22.01.2025: As part of UK Music’s This Is Music report into the financial health of the sector, we explore some of the big challenges facing our world class recording studios.

Recording studios are a key foundation in the artist development process and the grassroots ecosystem but have felt the pinch in what has been and continues to be a challenging market. A combination of stagnant fees and rising costs has created an incredibly tough environment for recording studios, whose world-class expertise often makes the difference in achieving global success.

Recording studio clients include labels, publishers, managers, and artists. UK recording studios also attract international clients, particularly from the USA. Some bigger studios also count film and TV companies among their clients, both in the UK and internationally, with a particular emphasis on the USA and Hollywood. UK Music has reported significant challenges in the studio sector over the past few years, and these challenges remain.

The key issues are:

1. Fees. One studio commented, “We need the ability to increase our rates in line with rising costs, as we’re at risk of moving below our breakeven point in the very near future.”
2. Business rates. Every studio, large and small, that engaged with us cited business rates as a major issue and one of the biggest contributing factors to increased costs.
3. Threats to international revenues. For example, the SAG-AFTRA strike in Hollywood negatively impacted some studio in 2023, and this continued into 2024.

Brexit has also impacted studios, with fewer EU clients and fewer US clients using the UK as a base for EU tours, and therefore not booking UK recording studios during the touring season.

You can read more on This Is Music here.