Live music in the UK: what’s the state of the industry?

Almost 20 million people attended live music in the UK in 2023, yet two grassroots venues closed every week that year.

Charlie Meyrick at LSE lays out the economics of this contradiction: rising energy, staffing and rent costs; shrinking post-pandemic audiences among younger cohorts; and a cost-of-touring crisis shaped by Brexit customs requirements and lost EU revenue, with artists earning under £25,000 losing almost half their EU income.

Policy options covered include an arena levy (with an inelastic demand argument to justify its feasibility), targeted VAT cuts, and the agent of change planning principle.

A gift for market failure teaching: externalities, barriers to entry, winner-takes-all dynamics, and government intervention all appear in one highly engaging context. Very accessible!  Read here