Record industry bosses hit back at the "myth" that musicians no longer need them to become successful, insisting the Internet can help raise their profile but cannot make them stars.

The success of the Arctic Monkeys, the British band who made their name through fan websites, and Radiohead's decision to release a 2007 album for free online, have sparked debate about whether record labels have had their day.

But a new report from the IFPI, which represents the global industry, has catalogued the millions of dollars required to break a new artist.

"There's not really any evidence of anybody succeeding going direct," said John Kennedy, IFPI's chairman, at the report's launch in London.

"Even artists who are typically described as having broken through the Internet, like the Arctic Monkeys, Lily Allen, or Sandi Thom, all ended up combining with conventional record labels."

Developing an online presence can get a band in "better shape" to negotiate a record deal, he acknowledged, but with 2.5 million hip hop acts and 1.8 million rock groups registered on MySpace, getting noticed was not easy.

"Trying to break through this is like screaming in space," he said.

What record labels can offer is expertise, such as in choosing the right song to release as a single, contacts, and above all, investment.

IFPI estimates that with the advance payment, recording the music, making music videos, arranging a tour and marketing the artist, a new pop act costs at least one million US dollars to break — and even this is conservative.

French DJ David Guetta, who is signed to EMI, said: "What I know is how to make music, but that is not enough. To reach the public, music needs to be known, it needs to be available to buy and it needs to be talked about."