For many music fans, 2025 will be remembered as the year of Oasis’ return. Their long-awaited reunion tour dominated the summer, reviving bucket hats and Britpop nostalgia and generating over £300 million worth of ticket sales alone.
But behind the headlines and sold-out stadiums, a far less celebratory story is unfolding in the UK’s live music ecosystem. Only 11 of the 34 grassroots venues that hosted Oasis during their first tour in 1994 are still operating today – a stark example of how unevenly distributed success has become across the industry.
While the biggest artists easily fill arenas and stadiums, small venues and emerging artists are under pressure from a combination of rising costs, changing consumer behavior and government policy. Industry experts warn that the pipeline for discovering and developing new talent is at risk of collapse.
Julia Rowan, head of policy and public affairs at PRS for Music, says the UK’s position as a global music powerhouse can no longer be taken for granted. She argues that while overall live music revenue is rising, the benefits are increasingly concentrated at the higher end of the market, leaving smaller venues unprotected.
Streaming has played a pivotal role in transforming the industry. Platforms like Spotify have made releasing music easier than ever, but they’ve also concentrated revenue among a small number of global stars. For many artists, touring is the primary way of making a living and represents a reversal of the traditional model in which live shows promoted recorded music.
This change helped fuel the rise of the “Supertour.” Taylor Swift’s Eras tour, for example, grossed more than $2 billion worldwide, while well-known artists like Paul McCartney and Bruce Springsteen continue to draw large crowds. In the UK alone, live music generated £6.7 billion in spending last year and attracted 23.5 million music tourists.
However, the success of mega-tours has unintended consequences. High ticket prices – often upwards of £100 or more – eat into fans’ disposable income, leaving less money for smaller gigs. Mark Davyd, chief executive of the Music Venue Trust, says there is a natural limit to how much audiences can spend on music in a year.
“If you pay £150 or £200 for a stadium ticket, that inevitably eats up the budget you need to see new or emerging artists,” he says.
At the same time, grassroots football venues are struggling with sharply rising operating costs. Energy bills, rents, personnel costs and travel costs have increased. The increase in employers’ social security contributions and the higher minimum wage have increased the pressure. Even large venues have felt the impact: James Ainscough, chief executive of the Royal Albert Hall, says the NI increase alone has increased venue costs by £375,000 a year.
At smaller venues the situation is more precarious. The Music Venue Trust estimates that the average profit margin for basic venues is just 0.5 percent. More than a third of operators no longer pay themselves at all, many rely on second jobs to keep venues open.
Davyd describes these venues as the industry’s “research and development labs” – essential spaces where artists learn their craft and audiences discover new music. Without them, he warns, Britain risks losing its ability to produce future global stars. This concern is already reflected in the data: in 2024, for the first time in more than 20 years, no British artist appeared in the global top 10 singles or albums, according to IFPI figures.
There are signs of collective action. A voluntary ticket levy has been introduced, allowing arenas and stadiums to make a small contribution towards tickets to support grassroots football venues. The Royal Albert Hall was the first major venue to introduce the levy, while the O2 Arena has agreed to share the revenue when new artists perform there.
The government has expressed support for the levy and is seeking to limit resale prices for tickets. But critics argue that recent tax and business rate changes are undermining these efforts. As Ainscough puts it, the industry is facing a “perfect storm” of challenges.
Industry leaders emphasize that creativity remains abundant in the UK. What’s missing, they argue, is a financial and political environment that allows this creativity to flourish beyond the biggest stages. Without intervention, they warn, the next Oasis may never get the chance to be heard.
