Record labels defy recession to invest $4.5 billion in new music

From Music Week:

Record companies invested $4.5 billion (approx £2.8bn) in A&R and marketing during 2011, despite the global economic downturn.

The figure, which represented 26% of all industry revenues, comes in a new IFPI report on the changing economic of the music business.

The investigation concludes that revenue invested solely into A&R in 2011 stood at $2.7 billion, only marginally down on 2008 (US$2.8 billion), despite an overall decline of 16% in the trade value of the industry globally over the same period.

Revenues invested in A&R have increased from 15% to 16% of industry turnover between 2008 and 2011.

A&R spend has been maintained by labels, despite decline in overall revenue over recent years, with the IFPI concluding that record companies therefore remain the primary investors in artists.

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