Study finds indie labels return 77 percent of profits to artists

Tom Rander

— 1 min read
Study finds indie labels return 77 percent of profits to artists

Industry BriefPublished: 2025-12-02   By: Michael Lawson

A new ORCA report says independent labels channel most of their profits back to artists. The analysis of nine labels, including XL Recordings and Ninja Tune, outlines major 2023 investments and outcomes.

Key details

  • ORCA reviewed financial data from nine indie labels, including XL Recordings, Ninja Tune and Domino
  • In 2023, labels invested $134 million across 569 artists, averaging over $235,000 per act
  • Funds typically covered recording, touring and promotional costs
  • Each $1 invested generated $0.77 in profit, with 77% of that profit paid to artists
  • The 131-page report underscores the independent sector’s long-term artist development
  • Findings come amid a crowded streaming landscape with 200+ million tracks competing for attention

What the study shows

The Organisation for Record Culture & Arts (ORCA) analyzed the finances of nine independent labels and concluded that artists receive the majority of profits. The study highlights a model centered on long-term artist development.

By the numbers

Across 2023, these labels collectively put $134 million into 569 artists, averaging more than $235,000 per act. ORCA reports that each dollar invested yielded $0.77 in profit, and 77 percent of that profit was ultimately paid to artists. These funds commonly covered recording, touring and promotion.

Why it matters now

With more than 200 million tracks jostling for visibility on streaming platforms, ORCA argues that indie labels provide the expertise, resources and sustained support artists need to break through. Executive director Patrick Clifton said the findings underline the sector’s tangible cultural and economic value.

The bigger picture

The 131-page report positions independent labels as incubators for talent and innovation, calling their role foundational to a more sustainable and inclusive global music industry.

Source

Original report

Read more