Photo Credit: Gabriel Gurrola
Independent music labels return a third of revenue to artists, according to a new report from global advocacy group ORCA.
Global think tank and advocacy group ORCA (Organization for Recorded Culture and Arts) has released a first-of-its-kind report revealing 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 benefitting 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.”
That 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 notoriously challenging.
Over 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 that artists face.
“For the first time, we have real numbers that show the economic power of independent labels and the benefits this model delivers for artists,” said Patrick Clifton, Executive Director, ORCA. “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.”
According to ORCA’s report, label revenue is sourced from a diverse mix of income streams, with independent labels utilizing their various strengths and opportunities to deliver value for their artists.
Streaming accounts for the largest share in revenue at 59.5%, followed by physical sales at 25.9%, which is substantially higher than the global average of 16.4% across the recorded music sector. That’s driven by highly engaged fanbases investing in vinyl and collector-oriented releases, especially among niche genres.
Sync also stands out as a significant revenue contributor at 7.4%, over three times the global average of 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.
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% higher than the industry average, with women also making up to 46.6% of total staff.
Meanwhile, on the artist side, female presence 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. ORCA’s report highlights a notably higher level of gender equity in leadership among the participating labels, while acknowledging that further progress can still be made.
