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# The Cost Of Breaking A Major Label Act
- URL: https://www.hypebot.com/the-cost-of-breaking-a-major-label-act/
- Published: 2014-12-11T13:00:00.000Z
- Updated: 2014-12-11T13:00:00.000Z
- Description: By Bobby Owsinski on Music 3.0 Blog The latest IFPI (International Federation of the Phonograph Industry - boy, is that name outdated) recently came out with a report about the state of the music industry. Continue reading [https://www.hypebot.com/hypebot/2014/12/the-cost-of-breaking-a-major-label-a
- Author: Guest Author
- Tags: DIY Advice & Tips, Indie Music, Major Labels, Music Marketing, 5 Seconds of Summer, 50 Cent, International Federation of the Phonographic Industry, iTunes, music industry, record label, Spotify, Twitter, YouTube, #wp, #wp-post, #Import 2026-01-21 10:38

[![IFPI logo](http://hypebot.typepad.com/.a/6a00d83451b36c69e201b7c71ccdf4970b-150wi "IFPI logo")](http://hypebot.typepad.com/.a/6a00d83451b36c69e201b7c71ccdf4970b-popup?ref=hypebot.com)

By **Bobby Owsinski** on [Music 3.0 Blog](http://music3point0.blogspot.com/2014/12/the-cost-of-breaking-major-label-act.html?ref=hypebot.com)

The latest **[IFPI](http://ifpi.org/?ref=hypebot.com)** (**International Federation of the Phonograph Industry** \- boy, is that name outdated) recently came out with a report about the state of the [music industry](http://en.wikipedia.org/wiki/Music%5Findustry?ref=hypebot.com) and a few of the elements that were analyzed included how much the major labels spent on developing new acts.

**Here are some interesting figures.**

- The cost of breaking an act is between $500k and $1 million.
- The typical advance averages between $50k and $350k
- Typical album recording costs are between $150k and $500k.
- The typical video production goes from between $50k to $300k.
- Tour support is between $50k and $150k.
- Typical marketing and promotional costs are between $200k to $700k.

[![Money_bags](http://a0.typepad.com/6a016766638dee970b01b8d0a68db8970c-150wi "Money_bags")](http://a0.typepad.com/6a016766638dee970b01b8d0a68db8970c-popup?ref=hypebot.com)

Major labels spent $4.6 billion dollars this year on A&R and marketing their acts, and 27% of the major label's revenue went to A&R. According to the IFPI, this is greater than what the computer, pharmacology and biology industries spend on R&D.

Finally, there are **7,500 artists** signed to major labels around the world. **One in 5** is a new signing.

Most artists today really like the DIY aspect of building their career, but there's nothing like the monetary clout of a large label.

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