Report: British music biz invested near £500m in new acts last year
The British music industry invested £497 million (Australian $1.06 billion) in A&R development and marketing into new acts in 2014.
This was according data supplied this week by the British Phonographic Industry (BPI) and Music Publishers Association (MPA).
The high outlay on fresh blood was made possible British music has been highly profitable of late, as the likes of Ed Sheeran, Sam Smith, Coldplay and One Direction stormed global charts.
Figures issued in June 2015 showed that last year British albums and sales generated £1.8 billion ($3.8 million) in sales. One in seven albums sold around the world were by Brit acts, which also accounted for five of the world’s top 10 best-selling artist albums.
As reported in TMN, the British music industry injected £4.1 billion ($8.7 billion) into the economy in 2014.
The number of new acts signed by the three major labels went up 30% to 156. This was a five-year high. In comparison, in 2013, Sony Music, Universal Music and Warner Music signed 130 acts, reported the BPI. The most recent peak was in 2009 with 164 new deals offered.
“It’s no fluke that 2014 was such an outstanding year for British music,” said BPI CEO Geoff Taylor.
“Alongside the artists themselves, the passion and commitment labels show in unearthing, nurturing and developing the next wave of talent is one of the main reasons our music is the envy of the world right now.”
The £497 million figure was made up of record labels’ A&R investment of a new record of £178 million ($$381.4 million) and marketing of £157 million ($336 million), and £162 million ($347.1 million) earned by singer songwriters and composers from publishers, which generated a total revenue of £400 million ($$857.2 million).
The labels’ figures showed that just under half of their revenue went back into signing, developing and marketing British artists.
European Union investment figures showed that the music industry invested 25% more in development last year than the biotech, pharmaceuticals and auto sectors.
Jane Dyball, the head of MPA Group, remarked, “These investment figures highlight why British music remains so successful on the global stage.
“Importantly, these incredible figures also highlight that music publishers, like record labels, make a very substantial annual investment in A&R, further demonstrating the music industry’s colossal contribution to the financial and cultural wealth of the UK.”