Record label

A record label is a special brand or name that represents a company that works with music recordings and music videos. It can also refer to the actual company that owns this brand. Record labels help create, produce, and share music and videos. They also handle important tasks like making sure the music gets to stores, online services, and radio stations. They find new artists, help them develop their skills, and manage contracts with performers and their managers.

Big record labels, often called the "Big Three," include Universal Music Group, Sony Music Entertainment, and Warner Music Group. These large companies have been very important in helping musicians reach more fans. They provide support for marketing, promotion, and getting music onto streaming services, radio, and television.

Record labels also work with publicists who help performers get good news stories and coverage. They make sure fans can buy merchandise related to their favorite artists in stores and online. The idea of a record label comes from the label in the middle of old vinyl records that showed the company's name and other details.

Major versus independent record labels

Record labels can be small and local, called "independent" or "indie," or they can be part of very large companies that work all around the world. A big company that sells more than 5% of all the records and music videos in the world is called a "major" label. As of 2012, only three companies were considered major labels: Sony Music Group, Universal Music Group, and Warner Music Group. In 2014, it was estimated that these major labels controlled about 65–70% of the global music market.

Major labels

Present

Past

Record labels are often part of big companies called music groups. These music groups are usually linked to very large international companies that have many different types of businesses. A music group looks after music-publishing companies, makers of records, distributors, and the record labels themselves. Sometimes, these companies are called divisions of the bigger music group.

From 1929 to 1998, there were six big record labels known as the Big Six. In 1999, one of these labels joined another, leaving five big labels known as the Big Five. Later, in 2004, two of these labels joined together to form a new label. By 2007, the four biggest labels controlled most of the music sold around the world and in the United States. In 2012, parts of another big label were sold to different companies, leaving just three major labels. By 2020 and 2021, two of these big labels began trading independently on stock markets, while one remained fully owned by a larger company.

Independent

Main article: Independent record label

Record labels that are not part of the biggest companies are called independent labels, often just called "indie." These labels may be large, but they are not controlled by the biggest music companies. Many people think indie labels are better for artists because they often share profits more fairly, sometimes giving artists half of the profits. These labels are usually smaller and cannot spend as much money as the big companies, but they can make music for less money. Sometimes famous artists choose to work with indie labels after their big contracts end because they like having more control over their music and keeping more of the money they earn.

Some indie labels become so successful that big music companies want to work with them. Sometimes the big companies help to share the music, or they might even buy the indie label, but it can still keep its own name.

Imprint

See also: Imprint (trade name)

An imprint is a special name used by a record label, similar to a brand. It acts like a smaller part of a bigger company but usually doesn’t work as a separate business. Sometimes, a record label uses an imprint to give a special name to a musical act or for other projects.

Imprints can be thought of as different names under one big label, even if they don’t have their own separate offices or teams.

Sublabel

Music collectors use the term sublabel to talk about smaller parts of bigger music companies. For example, in the 1980s and 1990s, a brand called 4th & B'way Records was owned by a larger company, Island Records. On records made in the United States, you would see the 4th & B'way logo and small writing saying it was part of Island Records, Inc. Collectors might say 4th & B'way was a sublabel of Island Records. Over time, companies like Island Records changed owners through mergers, making it tricky to know which company was the "parent" of any sublabels.

Vanity labels

Main article: Vanity label

Some labels look like they belong to an artist, but they are actually regular labels. In these cases, the artist only controls the name used on the label, but might have more control over how their music looks. For example, there was a label called Neutron owned by ABC in the UK. An artist named Lizzie Tear used it, but the label mostly featured ABC's music.

Sometimes, artists start their own labels early in their careers, and later a bigger company buys it. This can give the artist more freedom. For example, Trent Reznor of Nine Inch Nails owned a label called Nothing Records, and the band Cooper Temple Clause owned Morning Records before it was bought by RCA.

Relationship with artists

When an artist and a record label decide to work together, they usually sign a contract. This contract is often exclusive, meaning the artist agrees to let the label market their music in return for a share of the money made from sales, called royalties. Contracts can last for different lengths of time and might cover specific songs or whole albums.

Sometimes, labels help artists make their recordings by choosing producers, studios, and even songs. But not always; sometimes artists already have their music ready. Working together can be tricky. Labels might change an artist's song titles or artwork before releasing the music, believing it will sell better. Sadly, some labels might even stop promoting an artist's album altogether, leaving the artist waiting without any support. Technology like the internet has changed this relationship, letting artists share their music directly with fans, but many still need labels for wider reach and support.

Main article: Artists & Repertoire
Main articles: recording contract, royalties

New label strategies

Computers and the internet made it easier for people to share music, which led to fewer music sales. Because of this, record labels had to change how they work with artists. Now, there are special deals called "360" deals. In these deals, labels get a share of an artist's money from tours, merchandise, and endorsements. In return, labels give artists more money upfront and are more patient while the artist grows. These deals work best for artists who already have many fans.

One record label, Atlantic Records, showed how these deals can work. They might give an artist some money to start, and then offer more money later in exchange for a share of the artist's income from tours, selling items, and other deals. The label can also help plan the artist's tour dates and approve some of the artist's staff. The label might also share a part of its profit from album sales with the artist.