Editing Record label

{{Short description|Brand associated with music and music videos}}
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{{Use dmy dates|date=December 2023}}
{{Use British English|date=August 2024}}

<div style="float:right; text-align:center; padding:20px; margin:0 0 20px 20px; background-color:#F5F5F5;">
[[File:Universal Music Group logo.svg|180px|link=Universal Music Group]]

[[File:Sony Music Entertainment Logo 2023.svg|100px|link=Sony Music Entertainment]]

[[File:Warner Music Group logo (2021).svg|150px|link=Warner Music Group]]

"Big Three" music labels
</div>

A '''record label''' or '''record company''' is a [[brand]] or [[trademark]] of [[Sound recording and reproduction|music recordings]] and [[music video]]s, or the company that owns it. Sometimes, a record label is also a [[Music publisher|publishing]] company that manages such brands and trademarks, coordinates the production, [[manufacturing|manufacture]], [[distribution (marketing)|distribution]], marketing, promotion, and enforcement of [[copyright]] for sound recordings and music videos, while also conducting [[Artists and repertoire|talent scouting and development of new artists]], artist financing and maintaining [[Recording contract|contracts]] 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.<ref>{{cite web |title=label (n.) |url=https://www.etymonline.com/word/label |website=Online Etymological Dictionary |publisher=Douglas Harper |access-date=12 July 2021}}</ref>

Within the mainstream [[music industry]], 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]]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 record label|independent]]" ("indie"), or they may be part of a large [[multinational corporation|international media group]], or somewhere in between. The [[Association of Independent Music]] (AIM) defines a "major" as "a [[Multinational corporation|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}}, only three labels are "major labels": [[Universal Music Group]], [[Sony Music]], and [[Warner Music Group]]. In 2014, AIM estimated that the majors had a collective global market share of some 65–70%.<ref>{{cite web |date=1 February 2014 |title=Independent Music is now a growing force in the global market |url=http://www.musicindie.com/independent-music-now-growing-force-global-market/ |url-status=dead |archive-url=https://web.archive.org/web/20190223054625/http://www.musicindie.com/independent-music-now-growing-force-global-market/ |archive-date=23 February 2019 |access-date=20 March 2019 |website=Association of Independent Music}}</ref>

== Major labels ==

=== Present ===

{| class="wikitable sortable"
|-
! Major record label
! Year founded
! Headquarters
! Divisions
! Global market share<ref>{{cite web | url=https://www.statista.com/statistics/422926/record-companies-market-share-worldwide-physical-digital-revenues/ | title=Global record companies market share 2022 }}</ref>
|-
| [[Universal Music Group]] ({{EuronextAmsterdam|UMG|NL0015000IY2}})
| align="center" | {{start date and age|1934|9}}
| [[Hilversum]], [[North Holland]], Netherlands (corporate) <br> [[Santa Monica, California]], United States (operational)
| [[List of Universal Music Group labels]]
| 31.9%
|-
| [[Sony Music|Sony Music Entertainment]]
| align=center |{{Start date and age|1929|9|9}}
| [[New York City]], [[New York (state)|New York]], United States
| [[List of Sony Music labels]]
| 22.1%
|-
| [[Warner Music Group]] ({{NASDAQ|WMG}})
| align=center |{{Start date and age|1958|4|6}}
| [[New York City]], [[New York (state)|New York]], United States
| [[List of Warner Music Group labels]]
| 16%
|}

=== Past ===
{{Timeline of Major Record Labels}}

Record labels are often under the control of a corporate umbrella organization called a "music [[Corporate group|group]]". A music group is usually affiliated to an international [[conglomerate (company)|conglomerate]] "[[holding company]]", 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.

{{Anchor|Major labels 1988–1999 (Big Six)}}From 1929 to 1998, there were six major record labels, known as the Big Six:<ref>{{Cite web|title=The Rise And Fall Of Major Record Labels|url=https://www.arkatechbeatz.com/the-rise-and-fall-of-major-record-labels/|access-date=5 May 2021|website=www.arkatechbeatz.com|language=en-US|archive-date=9 May 2021|archive-url=https://web.archive.org/web/20210509075939/https://www.arkatechbeatz.com/the-rise-and-fall-of-major-record-labels/|url-status=dead}}</ref>

# [[Warner Music Group]]
# [[EMI]]
# [[Sony Music]] (known as CBS Records until January 1991)
# [[Bertelsmann Music Group|BMG]] (formed in 1985 as RCA/Ariola International)
# [[Universal Music Group]] (known as MCA Music until 1996)
# [[PolyGram]]

{{Anchor|Major labels 1999–2004 (Big Five)}}PolyGram was merged into Universal Music Group (UMG) in 1999, leaving the remaining record labels to be known as the Big Five.

{{Anchor|Major labels 2004–2012 (Big Four)}}In 2004, Sony and BMG agreed to a joint venture and merged their recorded music division to create the [[Sony BMG]] 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 remaining record labels—then known as the Big Four—controlled about 70% of the [[world music market]], and about 80% of the United States music market.<ref>{{cite web |url=http://www.copynot.org/Pages/The%20big%20four%20Record%20Companies.html |title=Copyright Law, Treaties and Advice |publisher=Copynot.org |access-date=14 November 2013 |archive-date=19 June 2013 |archive-url=https://web.archive.org/web/20130619074235/http://www.copynot.org/Pages/The%20big%20four%20Record%20Companies.html |url-status=dead }}</ref><ref>{{cite web|first = Steve|last = Jobs|title = Thoughts on Music|date = 6 February 2007|website = Apple|url = https://www.apple.com/fr/hotnews/thoughtsonmusic/ |url-status =dead|archive-url=https://web.archive.org/web/20090103083842/https://www.apple.com/fr/hotnews/thoughtsonmusic/ |archive-date=3 January 2009 }}</ref>

{{Anchor|Big Three|Big 3|big three|3|Major labels since 2012|Major labels after collapse of EMI|Major labels since 2012 (Big Three)}}In 2012, the major divisions of [[EMI]] were sold off separately by owner [[Citigroup]]: 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]] and [[Virgin Classics]] labels were absorbed into [[Warner Music Group|Warner Music]] Group (WMG) in July 2013.<ref>Joshua R. Wueller, [https://ssrn.com/abstract=2293412 ''Mergers of Majors: Applying the Failing Firm Doctrine in the Recorded Music Industry''], 7 Brook. J. Corp. Fin. & Com. L. 589, 601–04 (2013).</ref> This left the so-called Big Three labels.

{{Anchor|Big Three|Big 3|big three|3|Major labels since 2012|Major labels after collapse of EMI|Major labels since 2012 (Big Three)}}In 2020 and 2021, both WMG and UMG had their [[Initial public offering|IPO]] with WMG starting trading at [[Nasdaq]] and UMG starting trading at [[Euronext Amsterdam]] and leaving only Sony Music as wholly-owned subsidiary of an international conglomerate ([[Sony Entertainment]] which in turn is owned by [[Sony|Sony Group Corporation]]).

== Independent ==
{{Main|Independent record label}}

Record labels and music publishers that are not under the control of the big three are generally considered to be ''independent'' (''[[indie (music)|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 sales power, indie labels typically offer larger artist royalty with a 50% profit-share agreement, aka 50–50 deal, not uncommon.<ref>{{cite web|last=McDonald|first=Heather|date=20 November 2019|title=5 Lessons Big Record Labels Learned From Independents|url=https://www.thebalancecareers.com/top-lessons-big-labels-learned-from-independents-2460789|website=[[The Balance (website)|The Balance]]}}</ref> 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]], [[Aimee Mann]], [[Prince (musician)|Prince]], [[Public Enemy (band)|Public Enemy]], 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]]'s [[Reprise Records]], which has been owned by [[Warner Music Group]] for some time now, and musician [[Herb Alpert]]'s [[A&M Records]], now owned by Universal Music Group). Similarly, [[Madonna (entertainer)|Madonna]]'s Maverick Records (started by Madonna with her manager and another partner) was to come under control of Warner Music when Madonna [[divest]]ed 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 ==
{{See also|imprint (trade name)}}
A label used as a trademark or brand and not a company is called an [[Imprint (trade name)|imprint]], a term used for a similar concept in [[publishing]]. An imprint is often marketed as a "unit" or "division" of the parent label, though in most cases, they operate as [[pseudonym]] for it and do not exist as a [[Division (business)|distinct business operation]] or separate business structure (although [[trademark]]s are sometimes registered). 

A record label may give a musical act an imprint as part of their branding, while other imprints serve to house other activities, such as side ventures of that label.<ref>{{cite web | url=https://www.musicbusinessworldwide.com/more-and-more-corporate-brands-are-starting-their-own-record-labels-again-will-they-last/ | title=More and more corporate brands are starting their own record labels (Again). Will they last? | date=9 December 2019 }}</ref>

== 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]] 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 [[Mergers and acquisitions|merger]]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.<ref>{{Cite news |last=Rosen |first=Jody |date=11 June 2019 |title=The Day the Music Burned |work=The New York Times |url=https://www.nytimes.com/2019/06/11/magazine/universal-fire-master-recordings.html |access-date=22 November 2022}}</ref> Island remained registered as corporations in both the United States and [[United Kingdom|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 ==
{{Main|Vanity label}}

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 (band)|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]] of [[Nine Inch Nails]]; and Morning Records, owned by the [[Cooper Temple Clause]], who were releasing EPs for years before the company was bought by [[RCA]].

== Relationship with artists ==

If an artist and a label want to work together, whether an artist has contacted a label directly, usually by sending their team a demo,<ref>{{cite web |last1=Leighton |first1=Mackenzie |title=How to send a demo to a record label? |url=https://blog.groover.co/en/tips/send-a-demo-to-record-labels/ |website=Groover Blog |access-date=14 November 2023}}</ref> or the [[Artists and repertoire|Artists & Repertoire]] team of the label has scouted the artist and reached out directly, they will usually enter in to a contractual relationship.

A label typically enters into an exclusive [[recording contract]] with an artist to market the artist's recordings in return for [[Music royalties|royalties]] 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 (musician)|Prince]]'s much-publicized 1994–1996 feud with [[Warner Bros. Records]] provides a strong counterexample,<ref>{{cite magazine|last1=Newman|first1=Melinda|date=28 April 2016|title=Inside Prince's Career-Long Battle to Master His Artistic Destiny|url=https://www.billboard.com/articles/news/cover-story/7348551/prince-battle-to-control-career-artist-rights|access-date=3 April 2017|magazine=[[Billboard (magazine)|Billboard]]}}</ref> as does [[Roger McGuinn]]'s claim, made in July 2000 before a US Senate committee, that [[the Byrds]] never received any of the royalties they had been promised for their biggest hits, "[[Mr.&nbsp;Tambourine Man]]" and "[[Turn! Turn! Turn! (to Everything There Is a Season)|Turn! Turn!, Turn!]]".<ref>{{cite news|date=11 July 2000|title=CNN Transcript – Special Event: Lars Ulrich, Roger McGuinn Testify Before Senate Judiciary Committee on Downloading Music on the Internet|website=[[CNN]]|url=http://transcripts.cnn.com/TRANSCRIPTS/0007/11/se.01.html|access-date=29 April 2016|archive-date=4 March 2016|archive-url=https://web.archive.org/web/20160304000925/http://transcripts.cnn.com/TRANSCRIPTS/0007/11/se.01.html|url-status=dead}}</ref>

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]]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.<ref>{{Cite web |last=Boone |first=Brian |date=13 January 2020 |title=Musicians That Were Forced To Change Their Album Covers |url=https://www.grunge.com/183286/musicians-that-were-forced-to-change-their-album-covers/|access-date=3 September 2021 |website=Grunge.com |language=en-US}}</ref> Other artists have had their music prevented from release, or shelved.<ref name=":0">{{Cite web |last=Zafar |first=Aylin |date=13 May 2013 |title=What It's Like When A Label Won't Release Your Album |url=https://www.buzzfeed.com/azafar/what-happens-when-your-favorite-artist-is-legally-unable-to|access-date=3 September 2021 |website=[[BuzzFeed]] |language=en}}</ref> 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.<ref>{{Cite web |last=Jones |first=Rhian |date=11 August 2021 |title='I had no confidence, no money': the pop stars kept in limbo by major labels |url=http://www.theguardian.com/music/2021/aug/11/i-had-no-confidence-no-money-the-pop-stars-kept-in-limbo-by-major-labels|access-date=3 September 2021 |website=[[The Guardian]] |language=en}}</ref><ref>{{Cite web |date=9 January 2017 |title=Tinashe's Studio Session Tale Shows How Ruthless The Music Business Is |url=https://uproxx.com/music/tinashe-rca-record-label/|first=Delenda|last=Joseph|access-date=3 September 2021 |website=[[UPROXX]] |language=en-US}}</ref> Reasons for shelving can include the label deciding to focus its resources on other artists on its roster,<ref name=":0" /> 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.<ref name=":0" /><ref name=":1">{{Cite web |date=7 July 2021 |title=What's it like for musicians whose labels won't release their music? |url=https://www.dazeddigital.com/music/article/53445/1/whats-it-like-for-musicians-whose-labels-wont-release-their-music-raye|first=Felicity|last=Martin|access-date=3 September 2021 |website=[[Dazed (magazine)|Dazed]] |language=en}}</ref> 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.<ref name=":1" /><ref name=":2">{{Cite web |date=2 November 2015 |title=JoJo Spent Nearly a Decade Fighting Her Label and Won. Here's What She Learned, in Her Own Words. |url=https://www.vulture.com/2015/10/jojo-fighting-the-major-label-man-in-her-own-words.html|last1=JoJo|last2=Lockett|first2=Dee|access-date=3 September 2021 |website=Vulture |language=en-us}}</ref> Artists who have had disputes with their labels over ownership and control of their music have included [[Taylor Swift]],<ref>{{Cite web |last=Halperin |first=Shirley |date=16 November 2020 |title=Scooter Braun Sells Taylor Swift's Big Machine Masters for Big Payday |url=https://variety.com/2020/music/news/scooter-braun-sells-taylor-swift-big-machine-masters-1234832080/|access-date=3 September 2021 |website=[[Variety (magazine)|Variety]] |language=en-US}}</ref> [[Tinashe]],<ref>{{Cite web |last=Furdyk |first=Brent |date=19 July 2019 |title=Tinashe Reveals She 'Fired' Her Team, Alleges Former Record Label 'Sabotaged' Her |url=https://etcanada.com/news/476226/tinashe-reveals-she-fired-her-team-alleges-former-record-label-sabotaged-her/ |access-date=3 September 2021 |website=ET Canada |language=en-US |archive-date=3 September 2021 |archive-url=https://web.archive.org/web/20210903061028/https://etcanada.com/news/476226/tinashe-reveals-she-fired-her-team-alleges-former-record-label-sabotaged-her/ |url-status=dead }}</ref> [[Megan Thee Stallion]],<ref>{{Cite web |date=6 March 2020 |title=Why Is Megan Thee Stallion Suing Her Record Label? |url=https://pitchfork.com/thepitch/megan-thee-stallion-suing-record-label-suga/|first=Marc|last=Hogan|access-date=3 September 2021 |website=[[Pitchfork (website)|Pitchfork]] |language=en-US}}</ref> [[Kelly Clarkson]],<ref>{{Cite news |last=du Lac |first=J. Freedom |date=26 June 2007 |title='My December': Kelly Clarkson, Striking Out On Her Own |language=en-US |newspaper=[[Washington Post]] |url=http://www.washingtonpost.com/wp-dyn/content/article/2007/06/25/AR2007062501859.html |access-date=3 September 2021 |issn=0190-8286}}</ref> [[Thirty Seconds to Mars]],<ref>{{Cite magazine |last=Kreps |first=Daniel |date=18 August 2008 |title=Virgin/EMI Sue 30 Seconds to Mars for $30 Million, Leto Fights Back |url=https://www.rollingstone.com/music/music-news/virgin-emi-sue-30-seconds-to-mars-for-30-million-leto-fights-back-244059/ |url-status=dead |magazine=[[Rolling Stone]] |archive-url=https://web.archive.org/web/20180904225833/https://www.rollingstone.com/music/music-news/virgin-emi-sue-30-seconds-to-mars-for-30-million-leto-fights-back-244059/ |archive-date=4 September 2018}} Retrieved 3 September 2021.</ref> [[Clipse]],<ref>{{Cite news |last=Crosley |first=Hillary |date=29 October 2007 |title=The Clipse ends tumultuous tenure at Jive |language=en |work=[[Reuters]] |url=https://www.reuters.com/article/music-clipse-dc-idUSN2838536520071029 |access-date=3 September 2021}}</ref> [[Ciara]],<ref>{{Cite web |date=16 February 2011 |title=Ciara: 'I pray my label will release me' |url=http://www.theguardian.com/music/2011/feb/16/ciara-label-release  |access-date=3 September 2021 |website=[[The Guardian]] |language=en}}</ref> [[JoJo (singer)|JoJo]],<ref name=":2" /> [[Michelle Branch]],<ref>{{Cite web |date=23 March 2017 |title=After Years of Record-Label Limbo, Michelle Branch Can Tell You That She's Happy Now |url=https://www.pastemagazine.com/music/michelle-branch/after-years-of-record-label-strife-michelle-branch/  |access-date=3 September 2021 |website=[[Paste Magazine]] |language=en}}</ref> [[Kesha]],<ref>{{Cite web |last1=Lockett |first1=Dee |last2=Gordon |first2=Amanda |last3=Zhan |first3=Jennifer |date=23 April 2021 |title=The Complete History of Kesha's Fight Against Dr. Luke |url=https://www.vulture.com/article/timeline-keshas-legal-fight-against-dr-luke.html  |access-date=3 September 2021 |website=Vulture |language=en-us}}</ref> [[Kanye West]],<ref>{{Cite web |last=Jones |first=Jiggy |date=16 September 2020 |title=Kanye West Says Universal Music Group Refuses To Tell Him Cost of Masters |url=https://thesource.com/2020/09/16/kanye-west-says-universal-music-group-refuses-to-tell-him-cost-of-masters/  |access-date=3 September 2021 |website=[[The Source (magazine)|The Source]] |language=en-US}}</ref> [[Lupe Fiasco]],<ref>{{Cite web |last=Cowen |first=Trace William |date=11 February 2019 |title=Lupe Fiasco Blasts Atlantic and Lyor Cohen, Calls Music Biz 'Damn Near a Mob Cartel' |url=https://www.complex.com/music/2019/02/lupe-fiasco-atlantic-lyor-cohen-music-biz-cartel  |access-date=3 September 2021 |website=[[Complex (website)|Complex]] |language=en}}</ref> [[Paul McCartney]],<ref>{{Cite web |last=Hudson |first=John |date=18 May 2010 |title=Paul McCartney vs. EMI |url=https://www.theatlantic.com/culture/archive/2010/05/paul-mccartney-vs-emi/340857/  |access-date=3 September 2021 |website=[[The Atlantic]] |language=en}}</ref> and [[Johnny Cash]].<ref>{{Cite web |last=Park |first=Andrea |date=25 February 2016 |title=Musicians v. record labels: 14 famous feuds |url=https://www.cbsnews.com/pictures/musicians-v-record-labels-famous-feuds/  |access-date=3 September 2021 |website=[[CBS News]] |language=en-US}}</ref>

In the early days of the recording industry, recording labels were absolutely necessary for the success of any artist.<ref>{{Cite thesis |last=Bielas |first=Ilan |date=2013 |title=The Rise and Fall of Record Labels |type=BA thesis |publisher=Claremont McKenna College |url=https://scholarship.claremont.edu/cmc_theses/703 |id=Paper 703 |access-date=3 September 2021}}</ref>{{better source needed|date=March 2023}} 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 forever. [[Entertainment law]]yers are usually employed by artists to discuss contract terms.

Due to advancing technology such as the [[Internet]], the role of labels is rapidly changing, as artists are able to freely distribute their own material through [[Internet radio|online radio]], [[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]], 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.<ref>{{cite web|date=8 October 2007|title=Nine inch nails = independent|url=http://www.sputnikmusic.com/news.php?newsid=4504|access-date=29 April 2016|website=Sputnikmusic}}</ref> However, Nine Inch Nails later returned to working with a major label,<ref>{{cite web|date=19 August 2013|title=Trent Reznor on Nine Inch Nails' Columbia Signing: 'I'm Not a Major Label Apologist'|url=http://www.spin.com/2013/08/trent-reznor-nine-inch-nails-hesitation-marks-columbia-spin-september-2013-cover-story/|access-date=29 April 2016|website=[[Spin (magazine)|Spin]]}}</ref> admitting that they needed the international marketing and promotional reach that a major label can provide. [[Radiohead]] also cited similar motives with the end of their contract with [[EMI]] when their album ''[[In Rainbows]]'' was released as a "[[pay what you want]]" sales model as an online download, but they also returned to a label for a conventional release.<ref>{{cite web|date=31 October 2007|title=Radiohead sign 'conventional' record deal|url=https://www.nme.com/news/radiohead/32207|access-date=29 April 2016|website=[[NME]]}}</ref> Research shows that record labels still control most access to distribution.<ref>
{{cite journal|author1=Arditi|first=David|year=2014|title=iTunes: Breaking Barriers and Building Walls|url=https://rc.library.uta.edu/uta-ir/bitstream/10106/27052/1/iTunes_breaking%20barriers%20and%20building%20walls.pdf|journal=Popular Music & Society|volume=37|issue=4|pages=408–424|doi=10.1080/03007766.2013.810849|hdl-access=free|hdl=10106/27052|s2cid=191563044}}</ref>

== New label strategies ==

Computers and internet technology led to an increase in file sharing and [[Direct-to-Fan|direct-to-fan]] digital distribution, causing music sales to plummet in recent years.<ref>{{cite web|last=Covert|first=Adrian|date=25 April 2013|title=A decade of iTunes singles killed the music industry|url=https://money.cnn.com/2013/04/25/technology/itunes-music-decline/|access-date=29 April 2016|website=CNN Business}}</ref> 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,<ref>{{Cite web|last=Cole|first=Tom|date=24 November 2010|title=You Ask, We Answer: What Exactly Is A 360 Deal?|url=https://www.npr.org/sections/therecord/2010/11/24/131574836/you-ask-we-answer-what-exactly-is-a-360-deal|website=[[NPR]]|language=en}}</ref><ref>{{Cite web|date=15 April 2010|title=Behind the music: When artists are held hostage by labels|url=http://www.theguardian.com/music/musicblog/2010/apr/15/artists-held-hostage-labels|website=[[The Guardian]]|language=en}}</ref> where labels are given rights and percentages to artist's touring, merchandising, and [[Testimonial|endorsement]]s. 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]],<ref name=":3">{{Cite news|last=Leeds|first=Jeff|date=11 November 2007|title=The New Deal: Band as Brand|language=en-US|work=[[The New York Times]]|url=https://www.nytimes.com/2007/11/11/arts/music/11leed.html|issn=0362-4331}}</ref> [[Maino (rapper)|Maino]], and even [[Madonna (entertainer)|Madonna]]<ref>{{Cite web|last=Moreau|first=Jordan|date=8 August 2020|title=Madonna Is a Free Agent After Decade-Long Deal With Interscope Records|url=https://variety.com/2020/music/news/madonna-interscope-records-leaves-1234729735/|website=[[Variety (magazine)|Variety]]|language=en-US}}</ref><ref>{{Cite news|last=Adegoke|first=Yinka|date=11 October 2007|title=Madonna move shows music industry's 360-model|language=en|work=[[Reuters]]|url=https://www.reuters.com/article/us-madonna-livenation-idUSN1140445720071011}}</ref> have signed such types of deals.

A look at an actual 360 deal offered by [[Atlantic Records]] 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.<ref name=":3" />

=== Internet and digital labels ===
{{Main|Netlabel}}

With the Internet now being the dominant source for obtaining music, [[netlabel]]s 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]] 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.<ref>{{cite journal|last1=Suhr|first1=Cecilia|title=Understanding the Hegemonic Struggle between Mainstream Vs. Independent Forces: The Music Industry and Musicians in the Age of Social Media|journal=International Journal of Technology, Knowledge & Society|date=November 2011|volume=7|issue=6|pages=123–136|doi=10.18848/1832-3669/CGP/v07i06/56248}}</ref>

=== Open-source labels ===
{{Main|Open-source record label}}

The new century brought the phenomenon of ''open-source'' or ''open-content'' record labels. These are inspired by the [[free software]] and [[Open-source model|open source]] movements and the success of [[Linux]].

=== 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 [[Hickory Records|a dormant Sony-owned imprint]], rather than waiting for a deal with a proper label.<ref>{{Cite magazine|last=Butler|first=Susan|date=31 March 2007|title=Publisher = Label?|url=https://books.google.com/books?id=eRMEAAAAMBAJ&pg=PA22|magazine=[[Billboard (magazine)|Billboard]]|page=22}}</ref>

=== Crowdfunded labels ===
In 2002, [[ArtistShare]] was founded as the Internet's first record label where the releases were directly funded by the artist's fans.

== See also ==
{{Portal|Record production}}
* [[List of record labels]]
* [[List of largest music deals]]
* [[Streaming media]]
* [[White label record]]
* [[Major film studios]], with a "big five" (containing within them all of the three companies above)

== References ==
{{Reflist}}

== External links ==
{{Commons category|Record labels|position=left}}

{{Music industry}}

{{Authority control}}

[[Category:Record labels| ]]