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The music industry, in 2013 alone, invested around $4.3 billion worldwide in artists, marketing and promotion. This amount represents 27% of total recorded music industry revenues, which has increased from the 26% invested in 2011. Between 2009 and 2013, the IFPI estimated that record labels will have invested over $20 billion in artists and marketing. In 2013, there was an estimated 7,500 artists on the lists of the three major record companies alone. There are tens of thousands more artists signed to independent labels.
Many record companies have been estimated to be investing around $4.3 billion worldwide in artists each year and also in repertoire (A&R) accompanied with marketing. This represents around 27% of the industries revenues. Together major labels have around 7,500 artists on their lists and have more than tens of thousands signed to independent labels. The newest talent is what keeps the industry alive and interesting. A fifth of these artists were most probably signed in the previous 12 months.
Investing in music may not be the most obvious of choices, but can be a good investment. Music executives behind Kaiser Chiefs and Primal Scream are backing a new website that allows for fans to also invest financially and in the new artists. Bandstocks allow for the public to buy a stake in an artist in £10 increments. When funding reaches its highest level, £100,000, the money will be released for the use in recording albums. Investors will receive a copy of the artist’s album and will be credited on the CD sleeve whilst also receiving a percentage of the profits from its sale and licensing. Investors will also be prioritised when it comes to booking tickets and are given prioritised opportunities to buying limited edition releases.
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