IFPI Report Shines Light On Labels

A new report published by the IFPI has claimed that labels remain the largest investors in music, investing more than US $4.5 billion for A&R and marketing in 2015.

The new ‘Investing In Music’ report, which has been put out in association with the World Independent Network (WIN), looks at record companies’ global investment in uncovering, nurturing and promoting artists and their music.

According to the report, record companies invest an average of 27% of revenues back into A&R and marketing, totaling US$4.5 billion in 2015. The report claims that record companies have managed to sustain this level of annual investment in spite of two decades of revenue decline across the industry.

Interestingly, 16.9% of those revenues were put into A&R, perhaps demonstrating that the death of the traditional record label and A & R has been greatly exaggerated.

Elsewhere, the report found the typical cost of breaking a worldwide-signed artist in a major market like the UK or the US to be between US $0.5 – $2 million. For a more detailed breakdown of where the spend goes, go here to download the report.

Jointly introducing the report, Frances Moore, Chief Executive of IFPI and WIN CEO Alison Wenham, speaking in tandem said:  “Investing in Music highlights not just record companies’ financial investment in artists, but also the enduring value they bring to artists’ careers.  In the digital world, the nature of their work has evolved, but their core mission remains the same: discovering and breaking new artists, building their careers and bringing the best new music to fans.  These are the defining qualities of record companies’ investment in music”.