Record labels sign, fund, release and market recordings. They range from global corporations to one-person independent labels run from a bedroom. Knowing how they are organised helps you understand who does what - and who to talk to.
Majors and independents
- Major label groups - the three global companies: Universal Music Group, Sony Music Entertainment and Warner Music Group. Each owns many labels and imprints, a publishing company, and its own distribution.
- Independent labels - not owned by a major. They range from large independents with global reach to small specialist labels. Many work with independent distributors, though some are distributed by the majors.
Labels, imprints and groups
A major label group contains many labels, each with its own identity, roster and staff - sometimes called imprints. Some are historic names; others are newer brands focused on particular genres or audiences. Majors also own or partner with distribution and label services companies that serve independent artists and labels.
Departments inside a label
- A&R (Artists and Repertoire) - finds and signs artists, and oversees the creative development of records: songs, producers, recording.
- Marketing - plans and runs campaigns: release strategy, content, advertising, partnerships.
- Promotion - radio and press.
- Digital - streaming platform relationships, playlists, social media and data.
- Sync and licensing - placing recordings in film, TV, adverts and games.
- Creative - artwork, video and visual identity.
- Business affairs and legal - contracts and negotiations.
- Finance and royalties - budgets, accounting and royalty statements.
- International - releasing and promoting across territories.
- Sales and distribution - getting music into stores and services.
Smaller labels combine these roles, sometimes into one or two people.
How labels make money
- Recorded music income - streaming, downloads and physical sales.
- Licensing - sync, compilations, samples.
- Neighbouring rights - from public performance and broadcast of recordings.
- Other rights - in 360 deals, a share of live, merchandise and other income.
How labels spend money
- Advances to artists.
- Recording costs.
- Marketing and promotion.
- Videos and content.
- Staff and overheads.
Most signings do not recoup. Labels rely on a small number of successes to fund everything else - which is why they seek ownership and long terms, and why artists should understand what they are signing.
Catalogue
Labels' back catalogues - their older recordings - generate steady income for decades. Catalogue value is one reason recordings have become valuable assets bought and sold by investors.
Do this now
- Choose a major label group and map three of its labels and the artists on them.
- Find an independent label in your genre and research its roster, distribution and how it accepts demos.
- Write a short description of what each label department would do for your next release.