2020 | Industry Economics
Labels At Work: The Music Business in the Digital Age | RIAA
Major record labels are still focused on what we do best: finding great artists, helping them reach their creative potential, and connecting them to fans. The difference is that we’re embracing new digital tools to do a better job than ever before.
We’re essentially venture capitalists for music: investing in the great, unknown artists of today so they can become the superstars of tomorrow.
We’re still evolving, but a quick glance over the last decade or so proves that we’re on the right track:
- Over 2,500 digital services licensed and operational today.
- $13.4 billion spent by major labels to find new artists and help them reach an audience.
- $20 billion spent by major labels on artist and songwriting royalties.
- Artist royalties paid by major labels increased over 36% as a share of major labels’ net sales and gross licensing revenue.
- Songwriting royalties paid by major labels increased 44% as a share of net sales revenue.
Source: Recording Industry Association of America