Quote:
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.
The article goes on to claim that major labels spent $4.6 billion on A&R (that is, looking for and developing new acts), which is equal to 27% of their budget. That’s a bigger percentage than what the pharmacology industry spends on R&D.
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http://www.hypebot.com/hypebot/2014/...label-act.html
This is why a lot of labels don't like to provide their acts major promo.