Investing in Music: Record Labels and How They Can Help You!
‘Most artists who want to make a career from their music still seek a recording deal. They want to be introduced to the best producers, sound engineers and session musicians in the business. They need financial support and professional help to develop marketing and promotional campaigns’. Alison Wenham, chair of WIN
We know you’re interested in making music and are hoping to make the most of your release with Spinnup. One of the big questions you’ve probably thought about is whether you need a record company and what they actually do. Record companies exist primarily to discover, nurture and promote artists and, according to global industry bodies IFPI and WIN, they also invest around $4.3billion worldwide in the business of promoting artists and repertoire (A&R), marketing and promotion. So how do they do this and how can they help you? As explored in a report published by IFPI and WIN, the record label is..
1) THE RISK TASKER
Firstly, record companies remain the largest upfront investors in artists’ careers. They ‘shoulder the financial risk inherent in trying to break a new act’ and, in order to see the artist succeed, the label must invest a significant amount of time and money into each campaign. Due to the ever-evolving success of online marketing, the industry has slowly concentrated more on marketing digital platforms which enable them to target more individual groups of consumers using creative strategies and clever promotions. In an era highly influenced by the likes of YouTube and Vevo, Record companies typically produce two or three videos per album meaning recording costs can vary widely between individual projects. Yet the costs of online marketing are increasing and record companies are also responsible for advertising across television, radio, print and outdoor media to drive awareness of their artists. Furthermore, the recording industry is global in scale and exports artists internationally; but it also heavily invests in local repertoire. In 12 of its leading markets, local repertoire accounts for more than 70 per cent of the sales of the top 10 albums.
2) THE SUPPORT NETWORK
In order to concentrate on making music (and performing it!) artists often need to quit their day jobs and therefore require financial support need professional help to develop marketing and promotional campaigns. Record labels provide bespoke support by sourcing and nurturing teams with the experience, expertise and dedication to help you catch the attention of the broadest range of audiences. With access to hundreds of digital partners, the label can create digital campaigns, develop new platform services, provide artists with access to in-depth consumer insight, data research and analysis, engage in social media promotion, direct consumer campaigns and more.
Furthermore, the record label aims to support you at every stage of your career. Darcus Beese, president of Island Records, reinforces this: “The challenge for us is to get to album three. The first album is a given, the second is the hardest thing an artist and label can make and the third means you’re on your way to a career. It’s easy to burn brightly and have early success, but can you sustain that for a decade or longer? That’s the business I am in.”
3) THE BRAND PROMOTER
The relationship between artist and record label is of paramount importance in relation to artist exposure and revenue. Record companies not only help you build your brand and vision, but can offer album and song writing advice personal to YOU.
To read more about label investment and how this can help you, click here.