Industry body the BPI has published its latest analysis of how much British labels are spending on A&R, marketing and promotion.
The figure for 2021 is £494.8m ($604.8m), which it notes is a.) double the investment back in 2016, and b.) 39.2% of total UK label revenues. The total breaks down into £358.1m of A&R spending and £136.7m on marketing and promotion.
“The A&R spend, which includes artist advances, creating new recordings, video costs and tour support, was 106.6% more in 2021 than the amount invested in 2016,” noted the body. “Over the same five-year period to 2021, UK labels’ total revenue income increased by 42.9%, driven largely by a 51.3% surge in streaming revenue. This means labels’ A&R spending grew at nearly two-and-a-half times the rate of their revenue rises.”
As ever, this research aims to bolster the BPI and its members’ case for their investment in artists, amid the ongoing debate (not to mention inquiries, regulatory studies etc) around artist royalties and label revenues.
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