The music industry’s revenue has continued to decline over
the last decade. So why is that the major labels are still spending as much as
16 percent of revenue on artist and repertoire while cutting spending in other
areas? That’s about to $2.7 billion of global recorded revenues. That’s said
to be more than any other industry is spending in this gloomy economy.
Marketing tactics have changed such as digital and social
media while they’re still reaching the same audiences. Revenue has become
heavily dependent on merchandising, licensing of music for TV, film and gaming.
Artist and repertoire spending has dropped only 3.6 percent since 2008 even
though the industry’s value had fallen16 percent says Kristen Schweizer ofBloomberg.com.
The survey below shows that more than 70 percent of unsigned artist still want a record deal. Marketing and promotional support appears to be the leading reason artist want to be signed. That's understandably so with the cost of break your average artist as high as $1.4 million. Independent artist can't afford to spend a fraction of that on marketing their projects. So its up to their management team to creatively get their projects to the next level using minimal resources.
IFPI: Two new surveys, conducted in the UK and Germany in 2012, show more than 70 per cent of unsigned acts want a record deal, with marketing leading the perceived benefits of record company support.
The Unsigned Guide survey (UK)
| Yes | No | |
| Is your aim to be signed by a record company? | 71% | 29% |
| Do you think having a record deal is an important step in developing a successful career as an artist? | 75% | 25% |
| What do you see as the benefits of having the support of a record label? | ||
| Getting upfront financial support in the form of an advance | 35% | |
| Marketing and promotional support | 76% | |
| Getting advice from teams of experienced professionals | 24% | |
| Creative input and guidance | 5% | |
| Support for touring and live performances | 46% | |
| Professional video production | 3% | |
| Help in partnering with potential brand partners | 6% | |
| International expertise and the ability to get to a global audience | 31% | |
| Making contacts with producers, songwriters and other potential partners | 13% | |
| Handling the business and admin, leaving you to the creative work | 26% | |
| Contacts with TV and radio stations | 20% | |
| Other reasons | 3% | |
BVMI study (Germany)
| Yes | No | |
| Is your aim to be signed by a record company? | 80% | 20% |
| Do you think having a record deal is an important step in developing a successful career as an artist? | 65% | 35% |
| What do you see as the benefits of having the support of a record label? | Very important / quite important | Very important |
| Support with marketing and promotion | 95% | 71% |
| TV and radio contacts | 90% | 58% |
| The opportunity to focus on the creative process | 82% | 50% |
| Support with tour planning and live concerts | 81% | 46% |
| Financial support through payment of an advance | 80% | 45% |
