This report is about record companies’ enduring value to music. In the digital world, the nature of their work has evolved, but their core mission remains the same. It is the mission of discovering and breaking new artists, building their careers and bringing the best new music to fans. These are the defining qualities of record companies’ investment in music.
A record company works with a constellation of different teams, all centred around the artist.
Music companies invest US$4.5 billion annually in discovering, nurturing and promoting artists.
Record companies invest heavily in local music, helped by a streaming world that has transformed the opportunities for local acts to reach fans.
Record companies annual investment breaks down into two primary areas:
Record companies invest more than US$1.7 billion annually in marketing their artists. They also assign their own expert teams to create and deliver the campaigns that break their music worldwide.
In addition to investing directly in artists, music companies also invest, along with distributors, in the fast-developing infrastructure of the digital market.
The record company’s investment is the seed that can build a career, generating an array of other revenue streams.
Anitta, Photo courtesy of Warner Music Group
Li Ronghao, Photo courtesy of Warner Music Group
Justin Bieber, Photo courtesy of Def Jam Recordings
The 1975, Photo courtesy of Universal Music
Sia, Photo by Mary Ellen Matthews
Maitre Gims, Photo by Fifou
Sven Alias, Photo by Ruud Baan