• Global think tank and advocacy group, the Organization for Recorded Culture and Arts (ORCA), has released a first-of-its-kind report analysing the economic investments and social impact of nine leading independent record labels.
• Analysis shows these labels invested $134 million in artists in 2023, with an average of $236,197 supporting each artist
• For every $1 invested, $1.77 in revenue was generated, with 77% of that profit ($0.59) paid out to artists
• Artists supported by these labels saw an average 44% increase in Spotify followers between 2023 and 2025, showing the benefit of long-term investment
• Almost a third (31.5%) of all executive and senior management roles are held by women,  more than 15 percentage points higher than the industry average

In a first-of-its-kind report, global think tank and advocacy group, ORCA, reveals how independent labels generate tangible value and income for artists through long-term partnerships and investment.

Commissioned by ORCA and written by the Center For Music Ecosystems, the report analyses financial data from nine leading independent labels. It shows that in 2023, these labels invested $134 million that supported 569 artists across different genres and geographies, generating a combined revenue of $239 million. 

A third (33.5%) of that revenue was paid out directly to artists, with each artist on average benefiting from $236,197 in investment, covering everything from production and touring to marketing and career development.

For every dollar invested, independents generated $0.77 in profit, and 77% of that profit ($0.59) went directly back to artists, reinforcing the benefits of the independent label model built on long-term partnership to develop careers and deliver shared success.

This investment has also translated into measurable growth in artist audiences. Artists supported by participating labels saw an average 44% increase in Spotify followers between 2023 and 2025, in an environment where gaining cut-through has become hugely challenging. More than 202 million tracks were available on audio streaming services at the end of 2024, and an average of 99,000 new tracks uploaded to these platforms daily. Combined with AI fraud, this illustrates the increased competition for visibility, listenership, and engagement faced by artists.

“For the first time, we have real numbers that show the economic power of independent labels and the benefits this model delivers for artists. Independent labels have always championed a long-term mindset, developing an artist over time, taking creative risks and nurturing new sounds that shape the music industry. This report shows how this approach provides tangible and meaningful returns for artists, while sustaining a business model that benefits culture, the economy and society more broadly,” said Patrick Clifton, Executive Director, ORCA

Diverse income streams helping to support artist development
According to ORCA’s report, label revenue is sourced from a diverse mix of income streams, with independent labels using different strengths and opportunities to deliver value for their artists.

Streaming accounts for the largest share in revenue at 59.5%. This is followed by physical sales at 25.9%, which is substantially higher than the global average of 16.4% across the recorded music sector, driven by highly engaged fanbases investing in vinyl and collector-oriented releases, particularly among more niche genres.

Meanwhile sync also stands out as a significant revenue contributor (7.4%), over three times  the global average (2.2%). This figure underscores sync’s growing role as both a revenue source and promotional platform, with labels increasingly using placements across film, TV, advertising, and gaming to expand reach and strengthen artist campaigns.

“Over the past two-plus decades, I have seen the recorded music business shift from CDs, to downloads, to streaming. And now it’s streaming, vinyl, CD, cassette, and novel format du jour – all at the same time. Through it all, the constant has been independent record labels doing the heavy lifting, not only to keep up with these changes and to get important musical recordings to market, but to invest money, time, and energy to develop artists - in the truest sense of that word. 

“This report shows that, while new models for distribution and marketing are constantly emerging, the independent record label model continues to provide the expertise, resources, and support musicians need to reach ever-bigger audiences and develop sustainable careers,” said Anna Bond, Director of Planning and Initiatives, Secretly Distribution

Independent labels above industry average for women in leadership
Across the wider music industry, women hold just 13.2% of executive and senior management roles, according to the USC Annenberg Inclusion Initiative. Among the participating independent labels, that figure rises to 31.5% - more than 15 percentage points higher than the industry average - with women also making up 46.6% of total staff.

Female presence on the artist side follows a similar trend. In 2023, 23.1% of active artists at the participating labels were women, and a further 18.7% of projects involved mixed-gender collaboration, meaning women were represented in 41.8% of all artist projects. In comparison, the Counting the Music Industry study, which looked at gender representation across more than 200 UK labels, found that just 26.23% of signed solo artists were female and only 14.9% of musicians in groups were female. While further progress can still be made, this highlights a notably higher level of gender equity among the participating labels across both leadership and creative talent.