IMI lauds record labels for being the largest investors in the Music ecosystem

image-IFPI CEO lauds record labels for supporting artists-Mediabrief

With US$5.8 billion global yearly investment in combined A&R & Marketing (33.8% of revenues), record labels remain leading supporters of music and artists

In today’s dynamic global music ecosystem, the role of the record label as the leading investor in music and partner and collaborator with artists has never been more important.Record labels invest US$5.8 billion in artists worldwide through combined Artists & Repertoire (A&R) and marketing annually, according to IFPI, representing the recording industry worldwide.

IFPI has lauded the role of record labels in helping artists and their music achieve creative and commercial success, with strong investment in the artists and their music.

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Record labels invested US$4.1 billion in A&R and US$1.7 billion in marketing for artists and their music in 2017 for a combined total of US$5.8 billion. This equates to approximately 33.8% of global recorded music revenues invested annually into breaking, developing and supporting artists around the world.

These figures reflect a continuation of labels’ commitment to artist investment. When last reported in 2015, the combined investment was US$4.5 billion (reflecting a 3.1% increase from 2015 to 2017), or 27% of revenues at that time.

A&R – the record industry equivalent of R&D

Recorded music is an exceptionally investment-intensive business. If A&R is considered to be the recording industry’s equivalent of other industries’ Research and Development (R&D) then the proportion of record company revenue invested in this area (23.9%) is higher than virtually any other industry.

Record labels provide artists with unique support

This investment of financial resources is bolstered by that of human resources – teams of highly creative and driven individuals within the record companies. Together, this global network of teams (including, but not limited to, A&R and marketing) work together with artists to help turn their creative ambitions into a reality.

IFPI also recently launched  an interactive microsite focused on the role of a record label and the specialist teams that work in partnership with artists.

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Images, graphics courtesy IFPI, IMI

How an artist works with a record company/label

New models and ways of working mean artists have more flexibility and choice in how they create their music than ever before. Here is just one example of an artist’s collaboration with their record label:

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image-Frances Moore-CEO-IFPI-Lauds record labels for supporting artists-Mediabrief-3Frances Moore, chief executive of IFPI, said: “Record labels are trusted partners, collaborators and a driving force helping artists to achieve their creative vision and commercial success… they are also the leading investors in music.

“In today’s competitive music market, the role of a record company has never been more relevant. Whilst artists have a myriad of choices in how to develop their career, a record company offers unique, unmatched support.

“As the industry continues to grow and develop, so too does the investment from record companies – not only in developing and breaking artists but in the people and infrastructure that enable this to happen all over the world.”

IFPI is the organisation that promotes the interests of the international recording industry worldwide. Its membership comprises some 1,300 major and independent companies in almost 60 countries. It also has affiliated industry groups in 56 countries. IFPI’s mission is to promote the value of recorded music, campaign for the rights of record producers and expand the commercial uses of recorded music in all markets where its members operate.

In India, Indian Music Industry (IMI), the non-commercial and not-for-profit organization, is affiliated to the International Federation of Phonographic Industry (IFPI) and is registered under the West Bengal Societies Registration Act. IMI members include major record companies like Sony Music, Saregama India Ltd., Universal Music (India), Tips, Venus, Times Music, Aditya Music and several other prominent national and regional labels.

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