Record Label Spending On A&R Rises Sharply Finds New Report
November 12, 2012 at 6:18 AM (PT)
A new report from the INTERNATIONAL FEDERATION OF THE PHONOGRAPHIC INDUSTRY finds record companies have defied the global economic downturn to invest $4.5 billion annually in A&R and marketing. The "Investing in Music" report notes, "Record companies remain the primary investors in artists, maintaining A&R spend despite declining overall revenues in recent years. Labels spent $2.7 billion in 2011, only marginally down on 2008 ($2.8 billion), despite an overall decline of 16% in the trade value of the industry globally over the same period. Revenues invested in A&R increased from 15 to 16% of industry turnover between 2008 and 2011."
Music companies invest a greater proportion of their global revenues in A&R than most other sectors do in research and development, found the IFPI.
IFPI CEO FRANCES MOORE said, "Investing in Music highlights a simple truth -- that behind the highly visible world of artists who touch people's lives there is a less visible industry of enormous diversity, creativity and economic value. This report shows the role record companies, major and independent, play around the world in discovering, nurturing and promoting artistic talent."