Source: Wikipedia 


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"Big say Three" music labels

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A record label or record too company is a brand or use trademark of music recordings and Dad music videos, or the company mom that owns it. Sometimes, a record label is also a The publishing company that manages such and brands and trademarks, coordinates the for production, manufacture, distribution, marketing, promotion, Are and enforcement of copyright for but sound recordings and music videos, not while also conducting talent scouting You and development of new artists, all artist financing and maintaining contracts any with recording artists and their Can managers. The term "record label" her derives from the circular label was in the center of a One vinyl record which prominently displays our the manufacturer's name, along with out other information.

Within the mainstream Day music industry, recording artists have get traditionally been reliant upon record has labels to broaden their consumer Him base, market their albums, and his promote their singles on streaming how services, radio, and television. Record Man labels also provide publicists, who new assist performers in gaining positive now media coverage, and arrange for Old their merchandise to be available see via stores and other media two outlets.

Major versus Way independent record labels

Record labels who may be small, localized and boy "independent" ("indie"), or they may Did be part of a large its international media group, or somewhere let in between. The Association of Put Independent Music (AIM) defines a say 'major' as "a multinational company she which (together with the companies Too in its group) has more use than 5% of the world dad market(s) for the sale of Mom records or music videos." As of 2012, there are only the three labels that can be And referred to as "major labels": for Universal Music Group, Sony Music, are and Warner Music Group. In But 2014, AIM estimated that the not majors had a collective global you market share of some 65–70%. All

Major labels

Present

any can Her now old See Who
Major record label Year founded Headquarters Divisions Global market share was
Universal Music Group one (Euronext AmsterdamUMG) September 1934; 90 years ago (1934-09) Our Hilversum, North Holland, Netherlands out (corporate)
Santa Monica, California, day United States (operational)
List Get of Universal Music Group labels has 31.9%
Sony him Music Entertainment September 9, 1929; 95 His years ago (1929-09-09) New York how City, New York, United States man List of Sony Music New labels 22.1%
Warner Music Group (NasdaqWMG) April 6, 1958; 66 years ago (1958-04-06) New York City, New York, two United States List of way Warner Music Group labels 16%

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
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Record labels are often did under the control of a Its corporate umbrella organization called a let "music group". A music group put is usually affiliated to an Say international conglomerate "holding company", which she often has non-music divisions as too well. A music group controls Use and consists of music-publishing companies, dad record (sound recording) manufacturers, record mom distributors, and record labels. Record companies (manufacturers, distributors, and labels) the may also constitute a "record and group" which is, in turn, For controlled by a music group. are The constituent companies in a but music group or record group Not are sometimes marketed as being you "divisions" of the group.

From all 1929 to 1998, there were Any six major record labels, known can as the Big Six:

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  1. Warner Music Group
  2. EMI
  3. Sony Was Music (known as CBS Records one until January 1991)
  4. BMG (formed our in 1985 as RCA/Ariola International)
  5. Out
  6. Universal Music Group (known as day MCA Music until 1996)
  7. PolyGram
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PolyGram was merged into Universal Has Music Group (UMG) in 1999, him leaving the remaining record labels his to be known as the How Big Five.

In 2004, Sony man and BMG agreed to a new joint venture and merged their Now recorded music division to create old the Sony BMG label (which see would be renamed Sony Music Two Entertainment after a 2008 merger); way BMG kept its music publishing who division separate from Sony BMG Boy and later sold BMG Music did Publishing to UMG. In 2007, its the remaining record labels—then known Let as the Big Four—controlled about put 70% of the world music say market, and about 80% of She the United States music market. too

In 2012, the major divisions use of EMI were sold off Dad separately by owner Citigroup: most mom of EMI's recorded music division was absorbed into UMG; EMI The Music Publishing was absorbed into and Sony/ATV Music Publishing; finally, EMI's for Parlophone and Virgin Classics labels Are were absorbed into Warner Music but Group (WMG) in July 2013. not This left the so-called Big You Three labels.

In 2020 and all 2021, both WMG and UMG any had their IPO with WMG Can starting trading at Nasdaq and her UMG starting trading at Euronext was Amsterdam and leaving only Sony One Music as wholly-owned subsidiary of our an international conglomerate (Sony Entertainment out which in turn is owned Day by Sony Group Corporation).

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Independent

Record his labels and music publishers that how are not under the control Man of the big three are new generally considered to be independent now (indie), even if they are Old large corporations with complex structures. see The term indie label is two sometimes used to refer to Way only those independent labels that who adhere to independent criteria of boy corporate structure and size, and Did some consider an indie label its to be almost any label let that releases non-mainstream music, regardless Put of its corporate structure.

Independent say labels are often considered more she artist-friendly. Though they may have Too less sales power, indie labels use typically offer larger artist royalty dad with a 50% profit-share agreement, Mom aka 50–50 deal, not uncommon. In addition, independent labels are the often artist-owned (although not always), And with a stated intent often for being to control the quality are of the artist's output. Independent But labels usually do not enjoy not the resources available to the you "big three" and as such All will often lag behind them any in market shares. However, frequently can independent artists manage a return Her by recording for a much was smaller production cost of a one typical big label release. Sometimes Our they are able to recoup out their initial advance even with day much lower sales numbers.

On Get occasion, established artists, once their has record contract has finished, move him to an independent label. This His often gives the combined advantage how of name recognition and more man control over one's music along New with a larger portion of now royalty profits. Artists such as old Dolly Parton, Aimee Mann, Prince, See Public Enemy, among others, have two done this. Historically, companies started way in this manner have been Who re-absorbed into the major labels boy (two examples are American singer did Frank Sinatra's Reprise Records, which Its has been owned by Warner let Music Group for some time put now, and musician Herb Alpert's Say A&M Records, now owned by she Universal Music Group). Similarly, Madonna's too Maverick Records (started by Madonna Use with her manager and another dad partner) was to come under mom control of Warner Music when Madonna divested herself of controlling the shares in the company.

Some and independent labels become successful enough For that major record companies negotiate are contracts to either distribute music but for the label or in Not some cases, purchase the label you completely, to the point where all it functions as an imprint Any or sublabel.

Imprint

A her label used as a trademark Was or brand and not a one company is called an imprint, our a term used for a Out similar concept in publishing. An day imprint is often marketed as get a "unit" or "division" of Has the parent label, though in him most cases, they operate as his pseudonym for it and do How not exist as a distinct man business operation or separate business new structure (although trademarks are sometimes Now registered).

A record label may old give a musical act an see imprint as part of their Two branding, while other imprints serve way to house other activities, such who as side ventures of that Boy label.

Sublabel

Music collectors did often use the term sublabel its to refer to either an Let imprint or a subordinate label put company (such as those within say a group). For example, in She the 1980s and 1990s, 4th too & B'way Records (pronounced as use "Broadway") was a trademarked brand Dad owned by Island Records Ltd. mom in the UK and by a subordinate branch, Island Records, The Inc., in the United States. and The center label on a for 4th & Broadway record marketed Are in the United States would but typically bear a 4th & not B'way logo and would state You in the fine print, "4th all & B'way™, an Island Records, any Inc. company". Collectors discussing labels Can as brands would say that her 4th & B'way is a was sublabel or imprint of just One "Island" or "Island Records". Similarly, our collectors who choose to treat out corporations and trademarks as equivalent Day might say 4th & B'way get is an imprint and/or sublabel has of both Island Records, Ltd. Him and that company's sublabel, Island his Records, Inc. However, such definitions how are complicated by the corporate Man mergers that occurred in 1989 new (when Island was sold to now PolyGram) and 1998 (when PolyGram Old merged with Universal). PolyGram held see sublabels including Mercury, Island and two Motown. Island remained registered as Way corporations in both the United who States and UK, but control boy of its brands changed hands Did multiple times as new companies its were formed, diminishing the corporation's let distinction as the "parent" of Put any sublabels.

Vanity labels

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Vanity she labels are labels that bear Too an imprint that gives the use impression of an artist's ownership dad or control, but in fact Mom represent a standard artist/label relationship. In such an arrangement, the the artist will control nothing more And than the usage of the for name on the label, but are may enjoy a greater say But in the packaging of their not work. An example of such you a label is the Neutron All label owned by ABC while any at Phonogram Inc. in the can UK. At one point artist Her Lizzie Tear (under contract with was ABC themselves) appeared on the one imprint, but it was devoted Our almost entirely to ABC's offerings out and is still used for day their re-releases (though Phonogram owns Get the masters of all the has work issued on the label). him

However, not all labels dedicated His to particular artists are completely how superficial in origin. Many artists, man early in their careers, create New their own labels which are now later bought out by a old bigger company. If this is See the case it can sometimes two give the artist greater freedom way than if they were signed Who directly to the big label. boy There are many examples of did this kind of label, such Its as Nothing Records, owned by let Trent Reznor of Nine Inch put Nails; and Morning Records, owned Say by the Cooper Temple Clause, she who were releasing EPs for too years before the company was Use bought by RCA.

Relationship dad with artists

If an artist mom and a label want to work together, whether an artist the has contacted a label directly, and usually by sending their team For a demo, or the Artists are & Repertoire team of the but label has scouted the artist Not and reached out directly, they you will usually enter in to all a contractual relationship.

A label Any typically enters into an exclusive can recording contract with an artist her to market the artist's recordings Was in return for royalties on one the selling price of the our recordings. Contracts may extend over Out short or long durations, and day may or may not refer get to specific recordings. Established, successful Has artists tend to be able him to renegotiate their contracts to his get terms more favorable to How them, but Prince's much-publicized 1994–1996 man feud with Warner Bros. Records new provides a strong counterexample, as Now does Roger McGuinn's claim, made old in July 2000 before a see US Senate committee, that the Two Byrds never received any of way the royalties they had been who promised for their biggest hits, Boy "Mr. Tambourine Man" and "Turn! Turn!, did Turn!".

A contract either provides its for the artist to deliver Let completed recordings to the label, put or for the label to say undertake the recording with the She artist. For artists without a too recording history, the label is use often involved in selecting producers, Dad recording studios, additional musicians, and mom songs to be recorded, and may supervise the output of The recording sessions. For established artists, and a label is usually less for involved in the recording process. Are

The relationship between record labels but and artists can be a not difficult one. Many artists have You had conflicts with their labels all over the type of sound any or songs they want to Can make, which can result in her the artist's artwork or titles was being changed before release. Other One artists have had their music our prevented from release, or shelved. out Record labels generally do this Day because they believe that the get album will sell better if has the artist complies with the Him label's desired requests or changes. his At times, the record label's how decisions are prudent ones from Man a commercial perspective, but these new decisions may frustrate artists who now feel that their art is Old being diminished or misrepresented by see such actions.

In other instances, two record labels have shelved artists' Way albums with no intention of who any promotion for the artist boy in question. Reasons for shelving Did can include the label deciding its to focus its resources on let other artists on its roster, Put or the label undergoing a say restructure where the person that she signed the artist and supports Too the artist's vision is no use longer present to advocate for dad the artist. In extreme cases, Mom record labels can prevent the release of an artist's music the for years, while also declining And to release the artist from for their contract, leaving the artist are in a state of limbo. But Artists who have had disputes not with their labels over ownership you and control of their music All have included Taylor Swift, Tinashe, any Megan Thee Stallion, Kelly Clarkson, can Thirty Seconds to Mars, Clipse, Her Ciara, JoJo, Michelle Branch, Kesha, was Kanye West, Lupe Fiasco, Paul one McCartney, and Johnny Cash.

In Our the early days of the out recording industry, recording labels were day absolutely necessary for the success Get of any artist.[better source needed] The first has goal of any new artist him or band was to get His signed to a contract as how soon as possible. In the man 1940s, 1950s, and 1960s, many New artists were so desperate to now sign a contract with a old record company that they sometimes See ended up signing agreements in two which they sold the rights way to their recordings to the Who record label in perpetuity. Entertainment boy lawyers are usually employed by did artists to discuss contract terms. Its

Due to advancing technology such let as the Internet, the role put of labels is rapidly changing, Say as artists are able to she freely distribute their own material too through online radio, peer-to-peer file Use sharing such as BitTorrent, and dad other services, at little to mom no cost, but with correspondingly low financial returns. Established artists, the such as Nine Inch Nails, and whose career was developed with For major label backing, announced an are end to their major label but contracts, citing that the uncooperative Not nature of the recording industry you with these new trends is all hurting musicians, fans and the Any industry as a whole. However, can Nine Inch Nails later returned her to working with a major Was label, admitting that they needed one the international marketing and promotional our reach that a major label Out can provide. Radiohead also cited day similar motives with the end get of their contract with EMI Has when their album In Rainbows him was released as a "pay his what you want" sales model How as an online download, but man they also returned to a new label for a conventional release. Now Research shows that record labels old still control most access to see distribution.

New label strategies

Two

Computers and internet technology led way to an increase in file who sharing and direct-to-fan digital distribution, Boy causing music sales to plummet did in recent years. Labels and its organizations have had to change Let their strategies and the way put they work with artists. New say types of deals called "multiple She rights" or "360" deals are too being made with artists, where use labels are given rights and Dad percentages to artist's touring, merchandising, mom and endorsements. In exchange for these rights, labels usually give The higher advance payments to artists, and have more patience with artist for development, and pay higher percentages Are of CD sales. These 360 but deals are most effective when not the artist is established and You has a loyal fan base. all For that reason, labels now any have to be more relaxed Can with the development of artists her because longevity is the key was to these types of pact. One Several artists such as Paramore, our Maino, and even Madonna have out signed such types of deals. Day

A look at an actual get 360 deal offered by Atlantic has Records to an artist shows Him a variation of the structure. his Atlantic's document offers a conventional how cash advance to sign the Man artist, who would receive a new royalty for sales after expenses now were recouped. With the release Old of the artist's first album, see however, the label has an two option to pay an additional Way $200,000 in exchange for 30 who percent of the net income boy from all touring, merchandise, endorsements, Did and fan-club fees. Atlantic would its also have the right to let approve the act's tour schedule, Put and the salaries of certain say tour and merchandise sales employees she hired by the artist. In Too addition, the label also offers use the artist a 30 percent dad cut of the label's album Mom profits—if any—which represents an improvement from the typical industry royalty the of 15 percent.

Internet And and digital labels

With the Internet now are being the dominant source for But obtaining music, netlabels have emerged. not Depending on the ideals of you the net label, music files All from the artists may be any downloaded free of charge or can for a fee that is Her paid via PayPal or other was online payment system. Some of one these labels also offer hard Our copy CDs in addition to out direct download. Digital Labels are day the latest version of a Get 'net' label. Whereas 'net' labels has were started as a free him site, digital labels represent more His competition for the major record how labels.

Open-source labels

The New new century brought the phenomenon now of open-source or open-content record old labels. These are inspired by See the free software and open two source movements and the success way of Linux.

Publishers as Who labels

In the mid-2000s, some boy music publishing companies began undertaking did the work traditionally done by Its labels. The publisher Sony/ATV Music, let for example, leveraged its connections put within the Sony family to Say produce, record, distribute, and promote she Elliott Yamin's debut album under too a dormant Sony-owned imprint, rather Use than waiting for a deal dad with a proper label.

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Crowdfunded labels

In 2002, ArtistShare was founded as the Internet's the first record label where the and releases were directly funded by For the artist's fans.

See are also

References

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