Independent record labels are small companies that produce and distribute records . They are not affiliated with or funded by the three major records labels. ... Some independent labels, particularly those with successful artists, sign dual-release, or distribution only agreements with major labels.
What is the difference between major and independent record labels?
While major labels are global and operate their own publishing and distribution companies, indie labels work with other smaller companies , either in long-term partnerships or in smaller contractual relationships for their distribution and publishing needs.
How do you own an independent record label?
- Create a Record Label Business Plan.
- Choose Your Record Label’s Business Structure.
- Determine Your Business Costs.
- Create a Unique Name for Your Record Label.
- Register Your Business and Open Financial Accounts.
- Purchase Equipment for Your Record Label.
- Market Your Record Label.
What makes a record label major?
Major record labels or “internationals” are large companies often under the control of a corporate umbrella called a “music group .” They operate their own distribution and publishing companies. Major record labels are also heavily funded. They have big financial budgets for marketing, production, touring, and more.
What do independent record labels offer?
Instead of getting nickeled-and-dimed by big labels who want their percent, an indie label can offer a more customized contract experience. For one, indie labels tend to give larger royalty percentages to their artists , and rarely do complete 360 music deals, which puts more money in your pocket.
What major problems do independent recording labels face?
Indie labels often face an uphill battle trying to get their music heard , as they typically have far fewer financial resources to promote their music than the major labels do.
Do record labels own your music?
When a record label licenses your music, they essentially purchase the rights to an album from you – and manufacture, promote and distribute it. They’ll pay you a set fee and act as your label for that album in the territory – or area that they licenced the album in.
How do independent record labels make money?
Record companies make money by marketing and investing heavily in their products – in this case, the product is the artist & their music. For smaller labels, recording costs average $15K per album. For large labels, the average cost can be from $100K to $500K and up.
Can you start a record label with no money?
As you can see, when it comes to starting a record label with no money, it all comes down to careful cost management . You will need some money behind you to really get going, but don’t write off your ability to do a lot of work in-house to save money.
Should a record label be an LLC?
The limited liability company (LLC) is ideal for most record label businesses . An LLC is easy and inexpensive to set up, and has the least administrative requirements of any formal business entity.
Do record labels ask for money?
Generally, a label will advance costs of production and promotion (or just promotion with many indie labels). It is unusual for them to ask for money.
What percentage does a record label take?
Music labels take as much as 80 percent of those earnings as part of traditional record deals. Bigger stars who negotiate a more favorable royalty split still usually share around 50 percent of music revenue.
Are record labels dying?
The standard record company label – still booming just a decade and a half ago – is dying . ... Previously, many marketing platforms and digital tools were only accessible by record companies on merit of financial ability to purchase or pay for them. Now, marketing music has become dramatically more simplistic.
Is it better to be independent or signed?
Artists who want to retain the master rights, keep 100% of the profits, have complete creative control, and are music business savvy may consider going independent . Artists who want more freedom to work on music, don’t mind fewer profits, and want more exposure may consider signing with a record label.
How do independent artists make money without a record label?
Independent artists can use platforms like Bandcamp to sell their music , in addition to physical products such as vinyl, or a t-shirt, ticket or cassette.
How much is it to start a record label?
The record label business is a large industry and there is room to promote and distribute music everywhere. The average startup cost of a record label is between $200 – $50,000 . But, for large labels, the average cost can be from $100,000 – $500,000.
