The Benefits of Investing in Talent: How It Impacts the Music Industry and Beyond The music industry's growth and success rely on supporting emerging artists, promoting diversity and fueling economic growth. Attending live shows, streaming songs and purchasing music are effective ways to support up-and-coming talent, fostering a vibrant and diverse musical landscape for the future.
By Eric Dalius Edited by Micah Zimmerman
Opinions expressed by Entrepreneur contributors are their own.
The music industry has been through a lot lately. From the pandemic to the emergence of streaming, there have been significant developments owing to which the industry is constantly evolving.
But there's one thing that remains the same — the need to support emerging music artists.
Supporting emerging music artists is essential for the long-term growth and success of the music industry. Investing in new talent, labels, promoters and other related industry personnel can keep the music industry alive and thriving.
And that's not it.
Supporting emerging music artists is an excellent way to generate social, cultural and economic benefits. Let's discuss this in detail with three ways investing in music talent benefits the music industry.
Related: Rise Above The Noise: 5 Tips to Stand Out as an Independent Artist
1. It promotes diversity
When multiple people and entities invest in emerging musicians that appeal to their unique tastes and preferences, they promote diversity in the music industry.
As we all know, the music industry is a vast, complicated and often exclusionary world. It can be difficult for artists of all backgrounds to gain a foothold in the industry, no matter how talented they may be. That's why, when you invest in music talent from a wide variety of backgrounds, you contribute to creating a more inclusive culture that encourages all kinds of artists to thrive.
By hiring and promoting artists with different experiences and talents, the industry can benefit from the unique perspectives and new ideas that come with a diverse team. This, in turn, will create an environment where all artists feel welcome and enjoy new pathways for exploration.
As such, we can look forward to a more equitable industry where music talent from marginalized and underrepresented communities is appreciated and supported as much as other groups. It will be a better representative of the world we live in.
Besides, no one knows where the next superstar could come from, right?
2. It supports artists who are strapped for cash
A few years ago, music artists that wanted to make it big in the industry would have to sign up with reputable record labels — which typically take a big slice of a successful artist's earnings.
In a world where these record labels make more money from successful musicians than the artists make themselves, investing in music talent is necessary to financially back emerging talent.
Getting support from investors is a cheaper way for aspiring music artists to fund their careers than signing a hefty deal with a record label. In return, the investors hope their songs' popularity touches the sky so they can earn more money than they invested.
It's also important to realize that not many record labels know how to make things happen anymore, thanks to the complications in music promotion introduced by social media. So, investing in emerging music artists and becoming their vocal cheerleaders makes sense.
Related: From Techno to 'Tech.-Yes'! How Technology is Revolutionising the Music Industry
3. It fuels employment and economic growth
As music fans, we know the power of music to connect us, lift our spirits and even bring us to tears. Music is more than just entertainment; it's an integral part of our culture and an engine for economic growth.
Per the latest report, the music industry contributes $170 billion to the annual GDP and supports 2.5 million jobs in the US.
Hence, investing in music talent means more than just helping a few artists make it big. It can create jobs and help drive economic growth, serving as a powerful asset that can be used to drive tourism, stimulate businesses and create jobs directly in the music industry, as well as in related sectors such as sales, marketing, promotion and more.
Additionally, investing in music talent helps promote innovation and creativity. When artists push the boundaries of what's possible in music, it can lead to the creation of new technologies, products and services, creating new employment opportunities in the long term.
Supporting music talent can also contribute to the culture and identity of a city or region. It can bring people together, bridging different cultures and creating a more vibrant and diverse place to live, work and play.
The youth, in particular, can enjoy a promising source of employment in an industry where investing in emerging music artists becomes a norm. A strong music community attracts skilled young workers in all sectors seeking a better quality of life, attracting significant business investment.
What are some other ways to support emerging music artists?
There are several ways to support emerging musicians. One of the most effective is by attending live shows. Going to shows helps create a buzz around an artist and helps them build a following. It also helps generate more money for the artist, which can be used to fund their career. Additionally, attending shows can help build relationships between the artist, industry personnel and fans.
Streaming songs is another excellent way to support emerging music artists. This can be done through Spotify, Apple Music and YouTube Music. Streaming helps put new music in front of people and can help build an up-and-coming artist's career. It also helps generate income for the artist, as streaming services often pay out royalties for each stream.
Lastly, purchasing music is a great way to show your support for an artist, as it directly benefits them financially. This can be done through traditional physical formats, such as CDs and vinyl, or digital formats, such as downloads or streaming subscriptions.
Summing it up
The music industry has been around for centuries as a driving force of the economy, as it contributes to the GDP of many nations more than other sectors. Investing in emerging music talent is essential to the growth and sustainability of the music business and the overall economy.
The music industry has also been an important source of entertainment for the masses. By investing in emerging music talent, the industry can bring fresh ideas, new sounds and innovative music creation methods. This, in turn, will help create a vibrant and diverse music landscape and provide a platform for the new generation of musicians to showcase their work, which is essential for its continued success.
And, of course, it's an awesome feeling when the artists you support make it to the top. It feels surreal to know you've witnessed their growth from a small artist into a recognized talent.
