Rapper Plan B and Mercury Prize winners Alt-J are also cited in two categories.
"It shows the broad spread of British pop music, " said Alt-J's Gus Unger-Hamilton of the diverse shortlist.
The group joins acts already announced on the bill like Emele Sande, The Script, Two Door Cinema Club and Alt-J.
There was also an increase in sales of albums from other Brit award nominees Taylor Swift, Alt-J, Frank Ocean and Muse.
For the first time, BBC 6 Music has a stage at Latitude and will host acts including Alt-J, Modest Mouse and Beach House.
However this year's winners Alt-J are also proud to call their debut record "an album-y album", designed to be listened to in its entirety.
However Alt-J's experimental art-rock album An Awesome Wave and London singer Jessie Ware's debut Devotion have been tipped for success by rival bookmakers Paddy Power.
She will compete for the best album award - billed as the most prestigious - with Plan B, Alt-J, Paloma Faith and Mumford And Sons.
Indie rockers Alt-J are also up for the contemporary song prize, for the track Fitzpleasure, while their debut disc An Awesome Wave is shortlisted for best album.
Alt-J 's debut, "An Awesome Wave" (Canvasback), mixes alt-rock, electronica, experimental a cappella vocals and folk in a clever album that zigs and zags with each track.
WSJ: Lost in the Trees, Frank Ocean, John Fullbright and Other Best of 2012
Alt-J and Mumford And Sons are also up for best British group, a shortlist that also takes in stadium rock with Muse, teen pop with One Direction and atmospheric indie with The xx.
One hopeful sign: Thursday night's showcase at the Belmont in the Warehouse district featured a dream lineup including Alt-J, Atlas Genius, Frightened Rabbit, Guards and the Joy Formidable the kind of groups that might be associated with indie rock.
Names on the Other Stage include Portishead - almost 20 years after they released their debut album Dummy - along with Smashing Pumpkins, Mercury Prize-winners Alt-J and John Lydon's band PiL. The XX, The Lumineers, Alabama Shakes and Foals are also included on the bill.
The quartet Alt-J, whose "An Awesome Wave" won last year's Mercury Prize as Britain's best album, did much with little on stage as odd two-part vocal harmonies, a gently picked electric guitar, lush synth lines and syncopated percussion coalesced into a distinctive blend that united folk, prog rock, electronica, show tunes and hip-hop.
WSJ: The State of Things | Coachella Valley Music & Arts Festival | Jim Fusilli
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