Major VS Independent record labels
Introduction
The music industry is large expansive industry that is constantly growing. In this report I will compare the contrast between independent and major record labels and hopefully come to a conclusion what will be the best for my newly produced band Prim. In the modern age the music industry is becoming available to everyone as we can self publish music online and through many other services, my band Prim will already have done this so I want to find a label that leaves them with some entitlement to their songs allowing them to keep some independence. To compare the labels, that will possibly sign my artist to help produce their music and launch them, I will look at what they have to offer but I will also evaluate what the business will be losing in the process.
'Major' record labels
70% of the music industry is made of 'major' record labels mostly owned by american based companies. America is one of our largest media producers and often in connected to the whole entertainment industry because they are the largest investors. This is the control that major records have over the industry. Being such a last investor means that they are able to fund thousands of musicians allowing them to plough more money into marketing and producing the band. The larger labels in this market include Warner music group, EMI, Sony Music and Universal music group. All of these labels have connections to many other connected businesses allowing them to use the produced music in many ways including on soundtracks.
There are many advantages to being signed by a major record label the most important being the fact that they can provide exccessive amounts of funding for newly signed artists. This has happened due to the fact that the record labels have not only produced funding through other successful artists but also because they are connected to investors from within connected companies that provide money for the newly signed artist. With this amount of funding you can produce higher quality music because they can use the newly developed recording suites and the best technology available. This higher quality means that is also more likely to reach higher places such as the top of the charts and is more likely to be played on the radio. Networking and growing contacts are major elements in the music industry as they help for promotion. If you are part of a major record label you have more opportunities to network not only with the people within your label but also any other connected companies that your label may have worked with. This is mainly because of their size and reputation the label would have worked with many people in the industry in the past and could also be part of a synergy allowing you to work with other companies that the conglomerate may own giving you promotion through tv and print.
Major label also come with their disadvantages such as artist unfriendly deals where the artist is forced to be something they don't want to be because its commercially viable. These deals have been known to be damaging to artists within the business cause it limits their freedom and sometimes their choices as a artist. They also own the rights to the music meaning that you cant choose what projects its connected to and who plays it on the radio. Overall,major record labels limit the freedom that the artist may have in the industry tieing them down to a specific image. This can mean there is alot of pressure from the label and the industry as a whole because if your first album does not sell well you may get dropped and this can happen at any time they want. This can lead to artists struggling with the pressure.
There are many advantages to being signed by a major record label the most important being the fact that they can provide exccessive amounts of funding for newly signed artists. This has happened due to the fact that the record labels have not only produced funding through other successful artists but also because they are connected to investors from within connected companies that provide money for the newly signed artist. With this amount of funding you can produce higher quality music because they can use the newly developed recording suites and the best technology available. This higher quality means that is also more likely to reach higher places such as the top of the charts and is more likely to be played on the radio. Networking and growing contacts are major elements in the music industry as they help for promotion. If you are part of a major record label you have more opportunities to network not only with the people within your label but also any other connected companies that your label may have worked with. This is mainly because of their size and reputation the label would have worked with many people in the industry in the past and could also be part of a synergy allowing you to work with other companies that the conglomerate may own giving you promotion through tv and print.
Major label also come with their disadvantages such as artist unfriendly deals where the artist is forced to be something they don't want to be because its commercially viable. These deals have been known to be damaging to artists within the business cause it limits their freedom and sometimes their choices as a artist. They also own the rights to the music meaning that you cant choose what projects its connected to and who plays it on the radio. Overall,major record labels limit the freedom that the artist may have in the industry tieing them down to a specific image. This can mean there is alot of pressure from the label and the industry as a whole because if your first album does not sell well you may get dropped and this can happen at any time they want. This can lead to artists struggling with the pressure.
'Indie' record labels
Indie labels have become a major movement in the music industry slowly growing in popularity over the year. The definition of an indie label can be blurry but the official definition I found is a "a recording label that operates without the funding from major organisations". This in basic terms means that they have no funding bigger couperation also meaning they dont have the pressure that major labels have. Indie label can consist just of one person if they want as you do not have to be part of a large group to have your own label. Popular examples of Indie labels include Cooking Vinyl and Pink mist who also have big named artist signed but are not part of the major label group.
Their are many advantages to being signed to an independant label including the fact that artist get all the rights to the music produced giving them full control of what is done when its produced meaning that they control their own careers. Indie labels also sign you because of their belief in your music and career, they do not want to mold you to fit a sellable image. They also form close personal relationships with the artists because they chosen them personally as the artists career is one of the most important things. This comes together to form pro artist contracts that give the artist the ability to grow without any un needed pressure. They provide the growth that is needed for an artist that is new to the buiness and is finding themselves. These labels also have many schemes that are positive for the artist as the artist will be paid for their music eaither through profit sharing programmes or royalties which they are being paid directly for their work. Indie labels are more personal and postive through systems that help the artist.
There are disadvantages to being signed to indie labels as they cannot provide the funding that a major label can because they have a smaller budget. This smaller budget does mean that there is less chance of recording also meaning that they will have to use less advanced technology. They will also cut down cost through cutting down on production, packaging and distribution. These cuts also extend to the amount of marketing that the label can provide often leading the artist or group to create their own marketing in whatever way they can especially using self promotion through popular site such as facebook or twitter. Indie labels are also smaller so they haven't built the reputation that a major label may have this mean they will also have less influence and power within the music industry although this is currently growing with the modern age. Overall the lack of money does mean that the label is closer to its artists but does leave them at a loss of quality produced music.
Conclusion
The music industry overall is complex trading ground and this is seen through the two different sized labels. Major label have the funding that is needed to get the first step into a bigger career although they don't have the personality and comfort independent label can provide. This also harms the artist trying to make a descion as they must know what they want. If they love music and producing it no matter what the cost they will be at home with an indie labels that can help them grow and produce music that might not come with the benefits from excessive amounts of money. If the artist on the other hand is looking for fame and popularity they may sign to a major that can provide them with all the marketing and promotion that they might need to accomplish this goal. Overall major labels are powerful and influential although they are less intimate and personal with their artists where as indie labels are smaller pro artist companies that dont have the funding that they need.
Recommendations
Due to this report we at Blue Bird management have decided with our newly produced band Prim we are going to sign to a Independent label. We have chosen this mainly sue to their pro artist contracts that will allow Prim to grow before they are forced into the pressures that are connected to being in the major music industry. This way they will control every turn of their career and can use their music anyway that they want. Prim are more interested in making music then becoming famous.This is also suited to their already established fan base. As they will be able to carry on doing smaller gigs for their student aged fans without raising the prices. This way they will be established in the industry but can still keep their independent and unique background.
The independent label that we think as management will suit Prim is Marshall Teller. This small independent label started with the creator Leon Diaper and his couch producing music from 2010 with some of the biggest names in alternative rock such as The vaccines. This will suit Prim build their audience as the connected bands within the label have similar markets meaning that the label have simlair knowledge and history with marketing for this niche audience. The label is said to be great with newcomers to the industry and have other specialist bands that are very alike to Prim. Overall, the choice of a independent label that specializes in alternative rock not only suites the choices that Prim would make but also has less pressure then a major label.
The independent label that we think as management will suit Prim is Marshall Teller. This small independent label started with the creator Leon Diaper and his couch producing music from 2010 with some of the biggest names in alternative rock such as The vaccines. This will suit Prim build their audience as the connected bands within the label have similar markets meaning that the label have simlair knowledge and history with marketing for this niche audience. The label is said to be great with newcomers to the industry and have other specialist bands that are very alike to Prim. Overall, the choice of a independent label that specializes in alternative rock not only suites the choices that Prim would make but also has less pressure then a major label.
