Translation from the article "Record companies: Powering the music ecosystem" - IFPI
In today's dynamic music ecosystem, the role of record labels is critically important, as the leading investor in the music industry and as partners / collaborators with artists.
33.8% of annual revenue is invested back into the music industry
$ 5.8 billion is invested annually in A&R * (Artist Search & Management) and Marketing (Marketing)
$ 1.7 billion is invested annually in Marketing
$ 4.1 billion is invested annually in A&R
* (A&R stands for Artists & Repertoire - literally means Artists & Performers)
Record labels provide exceptional support to the artists
Record labels can provide their artists with the following:
Human resources and industry experts to consolidate the Artist team's team when needed
Investments to support the realization of the artist's artistic vision
Professional opinion to "penetrate" into other potential markets in the world
Industry relationships to connect artists with other talented creators and artists.
Support with the production and recording of artist tracks
The collaboration on a global scale helps to reach fans around the world
Parts in a record label
Department managing and selling products other than record income (Non-record income)
They help create unique / unique products for each artist, and organize to sell those products at live performances or through the artist's website.
Selling directly to fans | Products go by artist
Artist Search and Management (A&R)
They look for artists to sign exclusive contracts with record labels that can provide creative and commercial expertise, as well as financial support for the artist's music creation.
Talent Search | Sound recording | Mix | Talent Development | Record Development | Find songs | Studio cooperation
Business affairs & Legal
They work with all partners in an artist's career
Contract | Partnership
Commercial services
They are responsible for artist sales from actual sales (albums, singles ...), digital music releases and streaming.
Actual sales | Digital sales and streaming volumes | Sales report | Analysis of charts and data
Marketing department (Marketing)
They plan multimedia campaigns, which facilitate the artist's image development on both online and real-world platforms.
Advertising (billboards, advertising products on TV) | Sales monitoring | Launch marketing campaigns
Copyright and trademark department (Sync / Brand)
They work with artists to collaborate with like-minded brands / brands, match the artist's image and help the artist connect with fans.
Co-branding | Creative Cooperation | Cooperation opportunities
Video production
They are an internal team within the company, comprised of video production professionals who collaborate with artists on everything from video concept to video concept to director collaboration.
Ideas | Music video (MV) | Produce video content for social networks
Creative Services (Creative Services)
They help artists develop their personal images and create highly artistic designs / images for use in albums and music videos.
Image production | Art design for the album | Packaging design
Public relations department (Publicity)
They support the development of the artist's image in many media.
TV | Occurrence in the media | Website | Social Network
Image promotion department (Promotion)
They help the artist's music products reach fans all over the world
Promote recordings in online music playlists | Promote music on Radio | Photo taking | Set up promotional schedules
Data insights
They report in detail metrics / data such as streaming and global reach to help artists choose their direction of growth.
Data Analysis | Increase the reach of the campaign
Catalog department
They ensure that the artist's music products still have plenty of opportunities to reach listeners 18-24 months after release.
With its extensive network of creative teams, record labels have a responsibility to help an artist thrive at every step of their musical journey.
Record labels act as a partner to help artists achieve both commercial and creative success, they provide an extensive network of creators, artist support and development, helping Artists reach out and connect with fans in more ways than ever before.
How an artist collaborates with a record label
New models and ways of working mean that artists have more choice and flexibility in the way they create their music.
Here is an example of an artist's collaboration with a record label:
Artist Search & Management (A&R)
They look for artists to sign exclusive contracts with record labels that can provide creative and commercial expertise, as well as financial support for the artist's music creation.
Marketing & digital (Marketing & Digital)
They plan multimedia campaigns that facilitate the artist's image development on both online and real-world platforms.
Copyright & Trademark Cooperation (Sync & Partnership)
They work with artists to collaborate with like-minded brands / brands that match the artist's image and help the artist connect with fans.
Global distribution division (Global Distribution)
They manage and track the artist's music product distribution, including actual parts (albums, singles) or digital music and streaming.
Creative department (Creative Teams)
They help artists develop their personal images and create highly artistic designs / images to be used in albums and music videos.
Press & Public Relations (Press & Publicity)
They ensure the transmission of information about the artist along with the music product in the media, radio and television media.
Global reach parts (Global Reach)
They promote the image of the artist globally by bringing the artist's music to new "lands", in order to increase the number of fans around the world.