ($122.4 million) in 2011, an increase of 14% on the previous year, according to the BPI.
Revenues from music synchronization also grew in 2011 despite a sharp fall in the U.K. games sync market, which dropped from £5.4 million ($8.7 million) in 2010 to £3.6 million ($5.8 million). However, that drop was offset by a rise in music syncs from film, television and adverts, with the sector growing almost 12% year-on-year and generating £18 million ($29 million) in 2011.
Commenting on the annual figures, BPI Chief Executive Geoff Taylor said in a statement: "British music companies have reinvented their businesses for the digital age, marketing and promoting music intelligently through every channel available.
"They have diversified their revenue base and this has established a solid platform for future growth as the transition to a majority digital business continues," Taylor went on to say.
As previously reported, the U.K. music market suffered a 3.4% decline in 2011 with total recorded music trade revenue amounting to £795.4 million (about $1.25 billion), down from £823.8 million ($1.3 billion) the previous year. Digital music revenues have continued to enjoy strong growth, however, with the U.K. digital market growing by almost 25% in 2011 to £281.6 million ($441 million) from £225.8 million ($353 million) the year before. Digital formats now account for more than a third (35.4%) of record industry trade income in the U.K., an 8% rise on the previous year.