Breaking a New Artist in the Digital Space: Odds, Facts, and Figures!

A simple Internet search for new artists yields millions of highly (and not so highly) talented artists trying for their shot of fame, or at least trying to make a living off of their music. But in the music industry, talent alone is not enough. In order to get the attention of major labels, and often times indie labels as well, an artist must remain established insofar as the artist has a substantial fan base.

The digital age has allowed underground and indie artists to reach bigger audiences. The expanded reach is boundless—transcending city, state, and international boundaries. Although artists now have the advantage of gaining vast recognition that was difficult, if not impossible, a decade ago, they are equally faced with an increased amount of competition within the aspiring talent pool. Setting one’s self apart from other artists, thus catching the attention of record labels and the media, takes risks, money, time, and a flawless marketing plan.

To begin, the artist must have star quality. All elements of the artists (i.e., music, personality, stage presence, etc.) must showcase talent, charisma, and longevity. Furthermore, artists must show progression and the ability to grow and develop as both a talented artist and a captivating entertainer. With the interactivity and fast-paced nature of the Internet, especially with generations being raised online and living their entire life connected, artists are only successfully if can they can build a constant profile outside of their music.

In the mass consumption nature of digital media, an artist’s profile must provide up-to-the-minute promotion, be increasingly changing, and adequately entertain to retain the short attention spans of the modern music fan. Artists must consistently put on great tours, sell fresh merchandise, and master the latest trends in online interactions such as video blogs, streaming shows, and interviews, social media, etc.

Once an artist has gained a substantial fan base and gets signed to a record label, the artist must then work even harder to gain media attention. A common misconception is that getting signed to a record label is the “be all and end all” to stardom, which isn’t true. Major labels can have a roster of up to 4,000 artists; the number of artists signed to indie labels can be in the millions.

According to International Federation of the Phonographic Industry, one in four artists signed to a record label is within the past 12 months. Record companies in the United States also spend an estimated $5 billion per year developing and marketing new artists, with about 16% of their annual revenues going to artists and repertoire and 13% on marketing. In other countries, such as the UK, this figure is often higher with A&R reaching up to 23% of the record companies’ revenue.   Surprisingly, however, American record companies on average spend considerably less on research and development—only an estimated 4.4% of annual revenues—as compared to other industries highly focused on R&D.

Once an artist signs to a label, record labels spend significant money to break that artist to the world.  According to Ged Doherty, Chairman, and CEO of Sony BMG Music Entertainment for UK and Ireland, it takes upward $1.5 million to break a pop act into one country, with rock acts costing record labels around $1 million.  The average cost to break a new artist is broken-down as such: $200,000 advance so that the artist can focus on making music and developing his or her artist persona, $200,000 in recording expenses, $200,000 to film three professional videos, $100,000 for tour support, and $300,000 on marking and promotion of the artist.

So many of you guys are asking what’s next! We have provided a few tricks to help you out if you follow the blueprint!