Recent data from Live Nation, Bandsintown, MIDiA and the IFPI confirms that, for the first time ever, developing artists are key drivers of industry growth.
As the global music market is expected to explode in the next few years and pass the $100 billion mark, according to Goldman Sachs, developing artists have increasingly become the focus of labels, streaming services, brands and promoters -- all of whom are eager to discover and partner with the next rising star. Recent data confirms that, for the first time ever, developing artists -- including DIY musicians and artists without labels -- are key drivers of industry growth.
Last month, Live Nation announced impressive Q2 earnings and chairman/CEO Michael Rapino specifically touted the performance of artists outside of their top 100, stating, "Ticket revenue from concerts outside our top 100 artists is up 32% so far this year, demonstrating that the demand for live music is strong and growing from the largest stadiums to the local clubs."
On the recorded-music side, labels are investing more than one-third of their global revenues (or $5.8 billion) in A&R and marketing each year, to break, develop and support new artists, according to the IFPI's 2019 Global Music Report 2019. Additionally, independent labels are now the fastest-growing sector of the global recorded music industry, according to the 2018 Worldwide Independent Market Report.