MAJOR LABEL DEAL DOLLAR AMOUNT BREAKDOWN FOR A NEW ARTIST The music business is NOT the LOTTERY. That "Dollar and a Dream" mentality will not cut it. Get a Budget! Get a Plan! And Get To Work! The m…

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MAJOR LABEL DEAL DOLLAR AMOUNT BREAKDOWN FOR A NEW ARTIST

The music business is NOT the LOTTERY. That "Dollar and a Dream" mentality will not cut it. Get a Budget! Get a Plan! And Get To Work! The major labels want to do business with artists who have proven MOVEMENTS. They not only want your MUSIC. They want your FANS as well!. The music industry is still a $40 Billion world wide industry. There has been an increased demand for recorded music. A new Investing in Music report from international music-industry trade body the International Federation of the Phonographic Industry (IFPI) concludes that, globally, record companies invested $4.5 billion in A&R and marketing in 2011, of which $2.7 billion was in A&R alone. MAJOR LABEL DEAL DOLLAR AMOUNT BREAKDOWN FOR A NEW ARTIST: 23% of the Major labels' artists in 2011 were new signings. A breakdown of the potential $1.4 million cost for breaking each new act in a key music market was broken out as follows in the report under the heading "Typical investment by a major record company in a newly signed artist:" $200,000 on the advance; between $200,000 and $300,000 on recording; the budget for two to three promotional music videos could cost between $50,000 and $300,000; another $100,000 on support for touring; and up to $500,000 for marketing and promotion. Info comes courtesy of the IFPI Music Report. Although the possible $1.4 million cost represents the high end of the investment, it confirms the labels' financial commitment to nurturing and developing artists "despite declining revenues," Moore said. Helping to put the 16% of music's revenues the music industry spends on A&R in perspective, the report compared other industries' research investments: the global pharmaceuticals and biotechnology sector, for example, invested 15.3% of its revenues on R&D; software and computer services spent 9.6%; while technology hardware and equipment industries devoted 7.8% of their revenues. The Investing in Music report also features the results of a study that concluded that unsigned acts appreciate the positive impact labels can have on their careers. Please note that the typical investment by a major record company in a "newly signed artist" is recoupable