Record Labels

Record labels are brands created by music companies that focus on producing, developing, distributing and endorsing audio and video recordings in several formats like CDs, LPs, DVDs, SACDs, cassettes, etc. The name "record label" comes from the paper label found in the middle of a gramophone record.

Most big record labels are owned by a select few multinational companies, who make up more or less the entire global recording industry. However, recent times have seen a surge of independent record labels.

Recording companies generally invest time and money in discovering fresh talent, or molding the talent of artists who are already under contract. The brand's association with the artists helps in promoting the image of both the artist and the brand.

Although they feed off of each other, relationships between record labels and artists are often difficult. Creative differences inevitably creep in. It is not uncommon for artists to have their albums changed in some way by the labels before release. Of course, record labels do this when they think the changes will help the album sell better. From a purely commercial perspective, record labels are generally right.

When the recording industry was flourishing initially, it was imperative for an artist to be associated with labels. In the mid 1900s, several artists ended up signing bad contracts in desperation, at times giving up their music rights. Today, lawyers are deployed to look over a contract before signing with a record label.

In the 1990s, the common use of home studios, CD recorders and the Internet spawned a proliferation of independent labels. Independent labels are generally -- if not always ? owned by the artist, with the focus on making good music and not really sales driven. Independent artists end up having less promotion and airtime, but greater control over their music.

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