Major Labels and Independent Record Labels, Here are The Differences and How to Manage Them

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FEMUSINDO.com - A music label is a company that produces, distributes, and promotes music recordings and music videos.

In addition to producing, distributing, and promoting, music labels can also manage contracts with artists and their managers.

Based on their management, music labels can be divided into two, namely major record labels and independent record labels.

A major record label is a multinational company that has a world market share of more than 5 percent in sales of recordings and/or music videos.

Meanwhile, an independent (indie) record label is a record label company that operates without being affiliated with and/or funded by a major record label.

Major record labels and independent record labels differ in several ways, such as:

Size

A major record label is a multinational company, while an indie record label is usually a small company.

Funding

Major record labels have large funding, while indie record labels have limited financial resources.

Contracts

Indie labels typically offer more favorable contracts to artists, such as a higher percentage of royalties.

Relationships with Artists

Indie labels tend to have closer relationships with artists due to the small number of artists.

Operations

Indie labels often operate in just one or two cities.

Deals

Indie labels often offer co-publishing deals that allow artists to have more ownership over the material they produce.

Major labels can also acquire indie labels, either in whole or in part, depending on the parties’ agreements. (*)