Record label

A record label is a music company.

It helps singers find fans. The label puts songs on the radio. They also put music on the internet.

Some labels are very large. These are called major labels. There are three big ones.

Other labels are small. People call these indie labels. They help new artists make music. This is how songs reach your ears.

A record label is a company that manages music. The name comes from the paper circle on a vinyl record. This circle shows the name of the maker.

Labels do many jobs to help singers. They find new talent. They also help make, sell, and promote music. This helps artists reach more fans on the radio or the internet. Some labels even help with merchandise, like shirts or hats.

There are two main types of labels. Major labels are very large companies. There are three big ones: Sony Music Group, Universal Music Group, and Warner Music Group.

Other companies are called indie labels. These are independent labels. They are often smaller and more local. Many artists think indie labels are more artist-friendly. These labels might share more of the money with the singer.

Artists and labels work together through a contract. This is a legal agreement. The label helps sell the music. In return, the label gets royalties. Royalties are payments made from the money earned by the music.

A record label is a brand or a company that manages music. The name comes from the paper circle in the middle of a vinyl record. This circle shows the maker's name and other facts.

Labels do many important jobs for musicians. They look for new talent through a process called talent scouting. They also help with making, selling, and promoting music. This helps singers reach more fans on the radio or streaming services. Some labels even help sell things like shirts or hats to fans.

Labels work in many different ways to help an artist succeed. First, they might find a singer and sign them to a contract. This is a legal agreement between the artist and the label. The label helps pay for things like recording studios and producers. In return, the label gets royalties. Royalties are payments made from the money earned by selling the music. Some labels also provide publicists to help singers get good news coverage. This helps the artist become well known to the public.

There are two main types of labels in the music world. Major labels are huge, international companies. There are only three major labels left today. These are Sony Music Group, Universal Music Group, and Warner Music Group.

In 2014, these three majors held about 65% to 70% of the global market. Other companies are called independent labels, or "indie" labels. These are often smaller and more local. Many artists feel that indie labels are more artist-friendly.

History shows how the music business has changed over time. From 1929 to 1998, there were six major labels known as the Big Six. These included names like EMI and PolyGram. Over many years, these companies merged or were sold. For example, PolyGram merged into Universal Music Group in 1999. In 2012, the big company EMI was split up. Most of its parts went to the Big Three.

This left the industry with the three giants we see now.

Understanding labels helps you see how your favorite songs reach you. When you hear a song on the radio, a label likely helped it get there. Even famous artists like Prince or Dolly Parton have worked with independent labels. Some artists start their own labels to have more control. This can give them more freedom over their music. Whether a label is huge or small, it acts as a bridge. It connects the person making the music to the person listening to it.

A record label is a brand or a trademark used for music recordings and music videos. It can also refer to the company that owns these brands. The term itself comes from the circular paper label found in the center of a vinyl record. This physical label displays the manufacturer's name and other important information. In the modern music industry, labels act as essential bridges for artists. They help musicians expand their audience and market their albums to the world.

Record labels manage a complex series of business processes to support music. They often act as publishing companies that coordinate the entire lifecycle of a song. This includes the production, manufacture, and distribution of music. Labels also handle marketing and the promotion of singles on radio, television, and streaming services. To find new talent, they engage in talent scouting and artist development. Once an artist is found, the label manages artist financing and maintains legal contracts. They may also provide publicists to ensure performers receive positive media coverage. They even arrange for artist merchandise to be sold in various stores.

Labels are generally categorized into two main groups: major labels and independent labels. The Association of Independent Music (AIM) defines a "major" as a multinational company. To qualify, a company or its group must hold more than 5% of the global market for music sales. Currently, only three companies hold this status: Sony Music Group, Universal Music Group, and Warner Music Group.

These three giants hold massive influence. In 2014, AIM estimated that the majors held a collective global market share of 65% to 70%. In contrast, independent, or "indie," labels are often smaller and more localized. While they have less sales power, indie labels are frequently considered more artist-friendly. They often offer larger royalties, sometimes using a 50–50 profit-share agreement.

Major labels often operate under a larger corporate structure known as a music group. A music group is typically part of an international conglomerate or holding company. These large organizations may even own divisions that have nothing to do with music. A music group controls several constituent parts, including music-publishing companies and record distributors. These smaller parts are often referred to as "divisions" of the larger group. Sometimes, the manufacturers and distributors together form what is called a "record group." This creates a complex web of ownership that spans the entire globe.

The landscape of major labels has changed significantly over the last century. From 1929 to 1998, the industry was dominated by the "Big Six." These six major labels were Warner Music Group, EMI, Sony Music, BMG, Universal Music Group, and PolyGram. Over time, mergers and sales reduced this number. PolyGram merged into Universal Music Group in 1999, creating the "Big Five." In 2004, Sony and BMG formed a joint venture known as Sony BMG. Later, in 2012, the major divisions of EMI were sold off by Citigroup. Most of EMI was absorbed by UMG, while other parts went to Sony and Warner.

This series of shifts resulted in the "Big Three" we see today.

Labels can also exist as imprints or sublabels rather than full companies. An imprint is a brand or trademark used by a label. It is often marketed as a unit or division of a parent label. Many imprints act as a pseudonym for the larger business. Some labels even provide an imprint to a musical act as part of their specific branding. A sublabel is a similar concept that music collectors often use. For example, 4th & B'way Records was a trademarked brand owned by Island Records. While an imprint might look like a separate company, it often lacks a distinct business structure. Some labels are even "vanity labels," which give the impression of artist ownership while remaining standard contracts.

The relationship between an artist and a label is defined by a legal contract. This is usually an exclusive recording contract where the label markets the music in exchange for royalties. Royalties are payments made to the artist from the selling price of the recordings. For new artists, the label might help select producers, studios, and even songs. For established artists, the label usually stays out of the creative recording process. However, this relationship can sometimes become difficult. Artists may have conflicts with labels regarding their musical sound or artwork. Some artists, like Prince, have famously feuded with their labels over these very issues.