The UK music industry is entering a new phase in 2025. Streaming growth is slowing after years of double-digit increases. While optimism remains about the future of digital music, the latest figures show a maturing market. Subscription pricing, free tiers, and new premium offerings are now central to the debate.
Growth Figures Tell the Story
Streaming growth in Q3 2025 was just 4.9% year-on-year. That compares with 11.4% in 2024 and 12.2% in 2023. Vinyl sales, meanwhile, are up 7.4% this year, outpacing streaming for the first time in years. Industry leaders admit the era of exponential growth is over. Yet they stress that streaming remains dominant, accounting for nearly 89% of recorded consumption in 2024. BPI CEO Dr Jo Twist said slowing growth is natural as subscriber numbers mature, but she expects “solid growth for more years to come.”
Spotify sits at the center of this shift. The company raised its UK Premium Individual subscription to £12.99 a month. CFO Christian Luiga and incoming co-CEO Alex Norström defended the increase as part of a careful strategy. They weigh household income, market maturity, and added value such as audiobooks and lossless audio. Daniel Ek, set to become executive chairman in 2026, emphasized that Spotify is now a multi-vertical platform spanning music, podcasts, and audiobooks. Despite higher prices, Spotify reported a 12% rise in subscribers, with retention rates holding steady across more than 150 markets.
The Big Picture
Industry voices argue that streaming still offers remarkable value compared to video subscriptions. Free tiers remain crucial for attracting and retaining users. Spotify says 60% of Premium subscribers began on its free service. Looking ahead, new super-premium tiers and major Q4 releases from Taylor Swift, Sabrina Carpenter, Olivia Dean, and Lily Allen could lift consumption.
The key takeaway is clear. Streaming growth in the UK may be slowing, but the market is far from saturated. Price rises, free tiers, and new offerings are shaping the next chapter. The industry is adapting to maturity while continuing to deliver value to fans and artists alike.
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