Study Touts Record Industry's Role In Musicians' Careers

The recording industry is the principal investor in musicians' careers, according to a study released Tuesday by IFPI, an international recording industry group, and WIN, a network of independent record labels.

The global study found that about 30 percent of record companies' sales revenue is spent on supporting musical talent, amounting to $5 billion dollars spent on artists' careers every year. The study drew on data from IFPI's member record companies and other case studies.

The findings appear to attempt to refute a public relations challenge that has pestered the recording industry: the notion that labels bankrupt their talent, an allegation AM and FM broadcasters readily assert in their ongoing feud over whether radio stations must begin paying royalties to musicians. Legislation cleared by both Judiciary Committees would require AM and FM radio stations to pay a fee to performers for playing their music on the air. Broadcasters argue the bill would benefit corporate record labels, many of which are foreign owned, more than musicians.