Internationalization of Artists

Internationalization of Artists

Both on an individual and corporate level networks and relationships are of priceless value. Nimble Agency has conducted research on the effect of relationships with large-scale enterprise on internationalization in the past. Today, we’ll shine a light on the relationship between artists and large-scale labels.


Relationships can become bridges to foreign markets, by providing firms with the opportunity and motivation to internationalize. In an interview with IFPI Frank Briegman of Universal Music stated that ‘not all artists sign to labels are developing acts; some have established their careers but want to work with a label on specific targets.’ The use of a national network position, built during a last commercial relationship, and consolidated by trust, learning, and knowledge, would be a useful resource to increase the speed of the internationalization process.

Large-scaled labels support artists in a variety of ways, including advancing, recording, video production, marketing, promotion and tour support. The primary input, however, remains to be the investor in an artists’ career. In 2013 alone, $4.3 billion was invested in the development of new artists, making of for 27% of all record companies’ yearly revenues. Although the virtuous cycle of investment shows how record companies earn back on their invested money, only 10-20% of the projects invested in turns out to be profitable. (IFPI, 2014)

An LE with operations in a far or distant market provides opportunities and insights about markets features and transfers knowledge that allows a smooth market entry for different artists. Following IFPI (2014) this remains the main reason that seven out of ten unsigned artists want a recording deal. On top of that labels can provide financially backup artists. With the average investment in a new talent counting up to $500,000 – $2,000,000 in 2013 (IFPU), these services still are a necessity.

With 7,500 artists signed to the major labels’ roster alone and A&R managers always searching for new talent, signing a deal is closer than you may think. Nimble Agency has been involved in the internationalization process of several artists and entertainment corporations, including a high potential deal with Warner Chappell. Through using their experience and network, Nimble Agency will enhance your internationalization process by choosing the right large scaled partners as well as guiding the partnering process and outcomes. Liked this article? Read more on 5 pillar philosophy for artists.

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