Music NewsNewMusic News: Who Say’s Record Labels aren’t Investing?

Ed-Sheeran-x-ed-sheeranIt’s has becoming knowledge that in the digital age music companies are no longer investing into artist development.  This may be a false claim as IFPI just released some fact that suggest differently.

According to Investing in Music report that was released on Nov 24th record companies’ annual spending on A&R and marketing now tops $4.3 billion and totals more than $20 billion over the past five years.

Some of the case studies for this project included some of the top stars of our current time. They include LordeEd SheeranMKTOPharrell Williams and 5 Seconds of Summer. Record companies are still the go to investor into artist. Last year record companies invested 27 percent of their revenue in A&R and marketing, up from 26 percent in 2011.

The breakdown to break an artist in a major market is between $500,000 and $2 million, IFPI states. A typical breakdown of costs is an advance of between $50,000 and $350,000. Recording spending averages between $150,000 and $500,000, with video production costing anything from $50,000 to $300,000. Tour support can drain the budget of an additional $50,000 to $150,000, while marketing and promotional costs are between $200,000 and $700,000.

Check out Billboard.com for the full article.