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A record label, or record company, is a
brand A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create an ...
or
trademark A trademark (also written trade mark or trade-mark) is a type of intellectual property consisting of a recognizable sign, design, or expression that identifies products or services from a particular source and distinguishes them from ot ...
of music recordings and
music videos A music video is a video of variable duration, that integrates a music song or a music album with imagery that is produced for promotional or musical artistic purposes. Modern music videos are primarily made and used as a music marketing device ...
, or the company that owns it. Sometimes, a record label is also a
publishing Publishing is the activity of making information, literature, music, software and other content available to the public for sale or for free. Traditionally, the term refers to the creation and distribution of printed works, such as books, newsp ...
company that manages such brands and trademarks, coordinates the production,
manufacture Manufacturing is the creation or Production (economics), production of goods with the help of equipment, Work (human activity), labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary secto ...
,
distribution Distribution may refer to: Mathematics * Distribution (mathematics), generalized functions used to formulate solutions of partial differential equations *Probability distribution, the probability of a particular value or value range of a vari ...
, marketing, promotion, and enforcement of
copyright A copyright is a type of intellectual property that gives its owner the exclusive right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, educatio ...
for sound recordings and music videos, while also conducting talent scouting and development of new artists, and maintaining
contracts A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tr ...
with recording artists and their managers. The term "record label", derives from the circular label in the center of a vinyl record which prominently displays the manufacturer's name, along with other information. Within the mainstream
music industry The music industry consists of the individuals and organizations that earn money by writing songs and musical compositions, creating and selling recorded music and sheet music, presenting concerts, as well as the organizations that aid, train, ...
, recording artists have traditionally been reliant upon record labels to broaden their consumer base, market their albums, and promote their singles on streaming services, radio, and television. Record labels also provide
publicist A publicist is a person whose job is to generate and manage publicity for a company, a brand, or public figure – especially a celebrity – or for a work such as a book, film, or album. Publicists are public relations specialists who ...
s, who assist performers in gaining positive media coverage, and arrange for their merchandise to be available via stores and other media outlets.


Major versus independent record labels

Record labels may be small, localized and "
independent Independent or Independents may refer to: Arts, entertainment, and media Artist groups * Independents (artist group), a group of modernist painters based in the New Hope, Pennsylvania, area of the United States during the early 1930s * Independe ...
" ("indie"), or they may be part of a large international media group, or somewhere in between. The
Association of Independent Music The Association of Independent Music (AIM) is a non-profit trade body established in 1998 by UK independent record labels to represent the independent record sector, which in 2016 constituted approximately 23% of the UK market. Its members incl ...
(AIM) defines a 'major' as "a multinational company which (together with the companies in its group) has more than 5% of the world market(s) for the sale of records or music videos." As of 2012, there are only three labels that can be referred to as "major labels" (
Universal Music Group Universal Music Group N.V. (often abbreviated as UMG and referred to as just Universal Music) is a Dutch–American multinational music corporation under Dutch law. UMG's corporate headquarters are located in Hilversum, Netherlands and its ...
,
Sony Music Entertainment Sony Music Entertainment (SME), also known as simply Sony Music, is an American multinational music company. Being owned by the parent conglomerate Sony Group Corporation, it is part of the Sony Music Group, which is owned by Sony Entertainmen ...
, and
Warner Music Group Warner Music Group Corp. ( d.b.a. Warner Music Group, commonly abbreviated as WMG) is an American multinational entertainment and record label conglomerate headquartered in New York City. It is one of the " big three" recording companies and th ...
). In 2014, AIM estimated that the majors had a collective global market share of some 65–70%.


Major labels


Present


Past

Record labels are often under the control of a corporate umbrella organization called a "music
group A group is a number of persons or things that are located, gathered, or classed together. Groups of people * Cultural group, a group whose members share the same cultural identity * Ethnic group, a group whose members share the same ethnic ide ...
". A music group is usually affiliated to an international
conglomerate Conglomerate or conglomeration may refer to: * Conglomerate (company) * Conglomerate (geology) * Conglomerate (mathematics) In popular culture: * The Conglomerate (American group), a production crew and musical group founded by Busta Rhymes ** ...
"
holding company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...
", which often has non-music divisions as well. A music group controls and consists of music-publishing companies, record (sound recording) manufacturers, record distributors, and record labels. Record companies (manufacturers, distributors, and labels) may also constitute a "record group" which is, in turn, controlled by a music group. The constituent companies in a music group or record group are sometimes marketed as being "divisions" of the group. From 1929 to 1998, there were six major record labels, known as the Big Six: #
Warner Music Group Warner Music Group Corp. ( d.b.a. Warner Music Group, commonly abbreviated as WMG) is an American multinational entertainment and record label conglomerate headquartered in New York City. It is one of the " big three" recording companies and th ...
# EMI #
Sony Music Sony Music Entertainment (SME), also known as simply Sony Music, is an American multinational music company. Being owned by the parent conglomerate Sony Group Corporation, it is part of the Sony Music Group, which is owned by Sony Entertainmen ...
(Known as CBS Records until January 1991) # BMG (Formed in 1984 as RCA/Ariola International) #
Universal Music Group Universal Music Group N.V. (often abbreviated as UMG and referred to as just Universal Music) is a Dutch–American multinational music corporation under Dutch law. UMG's corporate headquarters are located in Hilversum, Netherlands and its ...
(Known as MCA Music until 1996) #
PolyGram PolyGram N.V. was a multinational entertainment company and major music record label formerly based in the Netherlands. It was founded in 1962 as the Grammophon-Philips Group by Dutch corporation Philips and German corporation Siemens, to be a ...
PolyGram was merged into Universal Music Group (UMG) in 1999, leaving the rest to be known as the Big Five. In 2004, Sony and BMG agreed to a joint venture and merged their recorded music division to create the
Sony BMG Sony BMG Music Entertainment was an American record company owned as a 50–50 joint venture between Sony Corporation of America and Bertelsmann. The venture's successor, the revived Sony Music, is wholly owned by Sony, following their buyou ...
label (which would be renamed Sony Music Entertainment after a 2008 merger); BMG kept its music publishing division separate from Sony BMG and later sold BMG Music Publishing to UMG. In 2007, the four remaining companies—known as the Big Four—controlled about 70% of the
world music market The music industry consists of the individuals and organizations that earn money by writing songs and musical compositions, creating and selling recorded music and sheet music, presenting concerts, as well as the organizations that aid, train, ...
, and about 80% of the United States music market. In 2012, the major divisions of EMI were sold off separately by owner
Citigroup Citigroup Inc. or Citi ( stylized as citi) is an American multinational investment bank and financial services corporation headquartered in New York City. The company was formed by the merger of banking giant Citicorp and financial conglomera ...
: most of EMI's recorded music division was absorbed into UMG; EMI Music Publishing was absorbed into Sony/ATV Music Publishing; finally, EMI's
Parlophone Parlophone Records Limited (also known as Parlophone Records and Parlophone) is a German–British record label founded in Germany in 1896 by the Carl Lindström Company as Parlophon. The British branch of the label was founded on 8 August 192 ...
and
Virgin Classics Virgin Classics was a record label founded in 1988 as part of Richard Branson's Virgin Records. The unit, along with EMI Classics, was acquired by Universal Music in 2012 as part of the takeover of the EMI Group, however the terms of the Europea ...
labels were absorbed into
Warner Music Warner Music Group Corp. ( d.b.a. Warner Music Group, commonly abbreviated as WMG) is an American multinational entertainment and record label conglomerate headquartered in New York City. It is one of the " big three" recording companies and th ...
Group (WMG) in July 2013. This left the so-called Big Three labels. In 2020 and 2021, both WMG and UMG had their IPO with WMG started trading at
Nasdaq The Nasdaq Stock Market () (National Association of Securities Dealers Automated Quotations Stock Market) is an American stock exchange based in New York City. It is the most active stock trading venue in the US by volume, and ranked second ...
and UMG started trading at
Euronext Amsterdam Euronext Amsterdam is a stock exchange based in Amsterdam, the Netherlands. Formerly known as the Amsterdam Stock Exchange, it merged on 22 September 2000 with the Brussels Stock Exchange and the Paris Stock Exchange to form Euronext. The ...
and leaving only Sony Music as wholly-owned subsidiary of an international conglomerate (
Sony Entertainment Sony Entertainment, Inc. is an American entertainment company established in 2012. It focuses on most of Sony's motion picture, television and music businesses. It is a subsidiary of the Japanese Sony Group Corporation, managed by Sony's Americ ...
which in turn owned by Sony Group Corporation).


Independent

Record labels and music publishers that are not under the control of the big three are generally considered to be ''independent'' ('' indie''), even if they are large corporations with complex structures. The term ''indie label'' is sometimes used to refer to only those independent labels that adhere to independent criteria of corporate structure and size, and some consider an indie label to be almost any label that releases non-mainstream music, regardless of its corporate structure. Independent labels are often considered more artist-friendly. Though they may have less financial clout, indie labels typically offer larger artist royalty with a 50% profit-share agreement, aka 50–50 deal, not uncommon. In addition, independent labels are often artist-owned (although not always), with a stated intent often being to control the quality of the artist's output. Independent labels usually do not enjoy the resources available to the "big three" and as such will often lag behind them in market shares. However, frequently independent artists manage a return by recording for a much smaller production cost of a typical big label release. Sometimes they are able to recoup their initial advance even with much lower sales numbers. On occasion, established artists, once their record contract has finished, move to an independent label. This often gives the combined advantage of name recognition and more control over one's music along with a larger portion of royalty profits. Artists such as
Dolly Parton Dolly Rebecca Parton (born January 19, 1946) is an American singer-songwriter, actress, philanthropist, and businesswoman, known primarily for her work in country music. After achieving success as a songwriter for others, Parton made her album ...
,
Aimee Mann Aimee Elizabeth Mann (born September 8, 1960) is an American singer-songwriter. Over the course of four decades, she has released more than a dozen albums as a solo artist and with other musicians. She is noted for her sardonic and literate lyr ...
,
Prince A prince is a male ruler (ranked below a king, grand prince, and grand duke) or a male member of a monarch's or former monarch's family. ''Prince'' is also a title of nobility (often highest), often hereditary, in some European states. ...
,
Public Enemy "Public enemy" is a term which was first widely used in the United States in the 1930s to describe individuals whose activities were seen as criminal and extremely damaging to society, though the phrase had been used for centuries to describe ...
, among others, have done this. Historically, companies started in this manner have been re-absorbed into the major labels (two examples are American singer
Frank Sinatra Francis Albert Sinatra (; December 12, 1915 – May 14, 1998) was an American singer and actor. Nicknamed the " Chairman of the Board" and later called "Ol' Blue Eyes", Sinatra was one of the most popular entertainers of the 1940s, 1950s, and ...
's
Reprise Records Reprise Records is an American record label founded in 1960 by Frank Sinatra. It is owned by Warner Music Group, and operates through Warner Records, one of its flagship labels. Artists currently signed to Reprise Records include Enya, Michael ...
, which has been owned by
Warner Music Group Warner Music Group Corp. ( d.b.a. Warner Music Group, commonly abbreviated as WMG) is an American multinational entertainment and record label conglomerate headquartered in New York City. It is one of the " big three" recording companies and th ...
for some time now, and musician
Herb Alpert Herb Alpert (born March 31, 1935) is an American trumpeter who led the band Herb Alpert & the Tijuana Brass in the 1960s. During the same decade, he co-founded A&M Records with Jerry Moss. Alpert has recorded 28 albums that have landed on the ...
's
A&M Records A&M Records was an American record label founded as an independent company by Herb Alpert and Jerry Moss in 1962. Due to the success of the discography A&M released, the label garnered interest and was acquired by PolyGram in 1989 and began distr ...
, now owned by Universal Music Group). Similarly,
Madonna Madonna Louise Ciccone (; ; born August 16, 1958) is an American singer-songwriter and actress. Widely dubbed the " Queen of Pop", Madonna has been noted for her continual reinvention and versatility in music production, songwriting, a ...
's Maverick Records (started by Madonna with her manager and another partner) was to come under control of Warner Music when Madonna divested herself of controlling shares in the company. Some independent labels become successful enough that major record companies negotiate contracts to either distribute music for the label or in some cases, purchase the label completely, to the point where it functions as an imprint or sublabel.


Imprint

A label used as a trademark or brand and not a company is called an
imprint Imprint or imprinting may refer to: Entertainment * ''Imprint'' (TV series), Canadian television series * "Imprint" (''Masters of Horror''), episode of TV show ''Masters of Horror'' * ''Imprint'' (film), a 2007 independent drama/thriller film ...
, a term used for the same concept in
publishing Publishing is the activity of making information, literature, music, software and other content available to the public for sale or for free. Traditionally, the term refers to the creation and distribution of printed works, such as books, newsp ...
. An imprint is sometimes marketed as being a "project", "unit", or "division" of a record label, even though there is no legal business structure associated with the imprint. A record company may use an imprint to market a particular genre of music, such as
jazz Jazz is a music genre that originated in the African-American communities of New Orleans, Louisiana in the late 19th and early 20th centuries, with its roots in blues and ragtime. Since the 1920s Jazz Age, it has been recognized as a m ...
,
blues Blues is a music genre and musical form which originated in the Deep South of the United States around the 1860s. Blues incorporated spirituals, work songs, field hollers, shouts, chants, and rhymed simple narrative ballads from the ...
,
country music Country (also called country and western) is a genre of popular music that originated in the Southern and Southwestern United States in the early 1920s. It primarily derives from blues, church music such as Southern gospel and spirituals, ...
, or
indie rock Indie rock is a subgenre of rock music that originated in the United States, United Kingdom and New Zealand from the 1970s to the 1980s. Originally used to describe independent record labels, the term became associated with the music they produ ...
.


Sublabel

Music collectors often use the term ''sublabel'' to refer to either an imprint or a subordinate label company (such as those within a group). For example, in the 1980s and 1990s, 4th & B'way Records (pronounced as "Broadway") was a trademarked brand owned by
Island Records Island Records is a multinational record label owned by Universal Music Group. It was founded in 1959 by Chris Blackwell, Graeme Goodall, and Leslie Kong in Jamaica, and was eventually sold to PolyGram in 1989. Island and A&M Records, anothe ...
Ltd. in the UK and by a subordinate branch, Island Records, Inc., in the United States. The center label on a 4th & Broadway record marketed in the United States would typically bear a 4th & B'way logo and would state in the fine print, "4th & B'way™, an Island Records, Inc. company". Collectors discussing labels as brands would say that 4th & B'way is a sublabel or imprint of just "Island" or "Island Records". Similarly, collectors who choose to treat corporations and trademarks as equivalent might say 4th & B'way is an imprint and/or sublabel of both Island Records, Ltd. and that company's sublabel, Island Records, Inc. However, such definitions are complicated by the corporate
merger Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspec ...
s that occurred in 1989 (when Island was sold to PolyGram) and 1998 (when PolyGram merged with Universal). PolyGram held sublabels including Mercury, Island and Motown. Island remained registered as corporations in both the United States and UK, but control of its brands changed hands multiple times as new companies were formed, diminishing the corporation's distinction as the "parent" of any sublabels.


Vanity labels

Vanity labels are labels that bear an imprint that gives the impression of an artist's ownership or control, but in fact represent a standard artist/label relationship. In such an arrangement, the artist will control nothing more than the usage of the name on the label, but may enjoy a greater say in the packaging of their work. An example of such a label is the Neutron label owned by ABC while at Phonogram Inc. in the UK. At one point artist Lizzie Tear (under contract with ABC themselves) appeared on the imprint, but it was devoted almost entirely to ABC's offerings and is still used for their re-releases (though Phonogram owns the masters of all the work issued on the label). However, not all labels dedicated to particular artists are completely superficial in origin. Many artists, early in their careers, create their own labels which are later bought out by a bigger company. If this is the case it can sometimes give the artist greater freedom than if they were signed directly to the big label. There are many examples of this kind of label, such as Nothing Records, owned by
Trent Reznor Michael Trent Reznor (born May 17, 1965) is an American musician, singer, songwriter, record producer, and composer. He serves as the lead vocalist, multi-instrumentalist, and principal songwriter of the industrial rock band Nine Inch Nails, wh ...
of
Nine Inch Nails Nine Inch Nails, commonly abbreviated as NIN and stylized as NIИ, is an American industrial rock band formed in Cleveland in 1988. Singer, songwriter, multi-instrumentalist, and producer Trent Reznor was the only permanent member of the band ...
; and Morning Records, owned by the
Cooper Temple Clause The Cooper Temple Clause was an English alternative rock band, formed in Wokingham, Berkshire in 1998. The band released three albums before announcing their split on 24 April 2007, following the departure of Daniel Fisher. After signing a rec ...
, who were releasing EPs for years before the company was bought by
RCA The RCA Corporation was a major American electronics company, which was founded as the Radio Corporation of America in 1919. It was initially a patent trust owned by General Electric (GE), Westinghouse, AT&T Corporation and United Fruit Comp ...
.


Relationship with artists

A label typically enters into an exclusive
recording contract A recording contract (commonly called a record contract or record deal) is a legal agreement between a record label and a recording artist (or group), where the artist makes a record (or series of records) for the label to sell and promote. Artists ...
with an artist to market the artist's recordings in return for
royalties A royalty payment is a payment made by one party to another that owns a particular asset, for the right to ongoing use of that asset. Royalties are typically agreed upon as a percentage of gross or net revenues derived from the use of an asset o ...
on the selling price of the recordings. Contracts may extend over short or long durations, and may or may not refer to specific recordings. Established, successful artists tend to be able to renegotiate their contracts to get terms more favorable to them, but
Prince A prince is a male ruler (ranked below a king, grand prince, and grand duke) or a male member of a monarch's or former monarch's family. ''Prince'' is also a title of nobility (often highest), often hereditary, in some European states. ...
's much-publicized 1994–1996 feud with Warner Bros. Records provides a strong counterexample, as does
Roger McGuinn James Roger McGuinn (born James Joseph McGuinn III; July 13, 1942) is an American musician. He is best known for being the frontman and leader of the Byrds. He was inducted into the Rock and Roll Hall of Fame for his work with the Byrds. As a ...
's claim, made in July 2000 before a US Senate committee, that
the Byrds The Byrds () were an American rock band formed in Los Angeles, California, in 1964. The band underwent multiple lineup changes throughout its existence, with frontman Roger McGuinn (known as Jim McGuinn until mid-1967) remaining the sole con ...
never received any of the royalties they had been promised for their biggest hits, " Mr. Tambourine Man" and " Turn! Turn!, Turn!". A contract either provides for the artist to deliver completed recordings to the label, or for the label to undertake the recording with the artist. For artists without a recording history, the label is often involved in selecting producers,
recording studio A recording studio is a specialized facility for sound recording, mixing, and audio production of instrumental or vocal musical performances, spoken words, and other sounds. They range in size from a small in-home project studio large enou ...
s, additional musicians, and songs to be recorded, and may supervise the output of recording sessions. For established artists, a label is usually less involved in the recording process. The relationship between record labels and artists can be a difficult one. Many artists have had conflicts with their labels over the type of sound or songs they want to make, which can result in the artist's artwork or titles being changed before release. Other artists have had their music prevented from release, or shelved. Record labels generally do this because they believe that the album will sell better if the artist complies with the label's desired requests or changes. At times, the record label's decisions are prudent ones from a commercial perspective, but these decisions may frustrate artists who feel that their art is being diminished or misrepresented by such actions. In other instances, record labels have shelved artists' albums with no intention of any promotion for the artist in question. Reasons for shelving can include the label deciding to focus its resources on other artists on its roster, or the label undergoing a restructure where the person that signed the artist and supports the artist's vision is no longer present to advocate for the artist. In extreme cases, record labels can prevent the release of an artist's music for years, while also declining to release the artist from their contract, leaving the artist in a state of limbo. Artists who have had disputes with their labels over ownership and control of their music have included
Taylor Swift Taylor Alison Swift (born December 13, 1989) is an American singer-songwriter. Her discography spans multiple genres, and her vivid songwriting—often inspired by her personal life—has received critical praise and wide media coverage. Bo ...
,
Tinashe Tinashe Jorgensen Kachingwe ( ; born February 6, 1993), known mononymously as Tinashe, is an American singer, dancer, and actress. Born in Lexington, Kentucky, Tinashe moved to Pasadena as a child to pursue a career in entertainment. Her notab ...
,
Megan Thee Stallion Megan Jovon Ruth Pete (born February 15, 1995), known professionally as Megan Thee Stallion (pronounced "Megan the Stallion"), is an American rapper and songwriter. Originally from Houston, Texas, she first garnered attention when videos of her ...
,
Kelly Clarkson Kelly Brianne Clarkson (born April 24, 1982) is an American singer, songwriter, author, and television personality. She rose to fame after winning the first season of '' American Idol'' in 2002, which earned her a record deal with RCA. Her de ...
,
Thirty Seconds to Mars Thirty Seconds to Mars (commonly stylized as 30 Seconds to Mars) is an American rock band from Los Angeles, California, formed in 1998. The band consists of brothers Jared Leto (lead vocals, guitar, bass, keyboards) and Shannon Leto (drums, ...
,
Clipse Clipse, also known as The Clipse, is an American hip hop duo, chiefly active from 1994 to 2010. It consists of brothers Gene "No Malice" and Terrence "Pusha T" Thornton. Pusha T was known as Terrar during the group's early years, while No Mal ...
,
Ciara Ciara Princess Wilson ( ; Harris; born October 25, 1985) is an American singer, songwriter, actress, model and entrepreneur. She released her debut studio album, '' Goodies'' in 2004, which spawned four singles: " Goodies" (featuring Petey Pa ...
,
JoJo Jojo, JoJo or Jo Jo is a given name, surname, nickname or stage name used by several people and fictional characters, including: People with the given name, nickname or stage name Musicians *JoJo (singer) (born 1990), American R&B singer, songwri ...
,
Michelle Branch Michelle Jacquet DeSevren Branch (born July 2, 1983) is an American singer, songwriter, and guitarist. During the early 2000s, she released two top-selling albums: ''The Spirit Room'' and ''Hotel Paper.'' She won a Grammy Award for Best Pop Coll ...
,
Kesha Kesha Rose Sebert (; born March 1, 1987), formerly stylized as Ke$ha, is an American singer and songwriter. In 2005, at age 18, Kesha was signed to Kemosabe Records. Her first major success came in early 2009 after she was featured on Americ ...
,
Kanye West Ye ( ; born Kanye Omari West ; June 8, 1977) is an American rapper, singer, songwriter, record producer, and fashion designer. Born in Atlanta and raised in Chicago, West gained recognition as a producer for Roc-A-Fella Records in the ea ...
,
Lupe Fiasco Wasalu Muhammad Jaco (born February 16, 1982), better known by his stage name Lupe Fiasco ( ), is an American rapper, singer, record producer, and entrepreneur. He rose to fame in 2006 following the success of his debut album, '' Lupe Fiasco's ...
,
Paul McCartney Sir James Paul McCartney (born 18 June 1942) is an English singer, songwriter and musician who gained worldwide fame with the Beatles, for whom he played bass guitar and shared primary songwriting and lead vocal duties with John Lennon. One ...
, and
Johnny Cash John R. Cash (born J. R. Cash; February 26, 1932 – September 12, 2003) was an American country singer-songwriter. Much of Cash's music contained themes of sorrow, moral tribulation, and redemption, especially in the later stages of his c ...
. In the early days of the recording industry, recording labels were absolutely necessary for the success of any artist. The first goal of any new artist or band was to get signed to a contract as soon as possible. In the 1940s, 1950s, and 1960s, many artists were so desperate to sign a contract with a record company that they sometimes ended up signing agreements in which they sold the rights to their recordings to the record label in perpetuity.
Entertainment law Entertainment law, also referred to as media law, is legal services provided to the entertainment industry. These services in entertainment law overlap with intellectual property law. Intellectual property has many moving parts that include trad ...
yers are usually employed by artists to discuss contract terms. Due to advancing technology such as the
Internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, p ...
, the role of labels is rapidly changing, as artists are able to freely distribute their own material through
online radio Online radio (also web radio, net radio, streaming radio, e-radio, IP radio, Internet radio) is a digital audio service transmitted via the Internet. Broadcasting on the Internet is usually referred to as webcasting since it is not transmitte ...
,
peer-to-peer Peer-to-peer (P2P) computing or networking is a distributed application architecture that partitions tasks or workloads between peers. Peers are equally privileged, equipotent participants in the network. They are said to form a peer-to-peer ...
file sharing such as BitTorrent, and other services, at little to no cost, but with correspondingly low financial returns. Established artists, such as
Nine Inch Nails Nine Inch Nails, commonly abbreviated as NIN and stylized as NIИ, is an American industrial rock band formed in Cleveland in 1988. Singer, songwriter, multi-instrumentalist, and producer Trent Reznor was the only permanent member of the band ...
, whose career was developed with major label backing, announced an end to their major label contracts, citing that the uncooperative nature of the recording industry with these new trends is hurting musicians, fans and the industry as a whole. However, Nine Inch Nails later returned to working with a major label, admitting that they needed the international marketing and promotional reach that a major label can provide.
Radiohead Radiohead are an English rock band formed in Abingdon, Oxfordshire, in 1985. The band consists of Thom Yorke (vocals, guitar, piano, keyboards); brothers Jonny Greenwood (lead guitar, keyboards, other instruments) and Colin Greenwood (bass ...
also cited similar motives with the end of their contract with EMI when their album ''
In Rainbows ''In Rainbows'' is the seventh studio album by the English rock band Radiohead. It was self-released on 10 October 2007 as a pay-what-you-want download, followed by a physical release internationally through XL Recordings and in North America ...
'' was released as a "
pay what you want Pay what you want (or PWYW, also referred to as value-for-value model) is a pricing strategy where buyers pay their desired amount for a given commodity. This amount can sometimes include zero. A minimum (floor) price may be set, and/or a suggest ...
" sales model as an online download, but they also returned to a label for a conventional release. Research shows that record labels still control most access to distribution.


New label strategies

Computers and internet technology led to an increase in file sharing and direct-to-fan digital distribution, causing music sales to plummet in recent years. Labels and organizations have had to change their strategies and the way they work with artists. New types of deals called "multiple rights" or "360" deals are being made with artists, where labels are given rights and percentages to artist's touring, merchandising, and endorsements. In exchange for these rights, labels usually give higher advance payments to artists, have more patience with artist development, and pay higher percentages of CD sales. These 360 deals are most effective when the artist is established and has a loyal fan base. For that reason, labels now have to be more relaxed with the development of artists because longevity is the key to these types of pact. Several artists such as
Paramore Paramore is an American Rock music, rock band from Franklin, Tennessee, formed in 2004. The band currently consists of lead vocalist Hayley Williams, guitarist Taylor York and drummer Zac Farro. Williams and Farro are founding members of the ...
,
Maino Maino may refer to: *Maino (rapper) Jermaine John Coleman (born August 30, 1978), better known by his stage name Maino, is an American rapper from Brooklyn, New York City. His debut single " Hi Hater" peaked at #16 on Billboard's Hot Rap Son ...
, and even
Madonna Madonna Louise Ciccone (; ; born August 16, 1958) is an American singer-songwriter and actress. Widely dubbed the " Queen of Pop", Madonna has been noted for her continual reinvention and versatility in music production, songwriting, a ...
have signed such types of deals. A look at an actual 360 deal offered by
Atlantic Records Atlantic Recording Corporation (simply known as Atlantic Records) is an American record label founded in October 1947 by Ahmet Ertegun and Herb Abramson. Over its first 20 years of operation, Atlantic earned a reputation as one of the most im ...
to an artist shows a variation of the structure. Atlantic's document offers a conventional cash advance to sign the artist, who would receive a royalty for sales after expenses were recouped. With the release of the artist's first album, however, the label has an option to pay an additional $200,000 in exchange for 30 percent of the net income from all touring, merchandise, endorsements, and fan-club fees. Atlantic would also have the right to approve the act's tour schedule, and the salaries of certain tour and merchandise sales employees hired by the artist. In addition, the label also offers the artist a 30 percent cut of the label's album profits—if any—which represents an improvement from the typical industry royalty of 15 percent.


Internet and digital labels

With the Internet now being a viable source for obtaining music, netlabels have emerged. Depending on the ideals of the net label, music files from the artists may be downloaded free of charge or for a fee that is paid via
PayPal PayPal Holdings, Inc. is an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper ...
or other online payment system. Some of these labels also offer hard copy CDs in addition to direct download. Digital Labels are the latest version of a 'net' label. Whereas 'net' labels were started as a free site, digital labels represent more competition for the major record labels.


Open-source labels

The new century brought the phenomenon of ''open-source'' or ''open-content'' record labels. These are inspired by the
free software Free software or libre software is computer software distributed under terms that allow users to run the software for any purpose as well as to study, change, and distribute it and any adapted versions. Free software is a matter of liberty, n ...
and
open source Open source is source code that is made freely available for possible modification and redistribution. Products include permission to use the source code, design documents, or content of the product. The open-source model is a decentralized so ...
movements and the success of
Linux Linux ( or ) is a family of open-source Unix-like operating systems based on the Linux kernel, an operating system kernel first released on September 17, 1991, by Linus Torvalds. Linux is typically packaged as a Linux distribution, whi ...
.


Publishers as labels

In the mid-2000s, some music publishing companies began undertaking the work traditionally done by labels. The publisher Sony/ATV Music, for example, leveraged its connections within the Sony family to produce, record, distribute, and promote Elliott Yamin's debut album under a dormant Sony-owned imprint, rather than waiting for a deal with a proper label.


Crowdfunded labels

In 2002,
ArtistShare ArtistShare is the internet's first commercial crowdfunding website.Crowd-Funding 101: What Every Musician Needs for a Successful Campaign It also operates as a record label and business model for artists which enables them to fund their projec ...
was founded as the Internet's first record label where the releases were directly funded by the artist's fans.


See also

*
List of record labels File:Alvinoreyguitarboogie.jpg File:AmMusicBunk78.jpg File:Bingola1011b.jpg Lists of record labels cover record labels, brands or trademarks associated with marketing of music recordings and music videos. The lists are organized alphabetically, b ...
*
Streaming media Streaming media is multimedia that is delivered and consumed in a continuous manner from a source, with little or no intermediate storage in network elements. ''Streaming'' refers to the delivery method of content, rather than the content i ...
*
White label A white label record is a vinyl record with white labels attached. There are several variations each with a different purpose. Variations include test pressings, white label promos, and plain white labels. Test pressings Test pressings, usua ...


References


External links

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