Music Industry
Paramore is an American rock band from Tennessee, formed in 2004. The band currently consists of lead vocalist Hayley Williams, guitarist Taylor York and drummer Zac Farro. The band are signed to 3 record labels. The major record label that they're signed to is 'Warner Music Group' which is one of the big three major music companies. Under this label, Paramore are signed to 'Fueled by Ramen' and 'Atlantic Records' which are two smaller companies owned by Warner.
A record label is a brand or trademark which looks after the marketing and recording of an artist's song and music video, it also covers the production, manufacturing, promoting and distribution. Within the music industry, there are 3 major labels that own other, smaller companies and then there are also independent record labels.
The Big 3...
There are three conglomerate companies that dominate the industry. The 'major labels' control over 80% of the records sold every year, they run 90% of the music industry whereas, independent companies only run 10%.
Universal Music Group runs 37% of the industry due to them owning so many subsidiary labels. Some of their smaller labels have become quite popular such as 'Def Jam' and 'Republic Records'.
34% of the music industry is controlled by Sony Music as they also have lots of subsidiary companies. Well-known smaller labels include 'Columbia Records' and 'Legacy Recordings'.
The third music label is Warner Music Group and they control 19% of the music industry. This company started off as 'Warner Bros movie studio' and then started a music label in the 1950's in order to release soundtracks that were attached to their films. They own other music labels such as 'Atlantic Records' and 'Fueled By Ramen'.
Major labels have more funds at their disposal than indie labels do. This means that they will be able to afford high-quality production, packaging, global physical/digital distribution, world tours and music video shoots. These types of companies also have a profuse amount of connections within the music industry and other sectors that will promote the artist. Another positive thing about major record labels is the fact that they are so big in sizing and can influence popular media outlets.
Even though the major three record labels are a lot more popular and collectively earn more money, there are plenty of bad things about them. The ideologies of the past are now irrelevant as popular radio stations are dying out, online social network and digital music retail stores (iTunes, Spotify and Amazon) have also participated in the failure of the major music industry. Major releases tend to be leaked across social media weeks before they're meant to be released which is obviously a negative thing for both sales and marketing strategies. Due to the size and popularity of the major labels, they do not create such a close, personal relationship with their artists. They also care mostly about creating a profit which means that artists will not have the rights to their own music and cannot decide what happens to it.
Independent...
Independent record labels -also known as an indie label- are independently funded and not connected to one of 'The Big 3'. Some of these labels are smaller and others make huge profits in their business. They face many struggles such as trying to get their music heard, as well as fighting against companies that have more resources. During the 1990's, the line between indie labels and major labels began to blur, and now some large indie labels are actually distributed by one of the major 3 record labels. Despite their struggles, many companies have survived and thrived for years however, others have not lasted for long but have had a massive impact on the music industry both creatively and in terms of a business. An example of a successful independent music company is Domino Records. This label has 'Artic Monkeys' and 'Franz Ferdinand' signed to them.
Another well-known indie record label is Rough Trade Records. This label started off as a shop selling records and once the company successfully sold and promoted artists, the founder started to manage acts and distribute bands such as 'The Libertines' and 'Morrissey'.
Independent record labels are becoming more desirable for new artists, especially as they are also a more realistic goal. Indie labels business has been becoming more and more popular, so much so that many major labels are incorporating indie labels methods in order to achieve future growth as a company. Whilst indie labels can't offer the same kind of funding for artists as major labels can, they do offer many other benefits that artist may find more important. A pro to signing a contract with an independent record label is that the singer gets the rights to their own music and can decide what they want to do with it after it's been recorded. Because these types of record labels are smaller and more personal, the artist was signed because the label believes in their music and enjoys it therefore, the relationship between the artist and the company will be closer.
A con of an indie record label is the lack of funds which results in a smaller budget for recording, production of physical CD's, packaging, distribution costs, tour support, merchandise etc. Another significant problem due to funding is marketing; this may result in the artists having to promote themselves. Many independent record labels are informal, leading to things being done incorrectly. Due to these companies occasionally being so small in size it means that they have less influence and power within the music industry.
