Major Labels Still Invest in Music (Kinda)
(Click on image to enlarge)
The
IFPI recently released a report that included the typical investment by
a major record company in a newly-signed artist. According to the
report, major labels still invest a hefty amount ($750,000-1.4 million)
in new artists.
On Music Think Tank, Hoyt Emerson looks at the numbers
and breaks them down for an indie act. Looking at the numbers, do you
think major labels could be more successful in pushing smaller, touring
groups instead of putting all their eggs in one basket?
“Indie
bands thrive on having personal relationships with their fans. Knowing
them and staying in touch with them. This can be done insanely cheap.”(Read On)
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Those numbers look “unrealistically” high. In any case, yes I do believe labels need to focus more in touring, considering more than 90% of the artists’ revenue comes from shows. Especially now in the streaming world, where one Spotify stream is 1/200th’s (even smaller according to other sources) of one download.