AIM CEO Gee Davy has outlined some big challenges for the independent sector, as well as some potential solutions.
Speaking at the AIM Connected conference, the leader of the UK Association of Independent Music launched a campaign calling on the government to work with the trade body on an “urgent, evidence-led investigation of the economics of recording and releasing music”.
Davy was speaking at a time of increased optimism around government support for the sector, including the recently unveiled ‘Turn It Up’ Music Plan.
The AIM Connected conference featured Davy in conversation with Michael Dugher (pictured), the government’s new ‘music champion’, an appointment made alongside the Music Plan.
Praising independent music companies as the "engine room of the music industry", Dugher framed the role as an effort by the government to prioritise music by creating a bridgehead between Whitehall and the industry.
“After a generation of lobbying for music to sit at the heart of UK government planning, as it sits at the heart of all of our lives, we have now seen recently a recognition of music’s place as a central part of the UK’s economic growth, followed by the first government policy outline to support it, with the Turn It Up Plan,” said Davy. “This is a fantastic starting point but there is work to do.”
While welcoming the initiative from the government, Davy said more detail was needed to ensure the plan can be a genuine help for independents’ efforts to back emerging talent.
“Independent labels are taking on this risk while facing severe cost pressures on all sides, from post-Brexit export systems, US visa increases, inflation and employment cost hikes to accelerating fraud, and algorithmic shifts which actively reduce early-stage streaming revenues,” said Davy.
Describing the current political climate as a unique window for the sector, Dugher said: "We genuinely do have now a Prime Minister who is the most pro-music that certainly I can ever remember."
Urging the industry to act, he added: "If you want something, you've really got to fight and argue for it. But you will be knocking on an open door this time."
TAX BREAKS
AIM’s CEO took the opportunity to reiterate her call for tailored tax breaks like other creative sectors.
To illustrate her point, Davy raised the lack of UK talent in the IFPI Top 10 global rankings for albums and singles in 2025 (Lola Young’s Messy just missed the global Top 10). Only three years ago, British artists occupied more than a third of the places across the global Top 10 singles and albums charts.
“If we care about the future of British music, that should concern all of us,” said Davy.
When we look at our creative peers in film, TV, video games and orchestras, all have tailored tax reliefs to incentivise growth and de-risk investment
Gee Davy
“When we look at our creative peers in film, TV, video games and orchestras, all have tailored tax reliefs to incentivise growth and de-risk investment,” she added. “Recorded music is the outlier and independent music lacks the budgets for economists to create the data points to back up the needs that are clear to those of us within it.”
As an example of independent music’s potential impact, Davy suggested that targeted support for the sector could help struggling recording studios, which recently missed out on the business rates VAT cut – an issue addressed by the Music Producers Guild in an op-ed for Music Week.
“Independent music is one of the main sources, keeping these rooms open and their engineers and other workers operating,” said Davy. “We have a ‘hunch’ that studio facilities are, in part, in trouble because independent labels can’t afford to book them due to rising costs and falling revenues.”
Admitting that a ‘gut feeling’ is not enough, Davy said data is key to driving the independent sector forward.
“We need an expert data-led investigation, and that’s why AIM’s primary call to the UK’s government today is to work with us on an urgent, evidence-led investigation of the economics of recording and releasing music,” she said. “We believe this will reveal the need for a targeted tax scheme to supercharge new music creation, help the sector through this period of upheaval and create a resurgence of British music for music scenes across the UK.”
During his discussion with Davy, Dugher challenged the industry to "get much better at data" to prove its economic worth to Treasury and business ministers, arguing the sector needs to "monitor what is actually happening in different parts of the country, so that we know what success looks like and how we ensure that that does really happen in every postcode".
TERMS OF TRADE
In her speech, Davy suggested the “challenging environment for independent music businesses has only increased”.
One such area is the recent increased costs faced by exporters to the EU.
A flat €3 customs duty fee is now applied per product type for labels selling physical music and merch to the EU for low-value shipments.
“When we look at what has long been our closest export market, the EU, the situation is becoming critical,” said Davy. “Direct-to-consumer sales are a crucial revenue stream for independent labels and artists, helping drive physical revenues over £250 million this year.”
When we look at what has long been our closest export market, the EU, the situation is becoming critical
Gee Davy
It’s a formula that negatively impacts the bulk of music exports to customers in the bloc – as identified in our recent joint op-ed by AIM and and UK Music.
“The only way for independents to handle that is to stop shipping to the EU or pass it onto the consumer and that means lost fans,” added Davy. “Not just for that single artist, these are fans lost to future artists too.”
She stressed that “music is not a generic, interchangeable commodity”.
“Under the Brexit Trade and Cooperation Agreement, cultural products are supposed to be exempt from such things,” said Davy. “We are looking to the UK government to act immediately to protect the independent music sector, the cultural high streets of the UK, by ensuring the EU enforce that cultural exemption at the upcoming UK-EU Summit.”
RESPONSIBLE AI
Of course, Davy addressed the ongoing developments with AI in her speech and the defence of artists’ rights.
“AI is no longer a future issue, it is suddenly a current one,” she said. “There are tremendous opportunities – from super-powering businesses… to new fan engagement tools and potential new revenue streams. But none of these opportunities need the wholesale ingestion of generations of human creativity, the hoovering up of music for AI training without permission or remuneration to achieve these positive outcomes. Nor does it need to generate an endless stream of derivative content that devalues human creativity and fuels streaming fraud.”
Davy suggested that the “best actors among the AI sector are hamstrung in their mutually beneficial growth by the lack of government enforcement against the bad actors”.
AI licensing is gathering pace with Suno now launching its V6 models in partnership with Warner Music Group, Believe and BMG. Meanwhile, Merlin is licensed with Udio for the independent sector.
“The government’s Music Plan made a very welcome statement that AI must license the music it uses,” said Davy. “Now the government must follow up by strongly backing intellectual property rights, ensuring no exceptions and enforcement with teeth, to boost personality rights, and to ensure opt-in consent and fair negotiated remuneration are non-negotiable for British music.”
Ahead of this month’s Independent Music Awards, the AIM CEO concluded by urging members to borrow from the government’s own messaging and ‘Turn it up’ when it comes to making the case for indies.
“I am urging all AIM members to email and speak to your local MPs,” she said. “Tell them about your businesses, your artists and your economic reality… Or tell us about your signings, successes and situation and help AIM to help you. Share your stories, show them the widespread benefits that happen when an independent label has the economic headroom to actually break an artist.”
Look out for our new interview in the next issue of Music Week with Musicians’ Union general secretary Naomi Pohl, who discusses her hopes for greater involvement from ministers.
PHOTOS: Jerome Barnes
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