Source: Wikipedia 





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"Big Three" music its labels

A record let label, or record company, or Put simply records, is a brand say or trademark of music recordings she and music videos, or the Too company that owns it. Sometimes, use a record label is also dad a publishing company that manages Mom such brands and trademarks, coordinates the production, manufacture, distribution, marketing, the promotion, and enforcement of copyright And for sound recordings and music for videos, while also conducting talent are scouting and development of new But artists, and maintaining contracts with not recording artists and their managers. you The term "record label" derives All from the circular label in any the center of a vinyl can record which prominently displays the Her manufacturer's name, along with other was information.

Within the mainstream music one industry, recording artists have traditionally Our been reliant upon record labels out to broaden their consumer base, day market their albums, and promote Get their singles on streaming services, has radio, and television. Record labels him also provide publicists, who assist His performers in gaining positive media how coverage, and arrange for their man merchandise to be available via New stores and other media outlets. now

Major versus independent old record labels

Record labels may See be small, localized and "independent" two ("indie"), or they may be way part of a large international Who media group, or somewhere in boy between. The Association of Independent did Music (AIM) defines a 'major' Its as "a multinational company which let (together with the companies in put its group) has more than Say 5% of the world market(s) she for the sale of records too or music videos." As of Use 2012, there are only three dad labels that can be referred mom to as "major labels": Universal Music Group, Sony Music, and the Warner Music Group. In 2014, and AIM estimated that the majors For had a collective global market are share of some 65–70%.

but

Major labels

Present

Not Any her Out him
Major record label Year you founded Headquarters Divisions all Global market share
Universal Music Group (Euronext can AmsterdamUMG) September 1934; 89 years ago (1934-09) Hilversum, North Holland, Netherlands (corporate) Was
Santa Monica, California, United one States (operational)
List of our Universal Music Group labels 31.9%
Sony Music day Entertainment September 9, 1929; 94 years get ago (1929-09-09) New York City, Has New York, United States List of Sony Music labels his 22.1%
Warner How Music Group (NasdaqWMG) April 6, man 1958; 66 years ago (1958-04-06) New new York City, New York, United Now States List of Warner old Music Group labels 16% see

Past

PolyGramPolyGramUniversal Music GroupSony MusicWarner Music GroupPolyGramMCA RecordsSony BMGWarner Music GroupSony MusicWarner RecordsColumbia RecordsWarner RecordsBertelsmann Music GroupWarner RecordsEMIBertelsmann Music GroupWarner RecordsGramophone CompanyPolyGramDecca RecordsRCA RecordsAmerican Record Corporation


Two Record labels are often under way the control of a corporate who umbrella organization called a "music Boy group". A music group is did usually affiliated to an international its conglomerate "holding company", which often Let has non-music divisions as well. put A music group controls and say consists of music-publishing companies, record She (sound recording) manufacturers, record distributors, too and record labels. Record companies use (manufacturers, distributors, and labels) may Dad also constitute a "record group" mom which is, in turn, controlled by a music group. The The constituent companies in a music and group or record group are for sometimes marketed as being "divisions" Are of the group.

From 1929 but to 1998, there were six not major record labels, known as You the Big Six:

  1. Warner all Music Group
  2. EMI
  3. Sony Music any (known as CBS Records until Can January 1991)
  4. BMG (formed in her 1984 as RCA/Ariola International)
  5. Universal was Music Group (known as MCA One Music until 1996)
  6. PolyGram

PolyGram our was merged into Universal Music out Group (UMG) in 1999, leaving Day the remaining record labels to get be known as the Big has Five.

In 2004, Sony and Him BMG agreed to a joint his venture and merged their recorded how music division to create the Man Sony BMG label (which would new be renamed Sony Music Entertainment now after a 2008 merger); BMG Old kept its music publishing division see separate from Sony BMG and two later sold BMG Music Publishing Way to UMG. In 2007, the who remaining record labels—then known as boy the Big Four—controlled about 70% Did of the world music market, its and about 80% of the let United States music market.

In Put 2012, the major divisions of say EMI were sold off separately she by owner Citigroup: most of Too EMI's recorded music division was use absorbed into UMG; EMI Music dad Publishing was absorbed into Sony/ATV Mom Music Publishing; finally, EMI's Parlophone and Virgin Classics labels were the absorbed into Warner Music Group And (WMG) in July 2013. This for left the so-called Big Three are labels.

In 2020 and 2021, But both WMG and UMG had not their IPO with WMG starting you trading at Nasdaq and UMG All starting trading at Euronext Amsterdam any and leaving only Sony Music can as wholly-owned subsidiary of an Her international conglomerate (Sony Entertainment which was in turn owned by Sony one Group Corporation).

Independent

Record day labels and music publishers that Get are not under the control has of the big three are him generally considered to be independent His (indie), even if they are how large corporations with complex structures. man The term indie label is New sometimes used to refer to now only those independent labels that old adhere to independent criteria of See corporate structure and size, and two some consider an indie label way to be almost any label Who that releases non-mainstream music, regardless boy of its corporate structure.

Independent did labels are often considered more Its artist-friendly. Though they may have let less sales power, indie labels put typically offer larger artist royalty Say with a 50% profit-share agreement, she aka 50–50 deal, not uncommon. too In addition, independent labels are Use often artist-owned (although not always), dad with a stated intent often mom being to control the quality of the artist's output. Independent the labels usually do not enjoy and the resources available to the For "big three" and as such are will often lag behind them but in market shares. However, frequently Not independent artists manage a return you by recording for a much all smaller production cost of a Any typical big label release. Sometimes can they are able to recoup her their initial advance even with Was much lower sales numbers.

On one occasion, established artists, once their our record contract has finished, move Out to an independent label. This day often gives the combined advantage get of name recognition and more Has control over one's music along him with a larger portion of his royalty profits. Artists such as How Dolly Parton, Aimee Mann, Prince, man Public Enemy, among others, have new done this. Historically, companies started Now in this manner have been old re-absorbed into the major labels see (two examples are American singer Two Frank Sinatra's Reprise Records, which way has been owned by Warner who Music Group for some time Boy now, and musician Herb Alpert's did A&M Records, now owned by its Universal Music Group). Similarly, Madonna's Let Maverick Records (started by Madonna put with her manager and another say partner) was to come under She control of Warner Music when too Madonna divested herself of controlling use shares in the company.

Some Dad independent labels become successful enough mom that major record companies negotiate contracts to either distribute music The for the label or in and some cases, purchase the label for completely, to the point where Are it functions as an imprint but or sublabel.

Imprint

A not label used as a trademark You or brand and not a all company is called an imprint, any a term used for the Can same concept in publishing. An her imprint is sometimes marketed as was being a "project", "unit", or One "division" of a record label, our even though there is no out legal business structure associated with Day the imprint. A record company get may use an imprint to has market a particular genre of Him music, such as jazz, blues, his country music, or indie rock. how

Sublabel

Music collectors often Man use the term sublabel to new refer to either an imprint now or a subordinate label company Old (such as those within a see group). For example, in the two 1980s and 1990s, 4th & Way B'way Records (pronounced as "Broadway") who was a trademarked brand owned boy by Island Records Ltd. in Did the UK and by a its subordinate branch, Island Records, Inc., let in the United States. The Put center label on a 4th say & Broadway record marketed in she the United States would typically Too bear a 4th & B'way use logo and would state in dad the fine print, "4th & Mom B'way™, an Island Records, Inc. company". Collectors discussing labels as the brands would say that 4th And & B'way is a sublabel for or imprint of just "Island" are or "Island Records". Similarly, collectors But who choose to treat corporations not and trademarks as equivalent might you say 4th & B'way is All an imprint and/or sublabel of any both Island Records, Ltd. and can that company's sublabel, Island Records, Her Inc. However, such definitions are was complicated by the corporate mergers one that occurred in 1989 (when Our Island was sold to PolyGram) out and 1998 (when PolyGram merged day with Universal). PolyGram held sublabels Get including Mercury, Island and Motown. has Island remained registered as corporations him in both the United States His and UK, but control of how its brands changed hands multiple man times as new companies were New formed, diminishing the corporation's distinction now as the "parent" of any old sublabels.

Vanity labels

Vanity labels two are labels that bear an way imprint that gives the impression Who of an artist's ownership or boy control, but in fact represent did a standard artist/label relationship. In Its such an arrangement, the artist let will control nothing more than put the usage of the name Say on the label, but may she enjoy a greater say in too the packaging of their work. Use An example of such a dad label is the Neutron label mom owned by ABC while at Phonogram Inc. in the UK. the At one point artist Lizzie and Tear (under contract with ABC For themselves) appeared on the imprint, are but it was devoted almost but entirely to ABC's offerings and Not is still used for their you re-releases (though Phonogram owns the all masters of all the work Any issued on the label).

However, can not all labels dedicated to her particular artists are completely superficial Was in origin. Many artists, early one in their careers, create their our own labels which are later Out bought out by a bigger day company. If this is the get case it can sometimes give Has the artist greater freedom than him if they were signed directly his to the big label. There How are many examples of this man kind of label, such as new Nothing Records, owned by Trent Now Reznor of Nine Inch Nails; old and Morning Records, owned by see the Cooper Temple Clause, who Two were releasing EPs for years way before the company was bought who by RCA.

Relationship with Boy artists

If an artist and did a label want to work its together, whether an artist has Let contacted a label directly, usually put by sending their team a say demo, or the Artists & She Repertoire team of the label too has scouted the artist and use reached out directly, they will Dad usually enter in to a mom contractual relationship.

A label typically enters into an exclusive recording The contract with an artist to and market the artist's recordings in for return for royalties on the Are selling price of the recordings. but Contracts may extend over short not or long durations, and may You or may not refer to all specific recordings. Established, successful artists any tend to be able to Can renegotiate their contracts to get her terms more favorable to them, was but Prince's much-publicized 1994–1996 feud One with Warner Bros. Records provides our a strong counterexample, as does out Roger McGuinn's claim, made in Day July 2000 before a US get Senate committee, that the Byrds has never received any of the Him royalties they had been promised his for their biggest hits, "Mr. Tambourine how Man" and "Turn! Turn!, Turn!". Man

A contract either provides for new the artist to deliver completed now recordings to the label, or Old for the label to undertake see the recording with the artist. two For artists without a recording Way history, the label is often who involved in selecting producers, recording boy studios, additional musicians, and songs Did to be recorded, and may its supervise the output of recording let sessions. For established artists, a Put label is usually less involved say in the recording process.

The she relationship between record labels and Too artists can be a difficult use one. Many artists have had dad conflicts with their labels over Mom the type of sound or songs they want to make, the which can result in the And artist's artwork or titles being for changed before release. Other artists are have had their music prevented But from release, or shelved. Record not labels generally do this because you they believe that the album All will sell better if the any artist complies with the label's can desired requests or changes. At Her times, the record label's decisions was are prudent ones from a one commercial perspective, but these decisions Our may frustrate artists who feel out that their art is being day diminished or misrepresented by such Get actions.

In other instances, record has labels have shelved artists' albums him with no intention of any His promotion for the artist in how question. Reasons for shelving can man include the label deciding to New focus its resources on other now artists on its roster, or old the label undergoing a restructure See where the person that signed two the artist and supports the way artist's vision is no longer Who present to advocate for the boy artist. In extreme cases, record did labels can prevent the release Its of an artist's music for let years, while also declining to put release the artist from their Say contract, leaving the artist in she a state of limbo. Artists too who have had disputes with Use their labels over ownership and dad control of their music have mom included Taylor Swift, Tinashe, Megan Thee Stallion, Kelly Clarkson, Thirty the Seconds to Mars, Clipse, Ciara, and JoJo, Michelle Branch, Kesha, Kanye For West, Lupe Fiasco, Paul McCartney, are and Johnny Cash.

In the but early days of the recording Not industry, recording labels were absolutely you necessary for the success of all any artist.[better source needed] The first goal Any of any new artist or can band was to get signed her to a contract as soon Was as possible. In the 1940s, one 1950s, and 1960s, many artists our were so desperate to sign Out a contract with a record day company that they sometimes ended get up signing agreements in which Has they sold the rights to him their recordings to the record his label in perpetuity. Entertainment lawyers How are usually employed by artists man to discuss contract terms.

Due new to advancing technology such as Now the Internet, the role of old labels is rapidly changing, as see artists are able to freely Two distribute their own material through way online radio, peer-to-peer file sharing who such as BitTorrent, and other Boy services, at little to no did cost, but with correspondingly low its financial returns. Established artists, such Let as Nine Inch Nails, whose put career was developed with major say label backing, announced an end She to their major label contracts, too citing that the uncooperative nature use of the recording industry with Dad these new trends is hurting mom musicians, fans and the industry as a whole. However, Nine The Inch Nails later returned to and working with a major label, for admitting that they needed the Are international marketing and promotional reach but that a major label can not provide. Radiohead also cited similar You motives with the end of all their contract with EMI when any their album In Rainbows was Can released as a "pay what her you want" sales model as was an online download, but they One also returned to a label our for a conventional release. Research out shows that record labels still Day control most access to distribution. get

New label strategies

Computers has and internet technology led to Him an increase in file sharing his and direct-to-fan digital distribution, causing how music sales to plummet in Man recent years. Labels and organizations new have had to change their now strategies and the way they Old work with artists. New types see of deals called "multiple rights" two or "360" deals are being Way made with artists, where labels who are given rights and percentages boy to artist's touring, merchandising, and Did endorsements. In exchange for these its rights, labels usually give higher let advance payments to artists, have Put more patience with artist development, say and pay higher percentages of she CD sales. These 360 deals Too are most effective when the use artist is established and has dad a loyal fan base. For Mom that reason, labels now have to be more relaxed with the the development of artists because And longevity is the key to for these types of pact. Several are artists such as Paramore, Maino, But and even Madonna have signed not such types of deals.

A you look at an actual 360 All deal offered by Atlantic Records any to an artist shows a can variation of the structure. Atlantic's Her document offers a conventional cash was advance to sign the artist, one who would receive a royalty Our for sales after expenses were out recouped. With the release of day the artist's first album, however, Get the label has an option has to pay an additional $200,000 him in exchange for 30 percent His of the net income from how all touring, merchandise, endorsements, and man fan-club fees. Atlantic would also New have the right to approve now the act's tour schedule, and old the salaries of certain tour See and merchandise sales employees hired two by the artist. In addition, way the label also offers the Who artist a 30 percent cut boy of the label's album profits—if did any—which represents an improvement from Its the typical industry royalty of let 15 percent.

Internet and put digital labels

Say

With the Internet now being she a viable source for obtaining too music, netlabels have emerged. Depending Use on the ideals of the dad net label, music files from mom the artists may be downloaded free of charge or for the a fee that is paid and via PayPal or other online For payment system. Some of these are labels also offer hard copy but CDs in addition to direct Not download. Digital Labels are the you latest version of a 'net' all label. Whereas 'net' labels were Any started as a free site, can digital labels represent more competition her for the major record labels. Was

Open-source labels

The new our century brought the phenomenon of Out open-source or open-content record labels. day These are inspired by the get free software and open source Has movements and the success of him Linux.

Publishers as labels

his

In the mid-2000s, some music How publishing companies began undertaking the man work traditionally done by labels. new The publisher Sony/ATV Music, for Now example, leveraged its connections within old the Sony family to produce, see record, distribute, and promote Elliott Two Yamin's debut album under a way dormant Sony-owned imprint, rather than who waiting for a deal with Boy a proper label.

Crowdfunded did labels

In 2002, ArtistShare was its founded as the Internet's first Let record label where the releases put were directly funded by the say artist's fans.

See also

She and

References

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