Record Labels

Structure and breakdown

Key Activities of a Record Label

Talent development

Artist product marketing

Handling the legal aspects of producing music

Providing service to an artist

Sales and distribution

Marketing and promotions

Providing service to the distributors and retailers

Label types

The Majors: big distribution and dominant market share

The independent: these lack major distribution but they can be large or small ‘major minors’

Sub labels and imprints: these are separate companies or divisions distributed or owned by the major labels

Specialty labels: these focus on non main stream distribution. For example, classical or gospel. They also use non traditional distribution.

The Major Labels

Examples:

Universal Music Group -Which is a subsidiary of French global telecom/ entertainment.

Sony Music Entertainment. This is a American based company which is related to Japanese electronics.

Warner Music Group – Which is a US based and publically traded

The major labels control approximately 70% of the music market and 80-90% of the US music market.

Major music company corporate structure

Corporate conglomerate

(Corporation that has a number of subordinate

companies or divisions)

Music Group

Record labelsMusic

publishing company

Distribution

Media – TV, Telecom

Gas, water and other non

music activities

Major Label Artists

Universal Sony

Warner Bros

Advantages of major labels

Well financed – so can afford better production, distribution, marketing and manufacturing

They can offer artists ability, prestige and top production resources.

BUT…

Until the 360 deals were introduced labels were unable to gain any of the money that their artist made outside of their music. For example, fragrance, ringtones, concert revenues, merchandise sales.

The Independent Labels

Examples:

No Limit Records

Aftermath Records

Priority Records

Side One Dummy Records

Fiction Records

Way Out West

Advantages Of Independent Labels

They're more creative – They can find more raw talent, use creative development, marketing and financing tactics. They can also build better brand loyalty amongst fans.

They can build better regional connections through publicity and sales

They are not restricted by long corporate approval processes and can understand artists and trends faster.

Independent Label Artists

Way Out West Close Harbor Records

Jalapeno Records