“Record labels stopped investing in Artist Development.”
Though the speed in which new artists come and go may give some good reason to believe the above, a new report released today points to the contrary.
Full story below…
In a report published by the International Federation of the Phonographic Industry, the industry’s annual spending on A&R and marketing now exceeds the $4.3 billion mark, and $20 billion when the last few years are thrown into the mix.
Produced by the independent-label collective WIN, the report concludes that record labels still remain at the top when it comes to investing in artists.
‘Billboard‘ adds:
IFPI’s research also reveals that more than 7,500 artists are currently signed to major labels’ rosters, with tens of thousands more on independent labels. One in five artists on labels’ rosters is a new signing, says IFPI, pointing out that global music industry investment in A&R (16 percent in total) exceeds what the computing, pharmaceutical and biology sectors invest in research and development.
The comparison is perhaps a little unfair, given that they are all vastly different industries with contrasting business models, but it does highlight the huge sums that continue to be spent each year on breaking new artists.
For example, the costs of breaking an act 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.
Most artists who want to make a career from their music still seek a recording deal. They want to be introduced to the best producers, sound engineers and session musicians in the business. They need financial support and professional help to develop marketing and promotional campaigns,” added WIN chair Alison Wenham.
“From my experience in the recording industry, I know very well what a big difference a record label can make to the success of an artist’s career,” Plácido Domingo states in the report.
“The investors in music are vital to the work of artists. They are the risk-takers who win if an artist is successful but lose if they are not; they provide the financial support in advance of recording that others are not prepared to give; they offer skills and understanding of how to reach the consumer in all the ways the digital age allows,” he goes on to say, adding: “Investment in music cannot be taken for granted.
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Quite a bit of money being spent. Too bad they don’t find better artists for what’s allegedly being put out.
There are plenty of brilliant new artists
FKA Twigs is a prime example.
However, basic R&b is done. We need innovators, not imitators.
why brandy and sevyn on their we know their labels didnt spend much on their last albums poor Brandy 7/11 was a snooze fest but Human was my sh!t
I agree, 2/11 was garbage. Brandy’s last hot album to me, was “Never say Never”..then as soon as the Britney era came, she was done.
You TRIWD it! Full Moon is one of the best albums ever!
Britney who? That fake sound they OVERLY SPENT ON? I’m spent as well as her VOICE!!
Tried*** hate auto correct
I prefer the grown up Brandy.
Human > Full Moon = Afrodisiac > Two Eleven > Never Say Never
OMG “Human” was THE S*** TO ME ALSO!! “7/11” gave me the Blues Clues!! & she’s vocally a BEAST!!
Chile cheese, music artists have to recoup every bit of that money…record companies ain’t spending ish unless the artist is unsuccessful…go to youtube and watch Left Eye break it down for ya 😉 #TLC
Right? They “issue” is that artist don’t sell enough for THEM to take more money than they should. I don’t feel sorry for the music bizz.
I’m sorry but TLC wasn’t the best singing group out they came at a particular time in the days of not wanting rap to take over in my opinion I can name 12 groups that will out do them in 15 mins!! Lmbo
Artist will tell you in interviews that the label don’t do crap for them. So where this money going to or who, I don’t know. I guess to Rita, Gags and J.lo.
LOL As if Rihanna hadn´t been the most prmoted artists of the last 9 years non stop, year after year. You always biased.
4.6 billion and over 75% of artist are flopping.I wonder how much it spent during the 80s and 90s.
Agreed. Could you imagine the budgets for Music Box, Like A Virgin, Thriller, & janet.??
I would be liable to believe this if this was 1996 and Fantasy just debuted at number one. Common and Nas both had a budget of not even $10k to shoot their music videos and they are certified legends. Most of these people get a 360 deal with barely 500 as the entire era budget. 2 million+ budgets only applies to Beyoncé, Rihanna, Adele, and maybe Gaga. If you spend money, you make money IE Taylor Swift. And who ever couldn’t get into Two Eleven is missing out. That album is damn near perfect!
http://www.youtube.com/watch?v=wGAQNzCXX-c&sns=em
I enjoyed Two Eleven a lot! I listen to “Without You” daily. “do You Know” shoulda been a single. My fav Brandy album is Human, hands down. She sang her face off on that album!!!
I agree! What makes it bad is that Brandy actually dislikes the Human album! 🙁
Th bigger the artist the less money the label spend on marketing. Their name recognition is publicity. Also, they can get sponsors to finance their project.
If that’s the case, they are doing a horrible job at marketing their supposed artists.
Ashanti is an example of the artist getting 360 deals she turned down seven of them and Brandy is not hurting for money she still and will continue to eat off her past work, Sonja was a beast with them contracts. I just found out that Brandy also gets money from The Parkers as well as Moesha.
did brandy pay that family back remember she is a murderer
A lot of these execs are making poor decisions in choosing which artist they promote tho.
EXAMPLE – ROC NATION/SONY
It is like they just hand Rita Ora EVERYTHING. Why hasnt J Cole been put on Iheartradio Awards and AMA. Why wasn’t JCole’s music promoted on TV commercials like Rita’s flops.
lyrical rappers sell albums in the US.
Ask, Kendrick, Em, and Drake.
U would think Jayz would spend more to promote J Cole …
but they put their money behind this boring singer instead.
EXAMPLE – DEF JAM
Iggy is no lyrical MC. She is the female MachineGun Kelly
It would be smarter for Def Jam to put their money behind Jhene Aiko ( singer/songwriter)
Jill Scott can still sell out arenas,
Maxwell can still sell out arenas
Erykah Badu and D’Angelo can still sell out Radio City Music Hall
Over a decade after their first release these RNB artists can still sell tickets b/c they made singer / songwriter music.
The problem with the music industry is the sorry A&R depts
Really? This is an irrelevant post if they don´t compare these numbers to the numbers they moved 10 or 20 years ago. It could seem like a high figure but compared to past times I´m sure it isn´t. Or at least, it doesn´t show cause industry is dead nowadays and marketing seems poor 🙂
Also, they could choose talented artists to be promoted…
NO SH*T!!!!!! LOL I most say this like 80% of the time when ever I’m on this site. Lol If We as Black people stop acting a hot Ghetto mess & living above our means & start to invest in our own stuff we could do so much great things. Artist like Tinashe & Jojo may not have millions but they have enough to put out YouTube videos to give fans more insight in to who they are keep building a fan bass. And People like Nicki, Chris Brown & Trey all have over a million, there no reason they all can’t use there own money and say Fu*k the record company’s. Like Bey & Taylor does.
First rule of business: Never invest your own money!
Not even Beyonce invests her own money. She uses the budget from her production company to fund her projects not her personal accounts.
The difference between marketing in the 90’s and now is there was a business model to follow when promoting artists in the 90’s. Record labels all went thru the same marketing plan (radio, commercials, billbords, magazines, music stores and maybe a mall tour) to promote a new album.
Now with social media and everything being digital, labels have to be creative when marketing and promoting an album. Unfortunately, it seems that the executives running most of the record labels are not smart or creative enough to compete in this market and therefore most of their artists are paying the price.
Also, Two Eleven was one of Brandy’s best albums. If only Slower and No Such Thing As Too Late (duet w/Bruno Mars) were singles! Ugh!
The record industry needs to stop signing these one hit wonder mixtape artist. These people buy their followers, views, likes, and comments. (Check the app store ane verify their accounts and see who the fakes are). Nowadays, anybody can record music and shoot a video. People have millions of followers, but it has been proven thay does not equal sells. They still flop. So lets get back to artist development, and old school marketing. Lets get a revamped 106 and TRL type show and get back to showing music videos, having good fresh music, raw talent, ect. I am tired of seeing the same acts. I am tired of the same beats, and copy cats.