Record companies reinvest 16% of revenues in discovering new artists
This percentage, which represents $2.7 billion in expenditure worldwide, is particularly high, according to the International Federation of the Phonographic Industry (IFPI).
In its study Investing in music (2012), the IFPI compares this revenue percentage to the amounts spent on research and development in other sectors. With 16% invested in “Artists & Repertoire” (A&R) activities, the music sector ranks first, ahead of the pharmaceutical and biotech (15.3%), software and IT (9.6%) and automotive (4.1%) sectors.
Find further information on music industry investments in the IFPI Investing in Music report.