Do you know how much money a record label has to invest in order to transform an anonym person in to a rock star?
Maybe you thought about it at some point, correct? Even though there’s an endless amount of pre-requisites for an aspiring musician to get to conquer the international markets, the International Federation of the Phonographic Industry (IFPI) has given a number: 1 million dollar nonetheless. This is what it costs to get an artist to break into the Entertainment business.
According to the report “Investing in Music”, released by the IFPI, and based on studies done in Europe, Asia and North America, Music labels refresh 25% of their inventory of artists every year, which comes down to a total of 1,000 artists and they invest a 30% of their revenue on promotional efforts to make them international stars.
The IFPI claims that “one of the biggest myths about the digital age is that artists no longer need record labels. The internet allows them to reach their public directly, the myth goes. Live music and other revenue sources, like merchandising and advertising, will do the rest. Yet the reality is, in fact, completely different. A small minority of artists, mostly well-known, established acts, achieve success through this DIY route.”