Investing in the music

Local acts benefit from share of US$5 billion annually, argues economist

By Steven Jackson Observer writer

Friday, March 19, 2010

Jamaica's share of the US$5 billion (J$448 billion) annually invested by international record labels in artiste development may not be in decline, argues economist and entertainment manager Evon Mullings.

While admitting that industry data is lacking, he noted that the increase in the number of entertainment entities and no obvious decline in music production would suggest continued investment in artiste development.

"Record production remains high and the emergence of new artistes has not declined, which may indicate investment in new talent locally has, in general, not declined," argued Mullings who is general manager at Jamaica Musical Society (JAMMS). Comparatively, he said world-wide, record labels are losing money and have reduced their spend on artistes. Mullings' comment follows the release of the Investing in Music report by the International Federation of the Phonographic Industry (IFPI) in collaboration with design company WIN. The report stated that record companies are ploughing about 30 per cent of their sales revenues -- around US$5 billion world-wide -- into developing and marketing artistes. This included an estimated 16 per cent of sales revenues that was spent on artiste and repertoire work (A&R). The investment significantly exceeds the proportionate research and development (R&D) expenditure of "virtually all other industries", the IFPI stated. It added that record labels spend typically US$1 million ($89.5 million) individually for over 4,000 pop acts annually to break them in major markets. IFPI represents the recording industry world-wide with some 1400 members in 66 countries and affiliated industry associations in 45 countries.

The report did not disaggregate data on Jamaica, but Mullings asserted that if the "significant growth in recording studios, in recent years" is used a gauge on gateways for new artiste development, then access has not reduced.

"Whether this has translated into more real investment in artistes' careers is hard to say," he confessed.

Mullings stated that the report is relevant to Jamaica as some locally-based artistes -- Beres Hammond, Dennis Brown, Mad Cobra, Shabba Ranks, Richie Stephens, Beenie Man, Patra, Super Cat and Tami Chynn -- had been signed to major labels.

"The relationship between the major label and the local artiste is sometimes short-lived for many reasons, including an inability of the major label to appropriately understand and market local talent internationally," he stated. "So there is some relevance as it shows to local artistes what they can expect from a major label if they are signed. Note not all artistes signed to major labels get the same deal, as many new artistes are only signed to 'development deals' which are less lucrative than a proper recording deal."

The report stated that a typical US$1 million (89.5 million) record deal includes: US$200,000 for advance; US$200,000 for recording; US$200,000 for three videos; US$100,000 for tour support and US$300,000 for promotion/marketing.

Some critics cite that the IFPI report should have included trend data comparing investment over time. Mullings retorted that the report achieved its stated objectives. "The report addresses very clearly and comprehensively what it sets out to report on, and that is, what is generally involved in discovering, developing and promoting an artist's career. It was not meant to be a tool for comparison across time but a report on what it generally takes to break an artist into mainstream," he said. "Those facts about developing an artists career, remains true, even if the report is speaking largely from the perspective of international labels. There may be different scale and cultural variations in how we approach developing an artist's career but ultimately it comes back to investment of time, money and knowledge and skills, all of which an artist may be unable to bring together successfully on his own, hence the need for support from a traditional label or indirect support from production houses as is the case in Jamaica."

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COMMENTS (4)

3/19/2010

I would agree that it sounds great but i still think much more could be done to make our productions more attractive to the international market. Too many of our local artist are not doing the best they can because of other reasons apart from financing - fix that and then we can talk business.

Lloyd Stanbury
3/19/2010

The title and sub-title of this article is very misleading. The body of the article shows absolutely no connection between current levels of investment by international record labels and Jamaican/Reggae artists. None of the artists mentioned in the article currently have any deals with major international labels that spend the average US$1 million on development. The only current Jamaican artist that could even be close to a US$1 million development budget is Sean Paul, and he was not mentioned.
We really have to exercise much more care in how and what we report. From what I know of Evon Mullings, I doubt very much that he is making a case that currently there is an upsurge in investment in artist development by international lables on local artists, or by local producers on local talent. This could never be so when today we only have a couple of local artists signed to major international deals, as against several as was the case 10 years ago.
I think Evon needs to clarify his position for the benefit of readers like myself.
One Love

dillon hines
3/19/2010

IF we were still producing real music and exposing real talents music could have dig jamaica out of the mess it finds itself in but we chose to push rubish and use computer to create so call artist that fade within a short time span and thier music is really not lasting and have mostly negative impact on society

Paul Lewis
3/19/2010

What world is this guy living in ?. The garbage that we are producing now has run its course. The novelty of the so called " music " has diminished since most people are begining to understand the meaning of the lyrics. There is a price to pay for greater exposure. Talent must now be the key.

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Investing in the music