Independent labels pay 77% of all profit to artists, new study finds

Independent record labels pay more than two thirds of all profits to artists, according to a new study from ORCA (Organisation for Record Culture & Arts).

The “first-of-its-kind” report analysed data from nine imprints including XL Recordings, Ninja Tune, Secretly Group, Partisan, and more to assess how indie labels generate income for artists.

It found that, in 2023, those labels invested £102 million ($134 million) into 569 artists, generating around £108 million ($239 million) of revenue. Every artist received an average of over £170,000 ($235,000) in investment, which went toward production, touring, marketing, and more.

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ORCA’s data also revealed that for every pound invested, indie labels generate £0.74p in profit, with 77% of those profits (around £0.59p) going directly back to 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,” says Patrick Clifton, Executive Director at ORCA.

“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.”

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According to the report, musicians who are supported by independent labels also saw an average of 44% growth in Spotify followers between 2023 and 2025.

Though the study notes that streaming accounts for the largest share in revenue for artists at almost 60%, a 2021 report found that just 0.4% of musicians could potentially make a living from streaming.

In 2022, Spotify’s annual transparency report revealed that only 52,600 artists generated more than $10,000 on the streaming platform the year prior. A more recent report found that 84% of UK independent artists can’t afford to tour in 2025.

Read ORCA’s report here.

Gemma Ross is Mixmag’s Associate Digital Editor, follow her on Twitter