UK record labels invested £495m supporting artists’ careers and development in 2021 through A&R, marketing and promotion – more than double their investment in 2016.
Figures published by the British Phonographic Industry (BPI), the representative voice for independent and major record labels across the UK shows labels’ investment last year included a record £358m spend on A&R and another £137m. The investment represents 39.2% of total UK label revenue.
The A&R spend, which includes artist advances, creating new recordings, video costs and tour support, was 107% more in 2021 than the amount invested in 2016 of £173.3m.
Over the same five-year period to 2021, UK labels’ total revenue income increased by 42.9%, driven largely by a 51.3% surge in streaming revenue.
Geoff Taylor, Chief Executive BPI, BRIT Awards & Mercury Prize, said: “The UK has been one of the world’s music superpowers since the advent of pop culture, thanks to the combination of our many incredible artists drawn from all regions and nations, and the passion, financial backing and expertise of our record labels.
"During a time when music has returned to growth after years of decline, labels have continued to prioritise investment in artists.
"It is fuelling success for a new generation of UK artists who are embracing the opportunities of this truly connected world, underpinning our leading position on the global music stage.”