RECORD LABELS AND THE BUSINESS OF MUSIC
Music is to be enjoyed, to be relished and savoured, but that is not all there is to music. Music has to earn a living.
Music means different things to different people especially when their source of livelihood is from music.
Either from creating music, making it viable, distribution or making sure it has a market that can continue to spin money.
The difference between a pro artiste and an upcoming artist, might not be the Stage but the earning power.
But before you can earn ,you must do the right things or better still be in bed with the right label.
Record labels have been the backbone of the Music Industry and are the reason music is a lucrative business for artists .
For artists within the mainstream, they are dependent on these record labels to help them broaden their fan base, market their works and get promoted both on traditional channels like the radio and TV or by new channels like streaming apps.
This has been the traditional path for most artists but it is the ‘rebel season’ and some artist are finding a different way to appeal to their fans and still cut cost by uploading videos online.
This has changed the manner of business In the Industry and how the major labels operate.
There are 3 major record labels in the Music Industry are (Universal Music Group, Sony Music Entertainment, and Warner Music Group). But these are not the only labels in the Music Industry. There are sub labels who are under the major labels but transact under a different label name, some record labels known as ‘indie record labels’ are independent labels which are not under any of the major labels.
They are smaller labels and the big advantage which they have is the establishment of a good rapport with their artists
The record labels might be investing in the profitable of the artist but they are the biggest gainers in a business run by them.
Big labels have introduced newer contracts known as the “360 deals” or the multiple pacts, these deals have become very important especially in a period when album sales have plummeted and increased advancement in technology and the internet has made sharing and distribution quite easier.
The multiple pacts deals allow the record labels rights anda certain percentage to the artist touring, merchandise and endorsement. In exchange for these rights the labels owe it to the artist to give an higher advance fee, allow for more time for artist development and pay a higher percentage of the CD sales to the artist.
These deals are quite profitable only if the artist has a large fan base or is quite marketable.
The internet growth has allowed for the option of digital labels to seem more feasible than in the past .
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.
Digital labels are a competition for the main stream record labels.
And they would become a bigger threat as long as the net continues to grow.