What Do Record Labels Do? Complete Guide to Music Industry Labels

What Do Record Labels Do? Complete Guide to Music Industry Labels

By Marcus Stevenson

December 3, 2024 at 07:43 PM

Record labels are companies that handle the production, distribution, and promotion of music for artists. Let me break down exactly what record labels do and why they're still relevant in today's digital age.

At their core, record labels serve as investors and business partners for musicians. They provide the necessary funding, expertise, and industry connections to help artists develop their careers and reach wider audiences.

Here are the main functions of a record label:

• Artist Development: Labels work with artists to refine their sound, image, and overall brand
• Recording: They fund and oversee the recording process, including studio time and production costs
• Distribution: Labels get music onto streaming platforms, into stores, and on radio stations
• Marketing: They create and execute promotional strategies across various channels
• Legal Support: Labels handle contracts, licensing, and copyright protection
• Tour Support: Many labels help fund and organize concert tours
• Music Video Production: They finance and oversee the creation of visual content

Modern record labels have adapted to the digital era by offering additional services like social media management, playlist pitching, and digital marketing strategies. While some artists choose to remain independent, major labels still provide valuable resources that can be difficult to access independently.

There are three types of record labels you should know about:

• Major Labels: Universal, Sony, and Warner - controlling about 70% of the music industry
• Independent Labels: Smaller companies that often focus on specific genres or local scenes
• Distribution Labels: Companies that primarily handle music distribution services

I've noticed that labels typically take between 50-85% of an artist's earnings in exchange for their services. This might seem high, but it reflects the significant investment and risk labels take on with each new artist they sign.

Record labels remain important because they provide:

• Industry Connections: Access to producers, songwriters, and other industry professionals
• Financial Support: Upfront funding for recording, marketing, and touring
• Professional Expertise: Guidance from experienced industry veterans
• Global Distribution: Established networks for worldwide music distribution
• Marketing Power: Resources for large-scale promotional campaigns

In today's music industry, record labels continue to evolve, offering more flexible deals and digital-first strategies while maintaining their core function of helping artists reach their audience and build successful careers in music.

Whether an artist needs a record label depends on their goals, resources, and business acumen. While independent success is more achievable than ever, record labels still play a crucial role in developing and promoting major artists in the music industry.

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