A A company that invests in, manufactures, distributes, promotes, and monetizes sound recordings on behalf of the artist. invests in, manufactures, distributes, promotes, and The process of converting something into money. Typically, the recorded performance of a musical work protected as a phonogram under copyright law. on behalf of the In the context of music, a solo performer or group of performers who perform a musical work live or recorded..
This includes:
Investing in the development of the artist and their music
Organizing and supporting the recording process
Manufacturing and distributing both physical and digital formats to physical retailers and Digital Service Provider: an online platform that provides streaming or download services to consumers.
Submitting information relating to musical works and sound recordings to an appropriate registration body, for example, copyright ownership information submitted to a Collective Management Organization or copyright office. new sound recordings with An organization that acts collectively on behalf of the rights holders it represents and collects and pays remuneration to rights holders.
The process of granting permission to use copyrighted material, such as a musical work or sound recording. sound recordings for a wide range of uses, including digital streaming, download sales, and in films, TV shows, games, and commercials
Promoting and marketing artists and their sound recordings
Developing further revenue opportunities for artists and their music, for example, brand partnerships
What does a record label do?
Record labels offer artists Also referred to as a record deal or record contract; a legally enforceable agreement by which an artist gives a record label the right to make recordings of their performances, and to commercialize those recordings, usually in exchange for recording services, financing, promotion and royalty payments., also known as deals, which are exclusive agreements between the label and the artists.
Typically, on signing a recording contract, a record label will provide financial support in the form of an A payment made to creators before the musical work or sound recording is monetized. which is Able to be recouped, for example, money given to a creator can be paid back. on future earnings such as Money paid for the right to use a musical work, performance, or sound recording, typically, but not always, in the form of recurring payments..
Record labels support the artist during the recording process. An Artist & Repertoire: a department of professionals typically found in record labels and music publishers, who are responsible for discovering and nurturing talent, signing songwriters and performers to contracts, and overseeing their creative development. representative will help the artist and other Anyone who contributes to creating or performing a musical work, a live performance, or a sound recording. needed to record the album, recommend and appoint Sometimes called a studio producer or record producer, a person who typically helps a recording artist record a musical work. They are usually responsible for the entire recording process. and other collaborators, arrange time in recording studios, and give feedback on the recordings.
In most cases, record labels also pay for and deliver all the marketing, promotion, and The process of delivering sound recordings to DSPs and physical retailers. for the recordings as Items or services provided under agreement that their costs will be recouped, ie. paid back. Launching campaigns for the release of new music can be expensive and require a significant amount of time, resources, and expertise. Having a record label's team of experienced specialists on hand can be highly beneficial to a creator.
Record labels are usually entitled to the Under copyright law, the person or company responsible for the creation of the sound recording. The controls creators or rights holders have over what they have created or produced and over their identity and image. and income share. They may also administer rights and royalties of the artists and other In the context of music, a creator playing a musical work live or on a sound recording. they represent and pay them according to the recording contract. They also have a role in ensuring that the An original musical composition with or without lyrics. they record are licensed from their songwriters and A company that represents songwriters, supporting their career development, monetizing musical works, and protecting copyrights. for the The right to reproduce and distribute a musical work. needed for Tangible items such as CDs, vinyl records, and cassettes. and digital distribution.
Record labels develop further revenue and promotional opportunities for artists and their music. For example, they have brand partnership teams that will look for ways for an artist to collaborate with a brand of products or services that can help promote the music.
They also have a department or team, called a sync team, tasked with licensing sound recordings for use in films, TV shows, and commercials, which drive additional income streams.
For more details about this, visit our topics on Music Creators’ Rights, Rights Transfer and Licensing, and Scope of Protection.
What’s the difference between major & independent record labels?
The main differences between a major and an independent record label are the company's size, resources, and .
Major Record Labels
As of writing, there are three major record companies, often referred to as the majors:
Universal Music Group
Sony Music Entertainment
Warner Music Group
The majors are large organizations that operate in over 70 countries, with global workforces that number in the thousands.
They have a number of record labels that operate under the umbrella of their parent groups. For example, Island, Def Jam, and EMI are under Universal Music Group; Columbia Records, RCA Records, and Epic Records are part of Sony Music Entertainment; and Atlantic, Parlophone, and Warner Records are part of Warner Music Group.
The parent groups also have music publishing arms, with the recording and publishing arms both under the same corporate umbrella but operating independently and separately.
A singer-songwriter can be Refers to a creator who has a record label or music publisher contract. to different companies for representations of their rights, for example, Publisher A for the publishing of musical works and Record Label B for the creation and distribution of sound recordings.
Independent Record Labels (Indies)
Record labels that operate without the financial backing of any of the other three major labels are considered independent record labels, commonly known as indies. They can range in size and often work with smaller distribution and publishing companies.
They typically work with other companies for their distribution and promotion of their sound recordings and artists. This can include partnerships with the major labels.
An independent record label operates on a more local or regional scale, but can also reach worldwide audiences, and sometimes specializes in niche genres or markets.
Independent record labels operate in most countries, and below are some examples from around the world:
Because - France
BMG – Global
Essence Music - Brazil
Honey Soundsystem – India
Maltine Records - Japan
Mavin Records - Africa
Mushroom Records – Australia
Nairobi Records - Kenya
PIAS - Global
Rimas - Latin America
Spoonfed Record – Sweden
Sub Pop - US
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Image credit: Jakob Johansson, Parapix