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Record firms invested more the $4.5 billion in music in 2015

By Chen Nan | chinadaily.com.cn | Updated: 2016-12-06 16:39

Record companies were the largest investors in music, providing more than $4.5 billion for Artists & Repertoire (A&R) and marketing in 2015, according to a report published on Nov 30 by the International Federation of the Phonographic Industry, representing the recording industry worldwide, in association with the World Independent Network, representing independent labels internationally.

The report, Investing in Music, details record companies' global investments in discovering, nurturing and promoting artists and their music. The report highlights the extensive "behind the scenes" work performed by teams of professionals at record companies supporting these efforts.

It also highlighted that record companies sustained this level of annual investment even as the industry weathered two decades of revenue decline.

Music companies also invest, along with distributors, in developing the infrastructure of the digital market, servicing more than 360 digital music sites globally with more than 40 million tracks.

Jointly introducing the report, Frances Moore, chief executive of IFPI, and Alison Wenham, CEO of WIN, said: "Investing in Music highlights not just record companies' financial investment in artists, but also the enduring value they bring to artists' careers."

They also claim that in the digital world, the nature of their work has evolved, but their core mission remains the same: discovering and breaking in new artists, building their careers and bringing the best new music to fans. These are the defining qualities of record companies' investment in music, they said.

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