Christine Coleman

Music Industry Communications

Market Analysis
9/13/16
Market Analysis for A&R
In the music industry, the recording industry is made up of record labels responsible for
producing, promoting, marketing and distributing recorded music as well as finding artists and
songs that are marketable. The A&R (Artist and Repertoire) sector of the recording industry is
the bridge between emerging artists and record labels. A&R reps are responsible for finding new
talent, overseeing the recording process, and assisting with marketing and promotion. By
working with a label, A&R reps are able to provide new artists with new resources they have
never had before in order to expand their market.
It is seen as one of the more glamorous branches of record labels due how closely those in A&R
work with artists. They are the ones who sign artists to record labels and help them develop their
sound and image in order to become commercially successful.
- According to IFPI, it is estimated that record labels annually invest $4.3 billion
worldwide in A&R combined with marketing ($500,000-2,000,000 per artist) 27% of
industry revenues.
- The major labels combined have around 7,500 artists on their rosters - New talent is the
lifeblood of the industry and one fifth of those artists was signed in the previous 12
months. - IFPI
Record labels are changing the role of an A&R rep in order to help artists who already have a
following stand out among every other artist who is trying to record, market, and promote
themselves.
Geographic Area
Thanks to the Internet and social media, a person no longer has to leave their house so they can
discover new music. However, in order to work with major or independent record labels and
establish a career in the A&R field, one must live in an area where record labels are prominent.
One city in particular that is filled with labels is New York City.
-According to Billboard, music industry jobs in NYC make 147% of the countries average
salary.
-In the New York metropolitan area, those who work in the industry make an hourly mean wage
of $49.92 and annual mean wage of $103,830 (as of May 2015)- data taken from Bureau of
Labor Statistics

The Big 3 Major labels, Universal Music Group, Warner Music Group, and Sony Music
Entertainment, along with their subsidiaries have offices in New York. New York City is also
home to hundreds of independent labels of various different genres, including alternative. Some
of the more prominent independent alternative labels in New York City are Matador Records,
Glassnote Records, and Mom and Pop Records.
In New York City, aspiring artists can be found anywhere from the subway, small clubs, iconic
venues, and DIY venues where local and unknown artists can put on their own shows with other
artists. An advantage for someone who is involved in A&R because everyday there is an
opportunity to discover new music without having to travel a far distance. Another advantage of
being an A&R rep for a record label in New York City is that you provide new artists with the
opportunity to come to a major city in the music industry and and provide them with the best
resources a record label has to offer so they can expand their audience.
Demographics
New York City has a population of 8,550,405 (all 5 boroughs included). The population of
peoples ages 15-29 is 1,908,608 (the target audience for alternative music are people between the
ages of 16 and 25). The median household income is $52,737 and 35% of the population of
people 25 and older, posses a Bachelors degree or higher. The city is predominantly Caucasian,
taking up 44% of the population, but there are also high populations of African Americans,
Hispanics, and Asians. Also 37.1% of the population are from a foreign country. All information
was provided by the U.S. Census.
If alternative music from a record label is going to be marketable in New York City, it has to be
able to appeal to wide variety of people, along with its initial target audience.
Ethnographics
The diversity of New York City has provided it with a cultural energy and creativity, making it a
center for new artistic movements including the development of new popular music. Unknown
artists flock to New York City because it is a major center for the music industry. From the
Harlem Renaissance to the emergence of Hip-Hop in the Bronx, NYC has been a place where
new genres are started. In general, the city is always filled with music whether it be on
Broadway, a performance from the Philharmonic, or musicians performing in the subway. It is
also one of the largest tourist destinations in the world, where people come to experience the arts
whether it be music, visual arts, theater, film, or dance and visit famous venues and museums,
such as Lincoln Center, Radio City Music Hall, and the Metropolitan Museum of Art.
A&R Trends in the Music Industry
There has been an ongoing debate in the music industry on whether or not A&R is still relevant
since artists have begun to use the Internet and social media as a means of marketing and
promotion without the need for a record label, as well as the development of technology that
allows artists to create professional quality recordings without having to pay for studio time.
However, this hasnt led to a decline in the A&R sector of the music industry, but rather a drastic

change. Also the majority of artists still aspire to be signed to a major or independent label,
according to the IFPI.
Instead of going to clubs and venues on a nightly basis in order to find unknown artists before
consumers discover them, it is the job of A&R reps to help established artists get to the next
level through the resources a record label can provide, especially financial resources.
- Major label A&R now focuses on finding artists that already have substantial fan bases.
They dont become involved until the later stages of artist development and use their
established market in order to sign artists they know will sell to their current consumers.
- Indie label A&R focuses on artist development. They work on helping artists with
songwriting and selecting songs for an album/single, so they can find the right sound.
- Since A&R reps are looking for artists who have been able to market themselves without
the help of a label, they use social media sites, like Twitter and Facebook, and YouTube
as a resource to discover new artists.
The future role of A&R will be to act as a multiple service provider, and only invest and market
established artists who are looking to expand their reach even further.
Competition
A&R rep is one of the most sought after jobs in the music industry due to its exciting lifestyle
that includes working closely with artists, going to shows constantly, working in the studio, and
networking with producers. This means there is going to be a lot of competition. Candidates for a
job in A&R will have a bachelors degree, but it doesnt necessarily have to be a Music Industry
Degree. Many record labels will hire people with Communications, Business, and Marketing
degrees. In order to stand out among those who are qualified simply based on their degree, a
candidate for a job in A&R should be creating their own networks of artists by being active in
their local music scene. For example, being a part of the college radio station is a great way to
discover artists you may not have heard of and immerse yourself into a local scene.
Even though they may not realize it sometimes, A&R reps are constantly competing with each
other. When an artist has momentum it is more than likely that there are multiple labels
interested in them especially in the major market. It is important for one to act quickly in order to
gain the artists attention, otherwise another label will approach them. In New York City, this will
be especially difficult since there are hundreds of labels all looking for the same thing.
Conclusion
Based on the information provided above, one has a good chance at becoming involved in the
A&R sector of the recording industry. A&R reps are the gatekeepers to the music industry for
aspiring artists and are responsible for signing new artists and helping them develop through
promotion and marketing, as well as by being involved in the recording process. It is thought to

be one of the more exciting parts of the industry because of how closely A&R reps are involved
with artists.
A&R reps use the Internet and social media as a main method for discovering new artists, but in
order to work for a major label, one should move to an area like New York City, where major
labels are prominent. The population of New York City is very diverse and if an artist wants to
be marketable in NYC they have to be able to appeal to a vast population. Culturally, it is a
center for the arts, especially music. Live performances are constantly occurring in different
venues and it is a hub for the creation of new genres.
While some believe the era of A&R is ending, it actually is just changing. A&R now focuses on
artist who have already established themselves through an internet presence and have already
built up a market and bringing them to the next level. It is becoming a multi-service provider that
will only invest in artists that have created their own momentum. The competition in A&R is
intense because chances are if one rep is interested in a certain artist, other reps are also likely to
be interested in the same artist. It may not happen intentionally, but A&R reps are constantly
competing.
The role of an A&R rep is being altered by the development of new technology that allows
artists to create professional quality recording and by social media providing unsigned artists
with the means to market and promote themselves to large audiences. It is still a necessary part
of the recording industry because getting signed helps an artist stand out among all the others
who are also promoting and marketing themselves on the internet, by giving them the means to
expand their audience even more and establish their sound and image. Overall, even though the
focus of an A&R rep has changed, they are still a vital to the development of emerging artists.

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