The U.K. music industry has performed well during turbulent times. In fact, it was up 5% last year, according to a new report by U.K. collecting society PRS For Music.

In "Adding Up the U.K. Music Industry for 2009," Will Page and Chris Carey have again created a comprehensive measurement of recorded music, publishing, live events, sponsorships and advertising revenues. When combined, the numbers create an picture that many other countries can only envy, not duplicate.

The paper stresses "caution over complacency," however. "Some of the challenges currently facing the U.K. music industry stem from regulation, recession and technology," they write, "especially as fast paced developments in cloud computing look set to take online music consumption 'off line'."

Main points and numbers from the paper:

-- The total value of the U.K. music industry is pegged at £3.9 billion ($6.2 billion). Business-to-consumer music spending (in recorded music and live music) grew 4.8% to £2.9 billion ($4.6 billion).

-- Live music spending grew 9.4% to £1.54 billion ($2.46 billion). In addition, live-related advertising and sponsorships grew 0.9% to £90 million ($143.5 million). Primary ticket revenue was up nearly 6% while secondary ticket revenue jumped 15%. Arenas accounted for most of this spending, and festivals had the higher per-head total spending.

-- Recorded music revenue stabilized in 2009. At £1.36 billion ($2.2 billion), trade revenues were flat compared to 2008 ("flat is the new up," they write). Record companies' licensing revenues increased 6.1% to £194 million ($309.2 million), however, from growth in multi-rights income and use of sound recordings in film, TV and video games.

-- International revenue had another strong year. "PRS for Music's strong-performing repertoire has resulted in a £100 million [$159.4 million] increase in overseas royalties in the last decade," they wrote, "whereas PPL has gone from zero to nudging £20 million [$31.9 million] in less than a decade."

Page and Carey devote considerable space in the paper to the differences between the U.K. and U.S. markets. Even though the two are similar - powerful labels and publishers, historical dominance in pop music - their recording industries are on different paths. Growth in the U.K. digital market appears not to have coincided with, or aided, the decimation of the physical music market. Rather, the two live side by side quite nicely. That's important not only for record labels but publishers as well -- mechanical royalties rise and fall with changes in CD sales.

The situation is quite different in the U.S., where digital growth has occurred as physical sales have fallen drastically and retailers have either shut down or shunned the CD. While the U.S. has a more mature digital market, the U.K. consumer actually spends more on recorded music -- $24.54 in the U.K. versus $14.85 in the U.S., according to the paper. Per capita digital revenues are somewhat close -- $6.53 in the U.S. versus $5.62 in the U.S. But U.K. consumers spend far more on physical product -- $18.92 per capita in the U.K. versus $8.32 in the U.S.

That's what happened in 2009. But what about the CD in the future? "Call me an optimist, but I just don't think it will go the same way as the USA, where many towns and cities don't have a specialist retailer," Page tells Billboard. He cites the cultural value of retail, HMV's expansion strategy and the strength of the independent sector as some of the reasons the CD stands a decent chance in the U.K.

Another key section of the paper covers three trends that question the sustainability of growth in live events. One is the gap between top earners and young acts is growing, which Page and Carey say is widening as top acts demand more money and small venues close across the country. The second corporation consolidation in live music industry: HMV completed its purchase of Mama Group and AEG and Academy Music continue to acquire venues. The third trend is the big drop in ticket sales in the U.S. Ticketmaster concert sales are down 14% through the first half of 2010.

These variables can impact the U.S. market, explains Page, because the two countries are intertwined. "If a major U.S. act has seen its U.S. tour bomb, with mounting losses, then it will be more hesitant about bringing the show to the U.K. Should it decide not to tour the U.K., that's one less act and a whole lot less tickets - regardless of what happens to the live sector here."

"Adding Up" is an important accounting of an important market. After all, it is a rare glimpse at the totality of a single market. U.S. readers should not feel removed from the state of the U.K. industry. Instead, they should look at the factors that have shaped that industry and ponder the differences.

"I think that the U.K. music industry has been especially innovative," Page says, "be it the willingness to license new digital models or advancements in live music discovery, recommendation and ticketing." And many people have created a healthy discourse about the U.K. industry's challenges, he adds, especially Feargal Sharkey, CEO of U.K. Music.