Bands Still Need To Sign To Labels, Says Report

A new report from the International Federation of the Phonographic Industry [IFPI] is arguing that record labels around the world are the biggest investor in artists, and that the majority of unsigned artists are still looking to sign record deals. They also believe it an "important" factor to success.

The Investing In Music report from IFPI, who are notoriously staunch in their opposition of online piracy, claims that record companies invest $4.5 billion in A&R and marketing annually, with last year's A&R spending at $2.7 billion – 16 percent of global music revenues. As such, the report argues that the music industry is a word leading industry in terms of research and development revenue.

As part of the report the IFPI compiled a survey of unsigned artists in the UK that found 71 percent of unsigned acts are “aiming” to be signed by a label, with 75 saying that it was “important to an artist's career”. The main reasons given were promotion support (76 percent), tour support (46 percent) and a financial advance (35 percent). These were backed up by a German report by Bundesverband MusikIndustrie, which garnered similar results.

IFPI Chairmain Plácido Domingo argued that governments should take note of the report's percieved findings.

“Copyright laws protecting artists' and producers' rights are being reviewed in many countries,” he wrote. “Investing In Music reminds us of the endeavour, creativity and industry that goes into producing culture. This can never be taken for granted or produced for free. That is why the rights of artists and producers must be paramount in the continuing debate over copyright in the digital age.”

In January this year IFPI's CEO Frances Moore told theMusic.com.au from London that they still needed to 'win over' music consumers in the fight against piracy.

“There's no doubt about it, we have to win the hearts and minds of people on this,” she said. “We're doing a lot on education and awareness on many, many programs… The message we're trying to bring across is, 'This isn't fighting the public, in fact what we're doing is we're trying to preserve an economy on the internet in order to provide jobs, in order to provide a digital contribution to GDP [Gross Domestic Product] etcetera'.

“If we don't get it right on the internet, if we can't drive piracy back then there could be over a million jobs lost by 2015. Think of, in the present climate we're living in, another million jobs or more is a sad thought.”

The report comes after the launch of 'labels' or 'platforms' including Inertia Access, Create/Control and Kobalt Label Services which look to offer support in the form or marketing and promotions, while shying away from recording costs, thus allowing artists to retain ownership of the master recording themselves.

In an op-ed for the UK's Telegraph newspaper Moore wrote, “The positive message from our report is that, for the music industry, the age of self-publishing has been more an opportunity than a threat. The partnership between artists who touch audiences with their talent and the labels that invest in them has evolved and endured.”