Artists signed to indie labels also saw an average growth of 44 per cent in Spotify followers over the past two years
By Liberty Dunworth 3rd December 2025
Lambrini Girls live at Glastonbury 2024. Credit: Andy Ford for NME
A new study has found that Independent record labels pay nearly 80 per cent of all profits to artists.
- READ MORE: UK falling far behind in battle for venues and artists: “Music becomes a middle and upper class sport”
The figures were revealed by the Organisation for Record Culture & Arts (ORCA), after a new report analysed data from nine imprints. This was done to get an insight into how indie record labels generate income for artists, and those observed included Ninja Tune, Partisan, XL Recordings and more.
AdvertisementIn the findings, reported by Mixmag, ORCA discovered that in 2023 alone those labels collectively invested £102million into 569 artists. Of that amount, there was a revenue of roughly £108million, and each artist received an average of £170,000 in investment.
That money went towards touring costs, marketing strategies, production and more.
The study from ORCA also shared that for every £1 invested, indie record labels get around 0.74p in profit, and give 77 per cent of that amount (0.59p) back to the artists.
Not only did the artists signed to independent labels benefit financially between the period of 2023 and 2025, but this time frame also saw them receive an average growth of 44 per cent when it came to followers on Spotify.
Speaking about the findings, ORCA’s Executive Director Patrick Clifton shared: “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.
Recommended📢Today, ORCA released a new report on 9 leading #independent record labels, showing how money is invested, returned, and what it means for artists 🎤, audiences & the industry.
📄Read the report: https://t.co/asWD2sJsLJ
🌐Executive summary in🇬🇧🇫🇷🇪🇸🇵🇹: https://t.co/SEQQazYXcg pic.twitter.com/jyozuAsq5x
— IMPALA (@IMPALAMusic) December 2, 2025
“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.”
Check out the full findings from ORCA here.
The report comes after the UK government announced earlier this summer that they were ironing out the details of “the best deal in the world” to help boost songwriter’s earnings.
AdvertisementTheir plan was backed by UK arms of major labels Universal Music Group, Sony Music Entertainment and Warner Music Group, and suggested a new framework for the renegotiation of contracts by artists who signed record deals before streaming became commonplace. On top of that, the British Phonographic Industry (BPI) and Musicians’ Union also agreed to increase session musician fees to ensure they are more fairly paid for their work.
Back in 2022, it was confirmed that there were active changes being made to help support emerging talent, with investment into artists by UK record labels doubling between the period of 2016 and 2021.
Despite some progress, artists have called out the tough conditions still faced to make ends meet in recent years, and urged for there be more done to help musicians get adequate pay for the amount of work they do.
Last year, James Blake said major labels “should be required to provide a therapist to their artists”, particularly as they face numerous financial difficulties in a lot of cases, and often use their struggles as inspiration for material.
Kate Nash takes the ‘Butts For Tour Buses’ campaign to the streets of London. Credit: Emily Marcovecchio
At the end of 2024, Kate Nash also drew attention to the financial struggles faced by both new and established artists by launching her ‘Butts for Tour Buses’ campaign.
Speaking to NME at the end of that year, she explained why he was trying to raise more awareness. “A lot of work has been done over the last five years by people in government […] they’ve been working on this with proper activism at a political level. The reason it’s tipping over is because we’re almost at collapse. It can only go on to be something we all complain about behind the scenes for so long until you start to see it crumble.”
She continued: “The reality is that touring is making losses, not profit. The grassroots is in absolute crisis. Venues are closing, festivals are being cancelled. People are thinking, ‘What’s the point in starting a band?’ and ‘How can I as an artist carry on?’
Last month, it was reported that major labels Sony Music Entertainment, Warner Music Group and Universal Music Group had all signed licensing deals with AI music technology startup Klay.
According to Music Business Worldwide, the agreements aim to “help further evolve music experiences for fans, leverage the potential of AI, while fully respecting the rights of artists, songwriters, and rightsholders”.
Carlette Higginson, EVP and Chief Digital Officer at Warner Music Group said of the move: “Our goal is always to support and elevate the creativity of our artists and songwriters, while fiercely protecting their rights and works. From day one, Klay has taken the right approach to the rapidly-evolving AI universe by creating a holistic platform that both expands artistic possibilities and preserves the value of music.
“We appreciate the Klay team’s work in advancing this technology and guiding these important agreements.”
