But just how much investment is happening today?  The IFPI just released a report pegging current label investment at $5 billion annually, worldwide.  That is roughly 30 percent of broader revenues, a serious reinvestment on early-stage artist development and marketing.  On top of that, the IFPI estimates that labels commit more than $1 million to break artists into newer markets.  Money for advances, recordings, marketing and promotional activities are the largest expenses, often tipping hundreds-of-thousands of dollars, according to the group.

The findings are part of the just-published Investing in Music report.  The broader agenda is to promote anti-piracy measures, reaffirm the importance of labels to artists, and convince lawmakers that labels play an important role in the economy and culture.  “No other party comes close to the levels of investment committed by record companies to developing, nurturing and promoting talent,” said IFPI chief John Kennedy. 

But other parties are also starting to fill that role.  As the hype surrounding ‘DIY’ dies down, artists are realizing that teams and financial support are important for growth, though the partner itself can vary. Indeed, labels are not the only ones capable of bankrolling talent, and artists have more sidekick options than ever before.

For its investment, Power Amp gets 50% of gross revenue from Church’s recordings, publishing, merchandise and touring for an undisclosed period.

“[The deal] provides me with a financial commitment equivalent to that of a major record company but with a much greater degree of control and ownership over my career,” Church told FT.com.

Church parted ways with her former label Sony Music in 2006, after selling 10.5 million albums worldwide.

Authored by Mark Hefflinger on March 10, 2010 – 8:16am.

Amazon debuted its Daily Deal feature in June 2008, and has more recently been asking labels for a one-day exclusive on sales before an album’s official release date, as well as label marketing support for the Daily Deal on an artist’s website and social media pages, the head of sales at a major label told Billboard.

“When that happened, iTunes said, ‘Enough of that shit,’” the executive said.

Due to Apple’s pressure, sources told Billboard that label executives had decided not to promote recent releases from Lady Antebellum and Ke$ha as Amazon Daily Deals.

Authored by Mark Hefflinger

The musicFirst Coalition – whose membership includes the RIAA, A2IM, and the American Federation of Musicians – held a morning press conference on Capitol Hill to reinvigorate its performance-focused campaign.  The push is coming from an expanded coalition that now includes the NAACP.  “Being paid fairly for your labor is one of the most basic civil rights,” said Hilary Shelton, director of the NAACP Washington Bureau and senior vice president for Advocacy and Policy.

Of course, the NAB was also blowing its own special-interest horn.  The group is currently corralling local station owners on the Hill to protest what it terms a ‘tax,’ and pushing hot-button topics like foreign ownership (a reference to EMI, UMG, and Sony Music), jobs, struggling artists, and taxes.  “The unfortunate truth is that this legislation benefits foreign-owned record labels to the detriment of ‘struggling artists’,” NAB executive vice president Dennis Wharton said.  “This is a job-killing bill that threatens a musician’s number one promotional vehicle while transferring hundreds of millions of dollars into the coffers of companies based in Tokyo, Paris and London.”

Report by Alexandra Osorio.