Shad
Front matter:
Introduction
Purpose of the Study
ORCA’s first publication, Resetting the Table: How Music Works, introduced how independent record labels contribute to the economic, cultural, and social value of the music ecosystem through artist development and infrastructure support. This report builds on the foundational analysis it presented with new primary data on how independent labels invest in artists, teams, and infrastructure and the results those investments generate.
Drawing on both quantitative and qualitative data from nine ORCA members, the study provides a data based understanding of the economic and social contributions of these independent labels as well as the broader impacts achieved through this work. This report is not intended to elevate these investments over others in the music industry, but to deconstruct and clearly explain what they are and how they work. This is a snapshot of nine independent record labels. It is not prescriptive of the broader independent record label ecosystem.
This report addresses three central areas:
Investment Value
What is the scale and nature of the investments, financial and otherwise, that independent record labels make in their artists, teams, and infrastructure?
Investment Impact
What are the outcomes of those investments, both for the labels themselves and their artists?
Social Commitments
How do independent record labels structure their organizations and practices to support equity, wellbeing, and inclusion?
Thundercat
This analysis is based on a sample of nine independent labels. While independent record labels vary widely in size, focus, and structure, the combined results from this small cohort represent ~$134m in investment and ~$239m in revenue in 2023 alone.
This underscores the substantial contributions of the sector. If these numbers represent just nine labels, it follows that the global independent label sector, composed of thousands of businesses, contributes many times more in overall investment and economic impact.
Mdou Moctar
This research comes at a time when the music industry is rapidly changing, shaped by several key challenges, as evidenced in European trade body Impala’s recent report on the concept of a two‑tiered streaming environment:
Democratization of Music Creation
Lower barriers to entry to making music, driven by a decrease in technology costs and the rise of AI have increased the volume of music being created and released.
Oversaturation
With more than 202 million tracks available on audio streaming services at the end of 2024, and an average of 99,000 new tracks uploaded to DSPs daily, artists face increased competition for visibility, listenership, and engagement.[2]
Catalog Dominance
Emerging talent competes not only with other new releases, but also with an ever-growing catalog of music.
Economic Complexity
The decentralized nature of the modern commercial music industry is challenging to navigate for those who lack experience, or resources.
Platform Dynamics
Changes in listening behavior and algorithmic recommendation systems make it increasingly cumbersome for artists to navigate digital platforms.
By providing both numbers and narratives, the report offers not only new data but also a clearer picture of how the independent sector operates. Our aim is to demystify the role of independent labels and show why their artist‑first, long‑term approach matters for music.
Bicep
Audience
This report is intended both for those within the music industry and those outside it. For industry professionals, it offers insight into the economics and operations of independent record labels, grounded in new financial data on revenues and investments.
For those less familiar with the sector, including policymakers, economic development officials, cultural agencies, and multilateral institutions, the report aims to illustrate how independent labels function, highlighting both the investments they make and the economic and cultural value they generate. Ultimately, the report is addressed to anyone who wishes to understand how music is made, supported, and sustained, and why that matters for broader creative and economic ecosystems.
BCNR
Methodology
PJ Harvey
This report uses primary quantitative and qualitative data to demonstrate and analyze the economic investments and social characteristics of nine independent record labels. The findings are based on a survey that detailed revenues, costs and other select characteristics of participating labels for the year 2023, along with interviews conducted with staff from each label.
Survey Data
The quantitative analysis is built on survey responses from nine ORCA member labels:
Alligator Records
Founded: 1971
Location: Chicago (US)
Affiliation: Part of the Exceleration Music family
Domino Recording Company
Founded: 1992
Location: London (UK)
Hopeless Records
Founded: 1993
Location: Los Angeles (US)
Ninja Tune
Founded: 1990
Location: London (UK)
Partisan Records
Founded: 2007
Locations: Brooklyn (US), London (UK) and Berlin (Germany)
Playground Music
Founded: 1999
Locations: Sweden, Norway, Denmark, Finland, and Estonia
Secret City Records
Founded: 2006
Location: Montreal (Canada)
Secretly Group
Founded: 1996
Locations: Bloomington (US) and New York (US)
Cantes Malditos
The survey captured a representative picture of the structure, operations, and financial impact of a typical independent record label. It was focused on two main areas:
Value Chain Indicators
A set of monetary and non‑monetary metrics to assess how labels invest in, develop, and support artists and releases across the recorded music value chain. This includes information on revenues, return on investment (ROI), and investment across the recorded music value chain, including artist relations and strategic support, artist creative development and production, artist marketing and distribution, live performance and touring, and organizational infrastructure and capacity.[3]
Workforce and Inclusion Indicators
Information on workforce composition, employee benefits, and inclusion practices at the participating labels, which underpins the report’s analysis of working conditions and gender diversity.
Together, these data points provide the analysis presented here of participating labels’ contributions to the music ecosystem.[4][5]
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The financial figures in this study are reported on a cash basis, capturing only transactions completed within the 2023 calendar year by participating labels. This excludes accounts receivable (e.g. royalties earned but not yet received) and accounts payable (e.g. royalties owed but not yet disbursed). As a result, the data reflects actual cash movement rather than accrual‑based accounting. The labels studied operate on long‑term investment cycles. Revenues received in 2023 are the product of investments made in previous years, while investments made in 2023 will generate returns over time. A single year of financial data therefore represents a snapshot rather than a full accounting of investment outcomes.
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Unless otherwise specified, all financial figures presented in this report are denominated in United States Dollars (USD).
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To make the text readable and avoid repetition, the analysis provided in this report is written to reflect the understanding that the quantitative results presented are based on the survey responses from the nine participating labels named above, unless otherwise noted.
Waikiflow
Qualitative Interviews and Case Studies
We interviewed 14 staff members across the nine participating labels, plus one external manager. Interviewees work in a wide range of roles, including A&R, label management, marketing, sync, merchandising, business development, and technology and data analysis (see Appendix for a full list).
The interviews were designed to add contextual depth to the quantitative dataset, offering insights into strategic decision‑making, label culture, and artist development practices. Illustrative examples drawn from these interviews are woven throughout the report to highlight key themes and demonstrate how they manifest in label and artist experiences.
Report Structure
Durand Jones & The Indications
This report is structured to progress from the investments independent labels make in artists, infrastructure, and organizational capacity, toward the impacts investments catalyze, for both the labels themselves and the artists they support.
Part I: Investments Across the Recorded Music Value Chain outlines the scale and nature of investments made by participating independent labels across five key areas: artist relations and strategic support, creative development and production, marketing and distribution, live performance and touring support, and organizational infrastructure. This section demonstrates the breadth and depth of label activity that underpins artist development.
Part II: Revenues, ROI, and Artist Impact shifts focus to the results of label investments. It presents data on label revenues, return on investment, the distribution of earnings to artists, and the measurable outcomes of label support, including audience growth.
Together, Part I and II illustrate the full lifecycle of label-driven value creation in the independent sector.
Part III: Workforce and Inclusion turns inward to examine how independent labels are structured and support their teams. It explores working conditions, training and wellbeing practices, and the state of gender diversity among both label staff and artists. This section underscores the ethical and operational commitments that shape how labels function as workplaces, as well as cultural intermediaries.
Aoife