The meteoric rise of Japanese pop group XG, which has amassed millions of global fans without a single Western label deal, is delivering a sobering message to the UK’s creative industries. While British music executives toast chart successes, the group’s model of artist-driven development, lean production, and direct digital engagement highlights structural weaknesses in the UK’s approach to nurturing talent. For workers in the creative economy, the contrast is stark: British musicians and crew increasingly face zero-hour contracts, undervalued streaming royalties, and a funding squeeze that leaves little room for experimentation.
XG’s trajectory is unorthodox by UK standards. Formed by a Japanese entertainment company, the group built its fanbase through YouTube, TikTok, and independent streaming platforms, bypassing traditional record labels. Their success is emblematic of a global shift where artists retain more control and revenue. In the UK, however, the music industry’s reliance on major-label deals and live performance revenue has left many performers vulnerable. The Musicians’ Union reports that 80% of its members earn less than £20,000 a year from music, with many forced to take second jobs.
The UK creative sector contributes over £100 billion to the economy annually, but regional inequality persists. While London’s West End and global streaming hits generate headlines, grassroots venues in the North and Midlands have closed at an alarming rate. The pandemic accelerated this decline: over 400 grassroots music venues shut permanently between 2020 and 2023. For young artists in former industrial towns, the path to a sustainable career is narrower than ever. The high cost of living, stagnant wages, and precarious work deter many from pursuing creative careers, further entrenching a London-centric, elite-driven industry.
XG’s model also underscores the importance of affordable access to technology and training. In Japan, government investment in digital infrastructure and arts education has enabled artists to compete globally without intermediaries. In the UK, cuts to arts funding since 2010 have reduced music and drama programmes in schools, particularly in disadvantaged areas. The Creative Industries Federation warns that this is creating a ‘talent pipeline crisis’, where the next generation of British stars may never get a chance to develop their skills.
The failure to adapt is not just a cultural loss it is an economic one. The creative industries are a key driver of exports and employment, but the UK’s share of the global music market has slipped. According to the British Phonographic Industry, UK artists accounted for 12.5% of global album sales in 2022, down from 17% a decade earlier. Meanwhile, K-pop and J-pop groups like XG are capturing young audiences, many of whom are British. The government’s Creative Sector Tax Reliefs, while welcome, primarily benefit large production companies rather than individual artists or small venues.
What would a more competitive and equitable creative economy look like? For union leaders and grassroots campaigners, the answer lies in policies that redistribute power and resources. The Musicians’ Union is calling for a levy on streaming services to fund a ‘live music compensation fund’ for grassroots venues. Others demand a national living wage for arts workers, modelled on the Real Living Wage, to stem the exodus of talent to more supportive industries. The government’s Leveling Up agenda, which promised to spread opportunity across regions, has yet to deliver tangible support for the creative sector outside London.
XG’s success is not a threat but a lesson. If the UK creative industries want to compete globally, they must invest in people, not just stars. That means secure jobs, accessible training, and a funding model that supports risk and innovation. Without such changes, the next generation of British talent may find its voice silenced not by a lack of ambition, but by a system that no longer values their creativity.
